Archive for eTDS

Following deduction will be available from salary for ITax Rebate 1) Mileage 2)Compensation under voluntary retirement scheme; 3)Amount of gratuity received on retirement or death; 4)Amount received on commutation of pension


Dear Friends,

When I first read the Direct Tax code , Like other people I first read the New Tax Rate and published the same for you and all other website in www discuss benefits from direct tax code but now we will discuss here what have taken back from us. Remember as per Govt Statement tax revenue will Increase after implementation of new Direct Tax Code. In This post we will cover the salaried Class.

Under the Code, the salary will now include, inter-alia, the following:-

  1. the value of rent free, or concessional, accommodation provided by the employer irrespective of whether the employer is a Government or any other person; (earlier nominal value for Govt Employees)(read earlier rules here:valuation of rent free accommodation)
  2. the value of any leave travel concession;(earlier exempted up to 2 journey in four year block)(read earlier rules here: LTC Exemption
  3. the amount received on encashment of unavailed earned leave on retirement or otherwise;(earlier exempted for 30 days for each year of service or maxi 3.00 Lakhs) (read earlier rules here:leave encashment )
  4. medical reimbursement; and 
  5. the value of free or concessional medical treatment paid for, or provided by,the employer.(read earlier rules here:valuation of medical facility)
  6. The value of rent-free accommodation will be determined for all employees in the same manner as is presently determined in the case of employees in the private sector. The new regime of comprehensive taxation of perquisites across employees in all sectors of the economy will improve both the horizontal and vertical equity of the tax system.

Download Direct Tax code 2009 Download Direct tax code discussion paper Read Direct tax code Online


Further the following deduction will be available from salary income

  1. amount of professional tax paid;
  2. transport allowance to the extent prescribed;
  3. prescribed special allowance or benefit to meet expenses wholly and exclusively incurred in the performance of duties, to the extent actually incurred;
  4. compensation under voluntary retirement scheme;
  5. amount of gratuity received on retirement or death;
  6. amount received on commutation of pension; and
  7. pension received by gallantry awardees.

Further Item at Sr No 4,5,6 would  be available to the extent the amounts are paid to, or deposited in a Retirement Benefits Account. The amounts received from an approved superannuation fund, hitherto exempt from income tax, will henceforth also be treated in the same manner.

So there will be no exemption for House rent Allowance (HRA) (read HRA present rule) Further exemption for following allowances has also not been provided in new Direct tax code as compare to present tax provisions.

  1. entertainment allowance
  2. children education allowance
  3. children Hostel allowance
  4. HRA (house rent allowance)

The list is not exhaustive but we can say that other than deduction prescribed above no deduction from salary income is allowed. Further EET regime has been now fully introduced for all type of savings scheme which we discuss in separate post.

E: exempt at the time of Investment

E:Interest ,bonuses ,increments during the period of investment will not be taxed at all

T:full amount received at the time of Maturity is taxable in the hands of assesses.

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NSDL has released a new eTDS return preparation utility (RPU) version 1.7 yesterday.This utility is to be used for preparing eTDS return for forth quarter of 2008-09 Financial year. Though Old return are also can be filled through this utility (q1-q3,2008-09).To validate this new RPU ,new File validation utility(fvu)has also been released i.e 2.216 .
This utility contain following

  1. eTDS return software form 24Q(for salary)
  2. eTDS Return Form 26Q (tds other than salary)
  3. eTDS return 27Q( non resident)
  4. Etcs return 27EQ(for tax collected at source)
  5. inbuilt File validation utility version 2.216(dated 13.04.2009)
  6. Correction return software for 24Q, 26Q, 27Q, 27EQ

This new utility is not a part of new TDS system  which consist of  Form 17,Form 24C and other new form and this will work only for TDS/TCS deducted upto 31.03.2009. For new System new RPU and FVU is awaited .
Installation process is given below

  1. First download File from link given below
  2. Then unzip the file downloaded in a directory/folder 
  3. Do not delete/move any file from unzipped folder  and do process given as under.other help menu is available in file itself

e-TDS RPU Setup – Readme

1. Pre-requisite 

Before installing RPU.exe first click on RPUSetup.bat file located at the path selected for extraction of the files (if no path was specified at the time of extraction then it will be located at the default path ‘C:e-TDS RPU’).

A dialog box as shown in figure 1 will be displayed indicating registration of DLL is successful.

Figure 1

Click OK and next dialog box as shown in figure 2  will be displayed indicating registration of DLL is successful.

Figure 2

Click OK again and next dialog box as shown in figure 3 will be displayed indicating registration of DLL is successful.

Figure 3

Click OK once again.

Now all the pre required DLLs have been successfully registered on your machine.

2. How to run the e-TDS RPU

To run ‘e-TDS RPU’ click ‘RPU.exe’ file. If RPUSetup.bat is not successfully installed on computer then on clicking ‘‘RPU.exe’ errors as shown in figure 4, 5, 6 and 7 may be displayed.

Figure 4

Click OK again and next dialog box as shown in figure 5 will be displayed indicating registration of DLL failed.

Figure 5

Click OK again and next dialog box as shown in figure 6 will be displayed indicating registration of DLL failed.

Figure 6

A dialog box as shown in figure 74 will be displayed indicating registration of DLL failed.

Figure 7

In such case run RPUSetup.bat and try again or either log in as system administrator or contact to your system administrator.

If RPUSetup.bat is successfully installed then the ‘e-TDS RPU’ will be displayed (figure 8). 

Figure 8

Before preparing electronic return through this RPU read instructions which have been provided as‘Help’ in RPU

The ‘comdlg32.ocx, RPUSetup.bat, SPR32X30.oca, SPR32X30.ocx, TABCTL32.OCX,scrrun.dll,RPU.exe, rpuhelp.html, style.css, e-TDS RPU Setup Readme.rtf’ files should be present in the same folder to run the RPU.

Feed Reader kindly visit this link to download the new free software Download new RPU(return Preparation utility 1.7 release on 13.04.2009 including new FVU 2.216)

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