How to deposit TDS/TCS?

Author
By Hiral Vakil on February 18, 2019

What is TDS Challan?

The Tax department has defined different challan for deposit of different type of tax. Once TDS is deducted by the payer, it needs to be deposited with the government. TDS challan is used to deposit TDS/ TCS deducted in ITNS 281.

TDS challan needs to be kept since it is used for TDS return filing. Details like Challan Serial Number, BSR code, Tax Amount is compulsory while filing TDS return Quarterly.

When to deposit TDS/TCS through challan ITNS 281?

Due dates for TDS/TCS challan deposit through challan ITNS 281 are as below:

PeriodDue Date of Deposit
Tax Deducted from April to February7th of the next month
Tax Deducted in March TDS: 30th AprilTCS: 7th April
Tax Deducted on Purchase of Property30th of the next month in which sales consideration is paid to seller.

In case of delay in deposit of tax, penalty interest is levied u/s 201(1A) of the act at the rate of 1.5% per month or part of the month from the due date of deposit.  

How to file TDS/TCS challan online?

TDS challan can be filed online from TIN NSDL with the help of following steps:

  • Select Challan ITNS 281
  • Select Deductee type based on TDS deducted by you. If you have deducted TDS of an individual then select (0021) Non Company Deductees and if you have deducted TDS of a company then select (0020) Company Deductees,
  • Deductor should use separate challan to deposit tax deducted for different type of deductees.
  • Enter 10 digit TAN, and select correct Assessment Year,
  • Address, Email ID and Mobile Number of deductor is required alongwith type of payment made. If you are depositing TDS every month then you need to select type of payment as (200) TDS/TCS payable by taxpayer, and if amount is deposited as per demand raised by the AO.
  • Nature of payment is a section under which tax is deducted by the deductor and it is also mandatory to deposit TDS/TCS with government.
  • Details of payment i.e, the TDS amount, Surcharge, Cess, Late Fees needs to be entered at the time of deposit of tax. One needs to be careful while entering the details because once payment is done if any mistake is made then it can only be rectified by the concern AO.

What is the proof of deposit made?

Once tax is deposited by the deductor, a counterfoil as an acknowledgment will be generated. This counterfoil will contain details of tax deposited along with CIN (Challan Identification Number). CIN is comprise of BSR code, Challan Serial Number and Date of deposit. If CIN is not present on counterfoil then contact your bank branch.

How to check the status of challan deposited?

Deductor can check status of particular challan from TIN NSDL , in following two manners:

  1. CIN Based View,
  2. TAN Based View.

1. CIN Based View: Enter BSR Code, Challan Tender Date, Challan Serial Number and Amount along with captcha code and click on view. You will be able to check the following details:

  • Major Head and Minor Head of tax deposited,
  • Assessment Year of tax deposited,
  • Date of Receipt by TIN,
  • Amount of Challan,
  • Status of Challan, whether challan details provided by you are matched or not with the details available with the tax department.
  • In case no records were found for particular challan or there is any discrepancy then deductor needs to inquire with the bank branch from where tax was deposited.

2. TAN Based View: Enter TAN and from and to date for a period for which you wish to see the challan deposited and captcha. Here you have two options either you can view challan details after entering the above information or you can download the CSI file which is required at the time of filing quarterly TDS return. Following details are viewed :

  • Challan Tender Date,
  • Challan Serial Number,
  • Received Date,
  • Major and Minor Head,
  • Nature of Payment,
  • In amount field if amount is added by deductor then same can be confirmed as well. And status of whether amount is matched or not is shown.

It is important to check the status of each challan deposited before you file your TDS Return to avoid incorrect challan details in return and processing of TDS return without any error. Hence it is a good practice to check status of challan deposited before downloading CSI file and filing TDS return.