What is TDS Challan?
Payer must deposit TDS with the government after he deducts it. The Tax department has defined different challans for deposit of different type of taxes. Challan ITNS 281 is TDS challan to deposit TDS/ TCS .
Challan needs to be kept in record since it is used for TDS return filing. While filing TDS return quarterly details such as Challan Serial Number, BSR code, Tax Amount is compulsory
When to deposit TDS/TCS through challan ITNS 281?
Due dates for TDS/TCS challan deposit through challan ITNS 281 are as below:
|Period||Due Date of Deposit|
|Tax Deducted from April to February||7th of the next month|
|Tax Deducted in March||
TDS: 30th April
TCS: 7th April
|Tax Deducted on Purchase of Property||30th 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?
One can file TDS challan online from TIN NSDL with the help of following steps:
- Select Challan
For TDS select Challan ITNS 281
- Choose Deductee type
Select Deductee type which will be based on TDS deducted by you. If you have deducted TDS of an individual then select (0021) Non Company Deductees however if you have deducted TDS of a company then select (0020) Company Deductees.
Moreover, Deductor should use separate challan to deposit tax deducted for different type of deductees.
- Enter TAN and Assessment Year
Enter 10 digit TAN, and then select correct Assessment Year
- Fill up deductor details
Details such as 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.
- Enter Nature of payment
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.
- Enter Details of payment
Details of payment such as 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?
After the deductor deposits tax then a counterfoil as an acknowledgment will be generated . This counterfoil will contain details of tax deposited as well as CIN (Challan Identification Number). CIN is comprise of various details such as 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 TDS challan deposited?
Deductor can check status of particular challan from TIN NSDL , in following two manners:
- CIN Based View,
- TAN Based View.
1. CIN Based View: Enter required details such as 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 as well as Minor Head of tax deposited,
- Assessment Year of the tax deposited,
- Date of Receipt by TIN,
- Amount of Challan,
- Status of Challan, whether challan details you provide are matching 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 being deposit.
2. TAN Based View: Enter TAN and also 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. You can view following details:
- Challan Tender Date,
- Challan Serial Number,
- Received Date,
- Major as well as Minor Head,
- Nature of Payment,
- In amount field if deductor adds the amount then he can confirm it as well and also he can check on status that whether amount is matching or not is shown.
It is important to check the status of each challan deposited before you file your TDS Return so as to avoid incorrect challan details in return and also 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.
Tax Collected at Source (TCS) is an income tax, collected by the seller of a specified goods, from the buyer at the time of sale of such goods, whereas TCS is a concept where a person selling specific items is liable to collect tax from a buyer at a prescribed rate and deposit the same with the Government.
Whereas, Tax Deducted at Source (TDS) is an indirect method of collecting Income Tax. TDS is based on the principle of “Pay as you earn” which is beneficial for both Government as well as the taxpayer. Tax Deducted at Source (TDS) is a concept where a person making payment of specified nature is liable to deduct tax at source at a prescribed rate and also deposit the same with the Government.
There are two modes via which tax deducted or collected at source can be deposited to the credit of the central government account.
E – payment of TDS is mandatory for:
-All corporate assesses
-Assesses other than the company to whom the provisions of section 44 AB of the Income Tax Act, 1961 are applicable
Through this mode, the deductor is required to furnish challan 281 in the authorized bank branch and deposit cash there.
No, you should deposit separate cheques for each challan.