TDS CHALLAN SUBMISSION

TDS CHALLAN SUBMISSION

In India, TDS (Tax Deducted at Source) challan submission is the process by which a deductor (the person or entity deducting tax) remits the collected TDS amount to the government. This is a mandatory compliance requirement under the Income Tax Act, 1961. The primary challan used for this purpose is Challan 281.

How to submit Challan 281

There are two main methods for submitting TDS Challan 281:

1. Online Payment (e-payment - Recommended)

This is the preferred and more convenient method.

• Visit the Tax Information Network (TIN) portal: Go to the official website of the Tax Information Network (TIN) of the Income Tax Department (managed by Protean eGov Technologies Limited - formerly NSDL e-Gov).
• Select Challan 281: On the portal, select the option for Challan 281.
• Enter Deductor Details: Provide details such as:
  • Tax Applicable: Select '(0020) Company Deductees' or '(0021) Non-Company Deductees' based on the entity for whom tax was deducted.
  • Type of Payment: Select '(200) TDS/TCS Payable by Taxpayer' for regular payments or '(400) TDS/TCS Regular Assessment' for payments arising from demand notices.
  • Nature of Payment: Select the relevant section of the Income Tax Act under which tax was deducted (e.g., 94A for interest, 94C for contractors, 94I for rent, 94J for professional fees).
  • Assessment Year: Select the relevant Assessment Year for which the tax is being paid.
  • Deductor's PAN: Enter the Permanent Account Number (PAN) of the deductor.
• Choose Payment Method: Select your preferred payment method (Net Banking or Debit Card).
• Make Payment: You will be redirected to your bank's website to complete the payment.
• Receive Challan Counterfoil: After successful payment, a challan counterfoil will be displayed, containing the CIN (Challan Identification Number), payment details, and bank name through which the e-payment was made. Save or print this counterfoil as proof of payment.

2. Offline Payment

This method involves physically visiting a bank branch.

• Fill Challan 281 Form: Obtain a physical Challan 281 form from a bank or download and print it from the Income Tax Department's website.
• Fill in Details: Manually fill in all the required details as mentioned above (Tax Applicable, Type of Payment, Nature of Payment, Assessment Year, Deductor's PAN, etc.).
• Submit to Bank: Deposit the filled challan along with the TDS amount (cash or cheque) at any authorized bank branch.
• Receive Stamped Counterfoil: The bank will return a stamped counterfoil of the challan, which includes the Challan Identification Number (CIN) and date of deposit. Keep this safe as proof of payment.

Important points to remember

• Due Dates: TDS must be deposited by specific due dates, which typically vary based on whether the deductor is a government office or other deductors, and the month of deduction. For most non-government deductors, the due date is the 7th of the succeeding month. For deductions made in March, the due date is April 30th.
• Challan Identification Number (CIN): This 17-digit number is crucial. It consists of the Bank BSR Code (7 digits), Date of Deposit (DDMMYYYY - 8 digits), and Challan Serial Number (5 digits). It is required when filing TDS returns (Form 24Q, 26Q, 27Q, 27EQ).
• TAN (Tax Deduction and Collection Account Number): The deductor's TAN is mandatory for all TDS Challan submissions and returns.
• Separate Challans: For company and non-company deductees, separate challans should be used if tax is deducted from both categories.
• Verification: It is recommended to verify the challan status online on the TIN-Protean website using the CIN after a few days to ensure the payment has been correctly recorded.