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TDS is the abbreviation for Tax Deducted at Source, managed by the Central Board of Indirect Taxes. TDS Challan is required to deposit the TDS amount deducted to the Income Tax Department. You can use TDS Challan 280, TDS Challan 281 or 282 as per your requirement. Let’s check what is TDS challan, different types of TDS challan and how to check TDS challan status.
What is a TDS Challan?
a) TDS Challan is a form used for depositing Tax Deducted Source (TDS) and Tax Collected at Source (TCS) to the Government.
b) TDS Challan was introduced in 2004 to minimize human error and facilitate online transaction of tax deposit, collection, and TDS refund.
c) Under Challan for TDS, an individual or payer responsible for making specified payments like salary, interest, rent, commission, and similar others is accountable to deduct a stipulated percentage of amount before paying it to its payee or employee.
d) Every individual, who makes TDS payment challan 281, is also accountable for depositing TDS challan amount to the Income Tax Department.
Types of Challan for TDS
The issued copy of Challan for TDS makes it easy for an individual taxpayer to track the status of their e-challan that is to be deposited in the banks. There are 3 different types of challan for TDS issued to a taxpayer.
1) TDS Challan 280 – is specifically for depositing income tax.
2) TDS 281 Challan – is specifically for Tax Deducted at Source (TDS) and Tax Collected at Source (TCS).
3) TDS Challan 282 – is for depositing gift tax, wealth tax, transaction or security tax, and similar other forms of indirect tax.
TDS Challan 281 Online Compliance
TDS 281 Challan is issued when a taxpayer deposits TDS and TCS, for which they must comply with the timelines specified for depositing tax.
Due date for depositing TDS 281 Challan:
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1) TDS Challan for payments excluding property purchase –7th of every subsequent month.
2) TDS Challan for the purchase of property –30th of every subsequent month.
3) TDS Payment Challan 281 issued in March – April 30.
Interest of 1.5% is charged per month if TDS payment challan 281 is delayed.
Types of Single Copy TDS Challan
Three new single copy TDS challan was introduced in 2004 for easing the process are:
1) Single copy TDS challan no. ITNS 280 – includes payment of income tax, wealth tax, corporation tax.
2) Single copy TDS challan no. ITNS 281 –includes deposition of TDS from corporates and non-corporates.
3) Single copy TDS challan no. ITNS 282 – includes payment for estate duty, expenditure tax, gift tax, similar other miscellaneous taxes.
4) Single copy TDS Challan no. ITNS 283 – includes payments for Fringe Benefits tax and Banking Cash Transaction tax.
5) Single copy TDS Challan no. ITNS 286 – includes payments under declaration of income.
6) Single copy TDS Challan no. ITNS 287 – includes payments under (PMGKY) Pradhan Mantri Garib Kalyan Yojana.
After depositing their TDS challan, every individual gets a duly stamped with Challan Identification Number (CIN) as an acknowledgement.
Also Read: TDS Rates
See how the latest budget impacts your tax calculation. Updated as per latest budget on 1 February, 2020. No deductions will be allowed under the new tax regime.
How to Download TDS Challan?
1) Visit TIN NSDL website
2) Go to ‘Services’ section and click on OTLAS.
3) You will be redirected to OTLAS-Challan Status Inquiry Page. Click on download.
4) You will be redirected to the ‘Challan’ page. From here, you can download your required copy of TDS Challan.
How to Check Status of TDS Challan?
1) Visit TIN NSDL website
2) Go to ‘Services’ section and click on OTLAS.
3) You will be redirected to OTLAS-Challan Status Inquiry Page. You will see two sections – for taxpayer and the bank.
4) Since you are a taxpayer, you can select between two options – CIN based and TAN based – to check status of your TDS Challan.
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CIN Based TDS Challan Status Enquiry
When you open CIN based TDS Challan status enquiry page, you must enter details from the counterfoil returned upon payment towards Challan 281 online. CIN stamp contains details of BSR code for your collecting branch, challan 281 tender date, TDS challan serial number and the amount paid towards TDS challan.
You can view the following details:
1. BSR branch code
2. Deposit date
3. TDS Challan serial number
4. Major head code with description
5. PAN/TAN details
6. Your name or name of the taxpayer
7. Date of receipt by TIN
8. Confirmation of amount entered
After entering required details on CIN based TDS Challan status enquiry page, click on view and you will see all your reports.
TAN Based TDS Challan Status Enquiry
When you open TAN based TDS Challan status enquiry page, you must fill the required details to know the details.
a) Enter your TAN number in uppercase (e.g. MUMM11111A).
b) Enter TDS Challan date of deposit or period for which you want to know the status.
c) After filling all the details, you can view or download your TDS Challan status.
Things to Know for downloading TDS Challan details:
1) Upon selecting download option, a text file containing details will be available for provided TAN and its period.
2) You can use this file to verify TDS challan mentioned in the quarterly e-TDS/TCS statements.
3) If you want to verify TDS Challan details, import this file to FVU – File Validation Utility –along with quarterly statement file.
4) Once the validation of quarterly e-TDS/TCS is successful, FVU will provide relative statistics for your TDS Challan mentioned in the statement.
5) Period selection should not exceed 24 months.
How to Calculate TDS on Salary?
1) Calculate your total earnings of a financial year including bonus, commission, and other perks.
2) Collect proof of investment at the end of each year from your employer.
3) Know your tax deductions for calculation of net taxable income. Your employer will calculate TDS as per the income slabs for your net taxable income.
4) Deposit your TDS collection with the central government within the stipulated time to avoid penalties.
Read More: TDS on Salary
Example:
Age – 40 years
Total income – Rs.5lakh
Net Taxable Income – Rs. 2.5 lakh (Tax exemption up to Rs. 2.5 lakh on total income)
You must pay 5% of Rs. 2.5 lakh under TDS Challan
Note – TDS is deducted every month from your salary. Your expected TDS liability for a year is divided by 12, which is collected each month.
How to Pay TDS Challan 281 Online?
1) Visit TIN NSDL website
2) Select your relevant single copy challan (most individuals use TDS 281 Challan).
3) Enter your accurate details.
4) In the confirmation window, your full name or the name of the taxpayer will be displayed as per ITD PAN/TAN master (after validation of PAN/TAN).
5) After confirmation, you will be guided to net-banking site.
6) Login with your user ID and password provided by the bank and enter payment details.
7) After successful payment, TDS Challan counterfoil will appear with CIN and bank details.
8) Download CIN counterfoil as proof of your successful payment.
What are Pre-requisites for TDS Deduction?
1) Every individual having TDS Challan shall get TAN – Tax Deduction and Collection Account Number.
2) Upon depositing form 49B (available at TIN NSDL website) with fees, you will receive 10-digit number quoted as TAN.
What are Pre-requisites for TDS Deduction?
1) Every individual having TDS Challan shall get TAN – Tax Deduction and Collection Account Number.
2) Upon depositing form 49B (available at TIN NSDL website) with fees, you will receive 10-digit number quoted as TAN.
3) Quote 10-digit TAN number for all communication with the IT department relating to Challan for TDS.
4) A failure to quote TAN for challan for TDS attracts a penalty of Rs. 10,000.
3) Quote 10-digit TAN number for all communication with the IT department relating to Challan for TDS.
4) A failure to quote TAN for challan for TDS attracts a penalty of Rs. 10,000.
FAQs on TDS Challan
Q. Can a person claim deduction on HRA for TDS Challan?
A. Yes. You must submit your paid rent proof or evidence to claim HRA deductions for TDS challan.
Q. How much amount is eligible for deduction u/s 80C for challan for TDS?
A. As per the Income Tax Act 1961 of India, you can claim up to Rs 1.5 lakhs under Section 80C for challan for TDS.
Q. What should a person do to exempt TDS Challan for a year?
A. You can only ask for TDS challan exemption if your total income falls below Rs 2.5 lakhs or is negligible. For this, you must submit declaration form 15H and 15G
Q. How does a salaried individual know about their TDS Challan details?
A. For a salaried individual, you can ask your employer to provide you with TDS Challan certificate. In other scenarios, you can visit website of the Income Tax department. Click on ‘View Your Tax Credit’, check Form 26AS. It will tell you all the details.
Q. If your employer or payer does not pay challan for TDS, how it affects you as an employee?
A. If your employer does not pay challan for TDS, you will not have to pay any penalties as an employee. It is entirely the responsibility of your employer or payer to pay challan for TDS on time. However, you pay your tax liabilities while filing annual returns. If your employer fails to pay challan for TDS, you will still be eligible for paying taxes.
Also Read: TDS Return
Now that you have an understanding of ‘what is a TDS Challan?’ and its inherent processes, you must pay challan for TDS on time.
Sources:
https://www.paisabazaar.com/tax/tds-challan/
https://tin.tin.nsdl.com/oltas/index.html
https://www.tin-nsdl.com/
Disclaimer:
Save 46800 on taxes if the insurance premium amount is Rs.1.5 lakh per annum and you are:
- Regular Individual
- Fall under 30% income tax slab having taxable income less than Rs. 50 lakh
- Opt for Old tax regime
ARN: Aug21/Bg/18FF
