TDS Online Challan Deposit- Do's and Don'ts

TDS Online Challan Deposit- Do’s and Don’ts

1. Tax Deposit

(a) TDS/ TCS

i. Use challan type 281 for deposit of TDS/TCS.
ii. Quote the correct 10-digit Tax Deduction Account Number (TAN), and name
& address of the deductor on each challan used for depositing tax. You may verify your TAN details from Income Tax Department web-site (www.incometaxindia.gov.in) prior to depositing TDS/TCS.
iii. Use separate challans to deposit tax deducted under each section and indicate the correct nature of payment code in the relevant column in the challan. (For example, 94C for payment to contractors and sub-contractors,
94I for rent. List of codes is mentioned at the back of challan 281).
iv. Use separate challans to deposit tax deducted for different types of deductees,i.e. Corporate or Non Corporate, and indicate the type of deductees in the relevant column in the challan. (For example, in challans to deposit tax deducted from corporate deductees, indicate “COMPANY DEDUCTEES - 0020” and for non corporate deductees indicate “NON- COMPANY DEDUCTEES - 0021”).

(b) Advance Tax / Self-assessment Tax / Tax on Regular Assessment / Surtax

/ Tax on Distributed Profits of Domestic Companies / Tax on Distributed Income to Unit holders.
i. Use challan type 280 for all the above mentioned tax payments.
ii. Quote the correct Permanent Account Number (PAN) and name & address on each challan used for depositing the tax. PAN is a unique 10-digit alphanumeric number allotted by ITD to all taxpayers.
iii. Use Separate challans to deposit taxes for each of the above-mentioned tax and indicate the relevant code (for example 100 for advance tax, 300 for self assessment tax).

  

DON’Ts

i) Do not use incorrect type of challan.
ii) Do not make mistake in quoting PAN / TAN..
iii) Do not give PAN in place of TAN or vice versa.
iv) Each branch / division of an entity will have a separate TAN if it is filing separate TDS/TCS returns. However, there will be only one PAN for a legal entity.
v) Do not use a single challan to deposit tax deducted under various sections.
vi) Do not use a single challan to deposit tax deducted for corporate and non corporate deductees.
vii) Do not use same challan for depositing various types of tax like advance tax, selfassessment tax etc.
viii) Do not make mistake in the F.Y. and A.Y. to be indicated in the challan.
ix) If you have multiple TANs for the same division filing TDS statements, do not use different TANs in different challans. Use one consistently and surrender the others.
x) Do not use the preprinted Challans you receive without verifying whether the TAN / PAN quoted in these challans belongs to you. You can verify the same from the allotment letter you have received from NSDL or from ITD web-
site.

2. Proof of Payment:

(a) After the taxes are paid, the collecting bank branch will give you a counter foil as acknowledgement for the taxes paid. Ensure that the bank has mentioned the Challan Identification Number (CIN) on the counter foil. If not, immediately take up the matter with the bank.