Income Tax Act, 1961 includes the provisions for taxation of any kind of income earned by an in...
TDS is an abbreviation for tax deducted at source, which is managed by CBIT (Central Board of Indirect Taxes). TDS deducts a certain amount from the payments such as salary, interest, commission, etc., to be paid by the employer before making the full payment. The article talks about the process of TDS Payment Challan online in-depth by discussing Challan 281.
TDS Payment Challan is a form that is used to deposit TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) to the government. It was introduced to reduce human errors & to facilitate online transactions of tax collection, deposit, or TDS refund. Under the TDS challan, a certain amount is deducted from the payments such as salary, interest, and commission to be paid by the employer before making the full payment.
Every person who makes a TDS Payment challan 281 is also liable to deposit the TDS Challan amount to the IT Department.
An individual responsible for deducting TDS must get TAN, i.e., Tax Deduction and Collection Account Number. TAN is a 10- digit alphanumeric code or number. It can be obtained by depositing Form No – 49 B, which is available on the NSDL website.
There are three different types of TDS Payment Challan. These are:
It is specially designed for depositing the Income Tax. The Income Tax Payments for advance tax, surcharge, regular assessment tax can be made via Challan 280. The mode of payment can be online or offline and must be paid by the depositor, irrespective of the mode of payment.
It is used for TDS OR TCS.
Due dates for payment of TDS
1. TDS deducted on payments (excluding property purchase): 7th of the following month
2. TDS deducted on the property purchase : 30th of the following month
3. TDS deducted in March: 30th April.
If there is a delay in deposit of tax, interest is levied at the rate of 1.5% / month or part of the month from the date of deduction.
It is used for depositing gift tax, transaction or security tax, wealth tax, etc., or other forms of indirect taxes.
TDS is applicable to other incomes apart from salary.
These incomes are:
A person liable to deduct tax at the source must obtain TAN (Tax Deduction and Collection Account Number). This is a 10- digit alphanumeric number that needs to be mentioned in all the TDS returns, TDS Payment & any other communication with the income tax department.
Under section 203A of the Income Tax Act, 1961, it becomes mandatory to deduct TDS by all the assesse and mention TAN in all the TDS-related documents.
A penalty may be imposed in case of failure to mention TAN in all TDS-related documents.
There are 2 modes of TDS payments:
The steps to be followed in the online mode of TDS payment are:
The TDS payment challan can be done by physically visiting the bank and submitting the Challan. After the submission of the Challan, a bank-stamped counterfoil will be issued as proof of payment.
The payment has to be made either by cash or cheque.
TDS Payment Challan status can be checked online by following these steps:
TDS Challan was introduced to facilitate online transactions and to minimize human error.
The article talks about various types of TDS challan and the processes. It also entails the applicability of TDS and why TAN is important for TDS.
Read our article:How to file TDS Return?