TDS Challan 281 is used for depositing TDS and TCS by corporate as well as non-corporate entities. TDS is a mechanism introduced by the Government in which the person (deductor) before making the payment of specified nature (such as salary, rent, etc.) to the payee shall deduct tax at a specified percentage of such amount payable and deposit it to the Income Tax Department.

Due date for filing TDS Challan 281

TDS is to be paid by all assesses who have deducted TDS at the time of incurring expenditure. The due date for the payment of TDS is different for the government and non-government assessee.

 For Non-Government assessee

  1. Tax is to be deposited for months other than March – 7th of the next month. For example, if the TDS is to be deposited for the month of August 2017, the due date shall be September 7, 2017.
  2. Tax is to be deposited for the month of March – 30th April. For example- if the TDS is to be deposited for the month of March 2017, the due date shall be April 30, 2017.

 For Government assessee

  1. Tax Deposited without challan – Same Day
  2. Tax deposited with challan – 7th of the next month. For example-, the due date shall be June 7, 2017, if the TDS is to be deposited for the month of May 2017,

Consequences in case of delay

If TDS is deducted on time but not deposited within the specified time period, interest on such amount is payable at the rate of 1.5% every month from the date on which it should have been paid.

For example– If the TDS for the month of October 2017 is deposited on December 15, 2017, then in such case the due date of payment was November 7, 2017 However since the payment is not made in time interest at the rate of 3% will be payable, i.e. for two months, November as well as December.

Details which are required to file:

  • Tax Applicable: This is the first column of the form, it has two options:
  1. 0020: This is applicable in the case of income tax of companies, i.e. if the deductee is a company such as XYZ Ltd. then code 0020 should be selected. Whether an entity is a company or not can be checked by the PAN no. of the entity, the fourth letter of the PAN No. shall be “C” in the case of company.
  2.  0021: This is applicable to income tax for other than companies, i.e. if the deductee is not a company, it may be an individual, HUF, partnership firm, etc.; this code should be selected.
  • Assessment year: Assessment year is the year in which tax is to be paid in respect of the income earned during the previous year. Assessment year is the year next to the previous year.
  • TAN No., Name and address: Enter the TAN no. and the name of your company.
  • Type of payment:  It relates to the TDS payment category:
  • If the tax is paid by the taxpayer on monthly basis on his own, then tick on “TDS/TCS payable by taxpayer”.
  • If the tax is paid by the taxpayer based on the demand raised by Income Tax Department, then tick on “TDS/TCS Regular assessment (Raised by IT Department)”
  • Nature of Payment: Code as per the section under which TDS/TCS is deducted is to be filled in here. For eg., interest on securities code will be 193 and for the dividend, the code will be 194, etc.

Process for filing TDS Challan 281 Online

  • Login to e-Tax Payment System site link
  • Click on Challan No./ ITNS 281.
  • Fill in the required details such as TAN no., address, mode of payment, bank name, etc. and click on proceed.
  • A confirmation screen will be displayed, check the details entered.
  • Click on “Submit to bank”.
  • It will be redirected to the net-banking site of the bank.
  • Enter the User Id and password provided by the bank for the net-banking purpose.
  • Enter the payment details, i.e. the amount to be paid.
  • Click on submit
  • Your Challan counterfoil will be displayed after the successful payment.

Process for filing TDS Challan 281 Offline

  • Download the excel format of TDS Challan 281
  • Enable editing and content
  • Fill in the required details
  • Take the printout of the challan
  • Submit the challan to the bank along with the amount to be paid
  • After submission of the challan, the bank will issue a  receipt back stamped as a proof of submission.

Payment can be made in cash as well as the cheque. In case payment is made at the branch where the payer has an account and such payment is made in cash/ cheque, the bank shall accept the cash or cheque and will immediately stamp the counterfoil of the Challan with a rubber stamp containing the Challan Identification Number. However, if the payment in the form of cheque/DD is made at any other branch, the collecting bank branch shall accept cheque or draft and issue a paper token in acknowledgment. After this bank will provide the acknowledgment counterfoil duly stamped with the Challan Identification Number.

For any help on ITR Filing feel free to consult the tax experts at LegalRaasta. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business ReturnBulk Return or Revised Return Filing.