TDS Payment Challan/Challan 281 is the challan for payment of TDS by companies as well as Individuals. TDS is the mechanism introduced by the government in which tax is deducted at source in the specified cases while making payment by the deductor at a specified rate and then it is payable to the Income Tax Department.

Due date for filing TDS Payment Challan

The due date for filing TDS payment challan after deducting the TDS is:

 In case of Non-Government Assessee

  • Tax for the month of March – 30th April
  • Tax for any other month – 7th Day of the next month

 In case of Government Assessee

  • In case the tax has to be deposited without challan – Same Day
  • In case the tax has to be deposited with challan – 7th Day of the next month

Process for filing TDS Payment Challan

Process to file Challan 281 Online

1. Open the e tax payment system website and select then Challan 281.

2. Fill in the following details:

  • Tax Deduction Account Number
  • Assessment Year
  • Full Name will be auto populated as per Income Tax Department database.
  • Now, fill in your address, email ID, Phone Number Etc.

tds payment challan

3. After filling the above details, Select the Type of Payment, Nature of the payment and pay through Internet Banking or Debit card.tds payment challan

4. After the payment is successful, Challan counterfoil will be displayed.

Process to file Challan 281 Offline

1. Download the format of TDS Challan 281

2. Fill in the following details:

  • TAN Number
  • Assessment Year
  • Full Name
  • Now fill in the type of payment and the other details of payment. It may be noted that while filling in the type of payment in case of Offline Challan 281, you have to enter the code of the payment also which are later discussed in this article.

3. Take the printout of the challan 281.

4. After filling the details, the challan has to be submitted to the bank along with the payment of the Tax.

5. After submission of the challan with the bank, a receipt will be issued by the bank as a proof. It will have the Challan Identification Number.

Specimen of the Offline Challan 281

tds payment challan

Details of the Nature of Payment

The details of the nature of payment is one of the most important aspects of filing Challan 281. In the case of online payment, it will be displayed by clicking on the option of “Nature of Payment” and in the case of offline payment of Challan 281, the details of the Nature of Payment has to be filled including the Code Number.

Section Nature of Payment Code
192 Payment to Govt. Employees other than Union Government Employees 92A
192 Payment of Employees other than Govt. Employees 92B
193 Interest on securities 193
194 Dividend 194
194A Interest other than interest on securities 94A
194B Winnings from lotteries and crossword puzzles 94B
194BB Winnings from horse race 4BB
194C Payment of contractors and sub-contractors 94C
194D Insurance Commission 94D
194E Payments to non-resident Sportsmen/Sport Associations 94E
194EE Payments in respect of Deposits under National Savings Schemes 4EE
194F Payments on account of Re-purchase of Units by Mutual Funds or UTI 94F
194G Commission, prize etc., on sale of Lottery tickets 94G
194H Commission or Brokerage 94H
194I Rent 94I
194J Fees for Professional or Technical Services 94J
194K Income payable to a resident assessee in respect of Units of a specified Mutual Fund or of the Units of the UTI 94K
194LA Payment of Compensation on acquisition of certain immovable property 94L
195 Other sums payable to a non-resident 195
196A Income in respect of units of Non-Residents 96A
196B Payments in respect of Units to an Offshore Fund 96B
196C Income from foreign Currency Bonds or shares of Indian Company payable to Non-Resident 96C
196D Income of foreign institutional investors from securities 96D
206C Collection at source from Alcoholic Liquor for Human Consumption 6CA
206C Collection at source from Timber obtained under Forest lease 6CB
206C Collection at source from Timber obtained by any Mode other than a Forest Lease 6CC
206C Collection at source from any other Forest Produce (not being Tendu Leaves) 6CD
206C Collection at source from Scrap 6CE
206C Collection at source from contractors or licensee or lease relating to Parking lots 6CF
206C Collection at source from contractors or licensee or lease relating to toll Plaza 6CG
206C Collection at source from contractors or licensee or lease relating to mine or quarry 6CH
206C Collection at source from tendu leaves 6CI

Penalty

If TDS has been deducted by the deductor but it has not been paid to the Income Tax Department within the specified time then interest at the rate of 1.5% per month on the TDS amount has to be paid.

In case you are confused about TDS Return Filing as a deductor, feel free to consult the experts at LegalRaasta. You can get comprehensive assistance with our TDS Return Filing Software which supports TDS on Salary payments Form24Q, Rent, Interest, Commission and other Non-salary transactions (Form 26Q), NRI (Form 27Q) and TCS Form27EQ.