The blog discusses tds, tds challan, and different types of tds challans. it also explains the procedure of filing a tds challan and the necessary steps to be followed for making a correct tds challan payment/salaried tds challan.
TDS Challan is a crucial document used for remitting the deducted tax to the government. Tax Deducted at Source or TDS is the process managed by the Central Board of Direct Taxes and the Department of Revenue under the aegis of the Indian Revenue Service. Following this process, the deductor deducts a specified share of income earned by any individual (deductee) during a financial year in the form of tax. Following that, it remits that deducted amount to the account of the Central Government of India. It is important to remember that while calculating an individual’s actual income during a particular financial year- any form of earnings, including dividends, capital gain, income from immovable asset sales, etc., during that specified time will be considered. And based on that amount, a tax calculation and tax deduction will be carried out. Know how TDS is deducted from salary and TDS Challan 281 Payment
What Is TDS Challan Payment?
TDS (Tax Deducted at Source) Challan Payment refers to the process of remitting the tax deducted at the source to the government by an individual or entity responsible for deducting TDS. When making certain payments such as salaries, professional fees, rent, or interest, the payer deducts a specific percentage of tax from the payment and is required to deposit it with the government within the prescribed due dates. The TDS challan serves as a payment voucher or receipt for remitting the deducted tax to authorized banks or through online modes. It contains essential details such as the taxpayer’s name, TAN (Tax Deduction and Collection Account Number), assessment year, type of payment, and the amount deposited. The Tax Deducted at Source challan payment ensures the timely transfer of the deducted tax to the government and helps in fulfilling the tax obligations under the TDS provisions.
About Salaried Individual TDS Challan?
Tax Deducted at Source challan is a documentary form issued by the Income Tax department. It needs to be filled and submitted to deposit the TDS amount deducted on behalf of the Income Tax Department. Tax Deducted at Source Challan was launched in the year 2004. The motto for introducing the Tax Deducted at Source challan was to reduce the chance of human error, assist and simplify the process of online transactions related to tax deposition and tax collection, and make the TDS refund process faster and hassle-free. It is very easy to track the TDS status. Thus, now the filing and following up process has become much more efficient and transparent.
Types of TDS Challan
There are mainly three Tax Deducted at Source challan – TDS Challan 280, TDS Challan 281, and 282. One needs to understand the difference between these three types of Tax Deducted at Source challan, which offer different utilities and serve three different purposes.
- TDS Challan 280 – This form is used essentially to deposit income tax.
- TDS 281 Challan – This form is used essentially for TDS and TCS.
- TDS Challan 282 – This form is used to deposit wealth tax/gift tax/ security or transaction tax and similar miscellaneous taxes.
Apart from these, three additional Tax Deducted at Source challan was also introduced.
- TDS 283 Challan – This form is used for the payments for Banking Cash Transaction Tax and Fringe Benefits Tax.
- TDS 286 Challan – This form is used for the payments requiring the declaration of income.
- TDS 287 Challan – This form contains payments under Pradhan Mantri Garib Kalyan Yojana payments.
Important Dates to Remember for Depositing TDS 281 Challan
- Tax Deducted at Source Challan for payments that do not include property purchase –7th of every following month.
- TDS Challan in case of property purchase –30th of every following month.
- Tax Deducted at Source Payment Challan 281 is issued between March –April 30.
If there is a delay in TDS payment challan 281, a 1.5% per month interest rate is charged.
Procedure for Filing a Salaried Individual TDS Challan?
Step 1: Visit Tax Information Network (NSDL website), which the income tax Department powers
Step 2: Select the tab ‘Services’, and from the dropdown options, choose OTLAS (Online Tax Accounting System)
Step 3: This will take you to OTLAS-Challan Status Inquiry Page.
Step 4: This will allow you to download your requisite copy of the Tax Deducted at Source Challan.
What is the Procedure for Checking the Status of the TDS Challan?
Step 1: Visit Tax Information Network (NSDL website), which the income tax Department powers
Step 2: Select the tab ‘Services’, and from the dropdown options, choose OTLAS (Online Tax Accounting System)
Step 3: This will take you to OTLAS-Challan Status Inquiry Page. This will have two separate sections for i) the taxpayer and ii) the bank.
Step 4: Choosing the taxpayer checkbox will give you two options for checking the challan status– i)CIN based or ii) TAN based.
i)For CIN Based Tax Deducted at Source Challan Status Enquiry
You will need to fill up the details provided by the counterfoil you have received for the online payment towards Challan 281. CIN stamp will have the details of the BSR branch code for your collecting branch. It will also have the taxpayer’s name, tax deposit date, Tax Deducted at Source challan serial number, PAN/TAN details, challan 281 tender dates, and the amount paid for the Tax Deducted at Source challan.
After filling in these details on the CIN-based Tax Deducted at Source Challan status, click for inquiry. The page will show you the detailed reports.
ii) TAN Based TDS Challan Status Enquiry- you need to fill up your TAN number, date of Tax Deducted at Source Challan deposit, and mention the duration of time for which you want to know the status. After completing filling up the form, you can download the details regarding the status of your TDS Challan.
How to Make a Correct TDS Challan Payment?
- To undertake the correct TDS challan payment, you must correctly compute your total earnings during that financial year. You must remember to include your bonus, commission, and other additional payments or rewards.
- You need to provide the proof of investment at the end of each year to your employer.
- Your employer will compute TDS: https://incometaxindia.gov.in/Pages/Deposit_TDS_TCS.aspx based on your income slabs. For that, he will take into consideration your net taxable income.
- You should always deposit your TDS collection with the central government within the specified time to prevent paying penalties.
Conclusion
At the end of each financial year, every taxpayer in the country needs to evaluate if they have any kind of advance tax liability due. If you have a taxable income, you are liable to pay the income tax on your total income earned according to the provisions of the Indian Income Tax Act of 1961. This tax gets directly paid to the Central Government of India through varied modes like TCS (Tax Collected at Source), TD (Tax Deducted at Source), Self-assessment Tax and Advance Tax. We hope this article will help you to understand the knick-knacks of Tax Deducted at Source challan and how it works in the country. Keep this blog handy for your future perusal.
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