Tax deducted at source or TDS is a form of indirect tax managed by the Central Board of Indirect Taxes. Under TDS, the person responsible to make certain specific payments like salary, interest, commission, rent, etc. is liable to deduct a certain percentage (as specified) of tax before making the full payment to the other party. Every person liable to deduct TDS under the Income Tax Act is also liable to deposit this TDS amount to the Income Tax Department.
Due dates for depositing TDS
The TDS collected by a payer for any month has to be deposited with the government by the 7th of the succeeding month, but for March, it shall be 30th April. For all the TDS collected and deposited, a statement has to be submitted on a quarterly basis after which a TDS certificate shall be issued to the payee. A ‘TDS challan’ shall be used for depositing the TDS with the government. A single challan can be used to deposit tax collected under various sections of the Income Tax Act. If the government wants or the assessee wishes to pay TDS without using a challan, the due date for depositing TDS shall be the same day on which the TDS was collected.
TDS Challan 281
This challan is used for depositing TDS or Tax Collected at Source (TCS) by Corporates as well as Non-corporate entities. TCS or TDS is collected by the seller from the buyer at the time of sale of specified goods. Taxpayers can file TDS Challan 281 online or offline. Challan Identification Number (CIN) is issued when the payment is done online or through some mode offered by the bank.
TDS Challan 280
Income Tax payments for Advance Tax, Self-Assessment Tax, Surcharge, Regular Assessment Tax, Tax on Distributed Profits or Income and others can be done through Challan 280. This form of challan can be paid in two ways – online or offline. Payment for Income Tax and Corporation Tax requires Challan No./ITNS 280, irrespective of the mode opted by the individual. Hence, it should be paid by the depositor.
Pre-requisites for deducting TDS
Every person responsible for deducting tax at source shall get Tax Deduction and Collection Account Number (TAN). One can get a 10-digit alpha-numeric number on depositing Form No. 49 B, available on the NSDL website, along with the specified fee. A failure to quote TAN on all communications relating to TDS with the Income Tax Department would attract a penalty of Rs. 10,000 for all assessees liable to deduct TDS.
Taxpayers can follow the below mentioned steps for online payment of TDS through the applicable Challan:
Step 1: Login to http://www.tin-nsdl.com
Step 2: Select the relevant challan i.e. ITNS 280, ITNS 281, and others
Step 3: Enter PAN/TAN (as applicable) and other required details
Step 4: A confirmation screen will be displayed after submitting the data. If PAN/TAN is valid according to the ITD PAN/TAN master, full name of the taxpayer as per the master will appear on the screen
Step 5: Once the details are confirmed, the taxpayer will be guided to the net-banking site of the bank
Step 6: The taxpayer needs to login to the net-banking site with the user id/password provided by the bank. Enter the payment details
Step 7: Once the payment is done, a challan counterfoil will appear with CIN, payment details and bank name through which e-payment has been made. This counterfoil is the proof of the payment.
How to check TDS Challan Status
Taxpayers can easily check TDS challan status online. Below mentioned are simple steps to do so:
Step 1: Visit the TIN-NSDL website https://tin.tin.nsdl.com/oltas/index.html
Step 2: Select either CIN (Challan Identification Number) based view or TAN based view
Step 3: Fill in the required details to view the Status
Step 4: Tax Deductors may also download the Challan Details file for a selected period through TAN based view, which can help verify the Challan entries filled in the e-TDS/TCS Statement.