When a taxpayer deducts TDS (Tax Deducted at Source), the amount must be deposited with the government through a TDS Challan . Without submitting the challan, the TDS payment is incomplete and may attract penalties. The Income Tax Department has prescribed specific challan forms like Challan 280, Challan 281, and Challan 282 for different types of payments. Among these, ITNS 281 challan is the most widely used for depositing TDS.
A TDS challan is a prescribed form through which taxpayers deposit TDS with the government. It records details like the deductor’s PAN/TAN, assessment year, payment type, and the amount. Without a challan, the TDS deposit cannot be validated.
In simple terms, a TDS challan acts as proof that the deducted tax has been successfully deposited with the government treasury.
There are three major challans relevant for taxpayers and businesses:
ITNS 281 is the standard challan used by businesses and individuals to deposit TDS. It covers payments for:
While filling ITNS 281, the deductor must enter:
Timely payment of TDS using challan is crucial to avoid interest and penalties.
Due Date for Non-Government Assessee:
Due Date for Government Assessee:
Before filing a TDS challan, the deductor must:
The government allows both online and offline TDS payments.
Mistakes in challan details can cause mismatches in Form 26AS. To ensure correctness:
A TDS challan is a vital part of the tax compliance process in India. Among all types, Challan ITNS 281 is the most commonly used for depositing TDS/TCS. Timely payments, correct classification, and accurate challan details ensure smooth compliance and prevent penalties. Businesses and individuals must be vigilant while filing challans to maintain error-free tax records.