What is a TDS Challan and Its Types That You Should Know?
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.
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What is TDS Challan?
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.
Types of TDS Challan
There are three major challans relevant for taxpayers and businesses:
- TDS Challan 280 – Used for payment of income tax (advance tax, self-assessment tax, and regular assessment tax).
Applicable to individuals, companies, and firms. - TDS Challan 281 – Used for TDS/TCS payments made by companies and non-corporate deductors. This is the most commonly used challan for depositing tax deducted at source.
- TDS Challan 282 – Used for making payments under the Wealth Tax Act, Estate Duty Act, Gift Tax Act, Expenditure Tax Act, and Interest Tax Act.
Challan No. ITNS 281 Explained
ITNS 281 is the standard challan used by businesses and individuals to deposit TDS. It covers payments for:
- TDS deducted by corporates and non-corporates
- Tax Collected at Source (TCS)
- Payments from salary, interest, professional fees, rent, and contract payments
While filling ITNS 281, the deductor must enter:
- Correct TAN (Tax Deduction and Collection Account Number)
- Nature of payment (TDS on salary, interest, commission, etc.)
- Assessment year
- Mode of payment (online or offline)
Due Dates for Filing the TDS Challan Payment
Timely payment of TDS using challan is crucial to avoid interest and penalties.
Due Date for Non-Government Assessee:
- TDS deducted in a month must be deposited by the 7th of the following month.
- For March, the due date is 30th April.
Due Date for Government Assessee:
- If paid without challan: Same day of deduction.
- If paid with challan: 7th of the next month.
Prerequisites for TDS Deduction
Before filing a TDS challan, the deductor must:
- Have a valid TAN issued by the Income Tax Department.
- Ensure correct classification of payment type.
- Maintain updated records of deductees and payment details.
How to Make TDS Payment Online?
The government allows both online and offline TDS payments.
Steps to Initiate TDS Payment by Online Mode
- Visit the NSDL (now Protean) TIN-NSDL website.
- Select Challan ITNS 281.
- Enter TAN, assessment year, and payment details.
- Choose the type of payment (company/non-company, TDS/TCS).
- Proceed to net banking and make payment.
- Generate and save the challan receipt (CIN – Challan Identification Number).
Steps for Offline Challan Process
- Download or collect Challan 281 form from an authorized bank branch.
- Fill in TAN, payment type, and income details.
- Deposit TDS amount in cash/cheque at the branch.
- Collect stamped challan as proof of payment.
How to Download TDS Challan?
- After online payment, challan receipts can be downloaded from the NSDL/Protean portal or net banking account.
- Offline payments provide a stamped physical copy from the bank.
- All challans can be later verified on the TIN portal.
How to Ensure You Have the Correct TDS Challan?
Mistakes in challan details can cause mismatches in Form 26AS. To ensure correctness:
- Payment Classification – Select the right payment type (salary, interest, rent, commission, etc.).
- Classification of Deductees – Choose whether deductee is a company or non-company.
- Interest Implications – Late payment attracts interest @1% per month for delay in deduction and 1.5% per month for delay in deposit.
- TDS Payment Deadlines – Always cross-check due dates before depositing TDS.
Conclusion
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.
I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant.
Frequently Asked Questions (FAQs)
- What is a TDS Challan?A challan is a government-prescribed form used to deposit TDS with the Income Tax Department.
- What are the different types of TDS Challans?Challan 280 (income tax), Challan 281 (TDS/TCS), and Challan 282 (other direct taxes).
- How do I pay TDS online using Challan 281?Visit the NSDL/Protean portal, select Challan ITNS 281, fill details, and make payment via net banking.
- What is the due date for TDS payment for different assessee categories?For non-government deductors – 7th of next month; for government deductors – same day (without challan) or 7th of next month (with challan).
- How can I download my TDS Challan receipt?You can download it from the NSDL portal or net banking account after payment.
- What details are required to fill the TDS Challan Form?TAN, assessment year, payment type, nature of payment, deductee details, and amount.
- What happens if TDS payment is delayed?It attracts interest and penalties for non-compliance.
- Can TDS be paid offline, and how?Yes, by filling Challan 281 at an authorized bank and paying via cash/cheque.
