Tax* Deducted At Source (TDS) is one of the method of collecting the tax from the source of the income. Therefore, an individual or business entity liable to make payments such as salary, interests etc., will collect the applicable tax before making the payment. It is defined based on a certain percentage of the full payment.
 

Furthermore, the person collecting the tax using the TDS concept will have to deposit the amount with the Income Tax Department. The TDS challan is used to deposit the income tax to the account of the Central Government. Let us understand the TDS challan, the different types and usage procedures.
 

What is a TDS Challan?

 

TDS Challan is used to deposit the Tax Deducted At Source or the Tax Collected At Source with the Government. The Government of India introduced the income tax TDS challan to reduce human error and facilitate the online transactions for the TDS deposit, collection and refund process. There are three most important challans: Challan no. 280,281, and 282.
 

• Challan 280 comes into use for depositing the income tax.
• Challan 281 is used for depositing TDS (Tax Deducted At Source) and TCS (Tax Collected At Source).
• Challan 282 is used for depositing wealth tax, security tax, gift tax, etc.

 

TDS Challan 280

The challan 280 is used by the taxpayers to make the respective income tax payments online or offline. The online form is available on the official website of the Income Tax Department. The taxpayers can use it to make payments such as the Advance Tax, Regular Assessment Tax, Surcharge, Tax on Distributed Profits or Income and Self-Assessment Tax. However, it does not apply to salaried individuals whose taxes are deducted at the source.

The challan 280 is also available online. The respective taxpayers must fill in the details and use the form to pay the income tax further online or offline.

Online Method Of Using The Challan 280

The entire tax-paying process becomes hassle-free using the challan 280 online method. Here is a detail about the steps that need to be followed.
 

1. Log on to the official website of the Income Tax Department and choose Challan No. 280.
2. Choose the Income Tax Other Than Companies option if the taxpayer is an individual.
3. Provide the necessary details such as assessment year, PAN, address, email ID and mobile number.
4. Choose the type of tax: Advance Tax, Self-Assessment Tax, Tax on Regular Assessment, Tax on Distributed Profit or Income.
5. Choose the respective bank for making the TDS online payment.
6. Click on proceed to provide the income tax amount and other bank details to make the payment successfully.
7. The acknowledgement will be made available to the taxpayer on their respective email ID.
    

Offline Method of using Challan 280

If the taxpayer is not comfortable making the income tax payment using the online method, they can always choose to complete the process offline. Here is a detail about the steps:
 

1. Download the challan 280 form online from the official website of the Income Tax Department. TDS challan download is a simple process and does not require much time.
2. Fill in the details such as PAN, address, assessment year, email-ID, mobile number, etc.,
3. Visit the bank directly with this filled form and the payable income tax amount and process the payment.

 

Based on Section 80C of the Income Tax Act, 1961, a taxpayer can claim upto ₹1.5 Lakh as a tax deduction. For example, when you purchase life insurance policies, the premium you pay and the payouts you receive will be applicable for a tax deduction and exemption benefit. Insurance providers have been offering a range of life insurance online solutions to make the purchase and customisation simple and hassle-free. For instance, our Tata AIA policy provides online solutions that allow you to pay the premium online for a limited term, increase the sum assured at different stages, opt for the regular income option, etc.
 

TDS Challan 281

TDS Challan is the TDS deposit challan used for depositing the TDS or the TCS by the corporates or non-corporate entities. The taxpayers can process the payment through offline or online methods. Here are a few important pointers regarding the TDS challan payment.
 

1. Accumulate the TDS amount and segregate it depending on the payment type and the deductee.
2. Calculate the applicable interest, if any.
3. Prepare the TDS challan 281.
4. Ensure to provide the correct TAN (Tax Deduction and Collection Account Number).
5. Deposit the payment online or offline.
6. On successful processing of the payments, the Challan Identification Number (CIN) information will be provided to the taxpayer.
    

The steps required to make the payments based on TDS challan 281 are as follows.
 

1. Visit the official website of the Income Tax Department to make the payment for challan 281 online.
2. Select challan number 281.
3. Provide the necessary details such as name, assessment year, etc.,
4. Provide the correct Tax Deduction Account Number.
5. Choose the type and mode of payment and make the required transactions using the online net banking facility.
    

TDS Challan 282

The challan 282 is used to deposit the gift tax, expenditure tax, estate tax, and other types of miscellaneous taxes. The respective forms based on the type of tax are available online. Therefore, the taxpayer has to visit the Income Tax Department's official website, choose the appropriate form, provide the necessary details, and make the payments accordingly.
 

How to Check Status of TDS Challan Online?

Once you have made the necessary TDS challan payments, you can check the TDS challan status online at any time.
 

1. Visit the official website - Tax Information Network of Income Tax Department, TIN NSDL portal.
2. Click on the 'Services' tab.
3. Further, choose the OLTAS (Online Tax Accounting System) option.
4. On the left-hand corner, choose the 'Challan Status Inquiry' tab.
5. You will be redirected to a page that provides the option for taxpayers and banks to view the status.
6. Choose the respective option and provide the details regarding your challan, such as the CIN, to track the status of TDS challan.
    

Conclusion

TDS challans have made income tax payments easier for the taxpayers and maintenance of the fund processes for the Income Tax Department. With the advancement in technology, making the TDS challans have been made simpler online. The TDS challans 280, 281 and 282 are the most important. The challan 280 is for income tax payments; challan 281 is for TDS and TCS, and challan 282 is for miscellaneous tax payments such as gift tax, estate tax, etc. Therefore, it is important to understand these different types of challans and use the online system best to process the necessary transactions.

L&C/Advt/2022/Sep/2297