Income Tax form 281 is a document that serves as evidence that the tax* has been paid to the government. The income tax* rule requires businesses to deduct tax* deductions at source (TDS) before distributing income to entities or individuals.
 

The company will then deposit the TDS with the government via ITNS 281 challan.
  

Why Did the Government Introduce the 281 Challan and OLTAS(Online Tax Accounting System)?
 

Prior to 2004, all businesses were required to deposit the TDS in person at the bank, which was a time-consuming process. The scenario resulted in numerous human errors and cases of payments being delayed or skipped. Thus, the Income Tax Department has implemented OLTAS, or Online Tax Accounting System, to streamline the entire process and eliminate inefficiency.
 

How to Submit Challan 281 Online?
 

Filling out the TDS payment 281 challan online is a simple process you can do from the comfort of your own home; here's how.
 

1. Go to the NSDL portal, navigate to the "Challan No. /ITNS 281", and click on the same.
2. Select the type of deductee for whom you are making a payment. A deductee can be a corporation or an individual.
3. Select a payment method from the category below.
   
   
   • TDS or TCS payable amount by a taxpayer
   • TDS or TCS regular assessment
   
   In addition, select an online payment method such as net banking or debit card.
   
   
4. Choose "Assessment Year" and "Tax Deduction Account Number" from the drop-down menu.
   
5. share your personal details such as e-mail id, city, residential pin code, etc. After that, type the captcha code and click on the "Proceed". 
    

After completing the preceding steps, you will be then redirected to the bank portal. Following the completion of the transaction, the screen will display a challan reference number. This number must be saved for future use.
 

How to Submit Income Tax Challan 281 Offline? 
 

To submit TDS challan 281, you need to follow the steps detailed below.
 

1. Compute your total TDS payable after considering the type of deductive and the payment made. Include any applicable interest rates.
2. Visit the NSDL portal to download TDS challan 281 in PDF format. 
3. Take a printout of the challan and fill out all the required information. If you are filling out this form for the first time and unsure about filling the same, consult the instructions below.
   
   
   • Share details such as contact information, TAN number, address, and type of payment.
   • Mention the deductees' information, which can be either an individual or a company.
   • Share payment information, including the penalty, surcharge, and income tax*.
   • Write down the total payable amount, bank details, cheque number, and assessment year.
      
4. Visit your bank in person, submit the challan, and pay the TDS.
5. After making the payment, the bank will provide you a payment receipt that you must keep for future reference.

How to Check the Status of Challan 281?
 

As a taxpayer, you can check your TDS challan status by visiting the NSDL's official website. You can view your status by either choosing a CIN or a TAN-based view. 
 

CIN-based view:
 

1. Visit TIN-NSDL's official portal.
2. Navigate to the" Services" tab and tap on the "OLTAS".
3. Tap on "‘Challan Status Inquiry".
4. After that, under " For Taxpayers", click on "CIN Based View".
5. Share BSR code, challan serial number, and challan tender date.
6. Input the captcha code and hit the " View" tab to check the status.
    

TAN-based view:
 

1. The first two steps will be similar to the CIN-based view. 
2. Under " For Taxpayers", click on "TAN Based View".
3. Share the TAN number, challan date, and challan number.
4. Enter the captcha and tap "View" to view the status.
    

Challan 281 Payment Rules
 

As a responsible taxpayer citizen of the country, you must keep certain pointers in mind when filing TDS challan 281. These are: 
 

• Tax compliance
  
  You must always pay your TDS on or before the due date. The TDS filing rules for government and non-government taxpayers are as follows.
  
  
  • Government taxpayers:
    
    As a government taxpayer, you must pay your TDS on the same day that your tax was deducted at the source. You are subject to this condition if you intend to pay your TDS without a challan. In case the TDS is to be paid by challan, the due date for TDS filing  is the 7th day of the following month in a given assessment year.
    
    
  • Non-government taxpayers:
    
    If you are a non-government taxpayer, make sure you pay your March taxes by 30th April. In the case of any other month, you must pay the TDS by the 7th of the next month.
    
    
  • Non-tax compliance
    
    If you do not adhere to the above rules, you will be levied a monthly penalty of 1.5%. In some cases, the penalty is calculated based on the portion of the month following the deduction date for late payment.
     

  Conclusion
   

  TDS deposit via challan 281 is a legal process that you must strictly follow as a business owner. Failure to comply with the TDS payment rule can result in a hefty penalty as well as other legal ramifications. If you are looking for the right insurance plan to protect yourself and your loved ones while saving on tax*, you should check out the Tata AIA Life Insurance plans. You can choose the plan that you think is suitable for you.

  
  L&C/Advt/2022/Oct/2580