TDS Challan ITNS 281 - Download and Payment Online
Both corporate and non-corporate entities use challan 281 to deposit TDS and TCS. TDS, or tax deducted at source, is a government-instituted mechanism whereby the person (deductor), prior to making a payment of a particular nature (such as a salary, rent, etc.) to the payee (deductee), shall deduct tax from such an amount payable at a specified percentage and deposit it to the Income Tax Department. The tax that the seller collects from the purchaser at the time of the sale of particular goods is known as TCS, or Tax Collected at Source.
What is Challan 281?
TDS Challan 281 is a challan form issued by the Income tax department. It is used by employers to pay Tax deducted at source (TDS) to the government. Businesses must deduct TDS prior to paying income to an individual or entity, per the Income Tax Act of 1961. For instance, if a business pays a contractor Rs. 1.5 lakh, it must first deduct Rs. 15,000 (10% TDS) and then pay a net amount of Rs.1,35000.
History of Challan ITNS 281
Online Tax Accounting System replaced the manual process of collecting taxes in 2004. (OLTAS). It was implemented with the goal of minimising human involvement, which would reduce errors and make it easier to transmit information about taxes that were collected, deposited, refunded, etc. online. A single copy of a Challan is issued by OLTAS, and taxpayers can check the status of their paper or electronic Challans that have been deposited in banks online.
Three different kinds of challans are issued:
1. | Income Tax Deposit (includes advance tax, self-assessment tax, tax on regular assessment) | |
2. | Challan ITNS 281 | Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) deposits |
3. | Challan ITNS 282 | Wealth tax, gift tax, Securities Transaction Tax (STT), and other direct taxes |
Challan ITNS 281 Compliances
When the taxpayer deposits the TDS and TCS, Challan ITNS 281 is generated. It must therefore adhere to the guidelines and deadlines established for withholding and depositing tax. If you are late with your tax deposit, you will be charged interest at a rate of 1.5% per month, or part of a month, starting from the date of deduction.
Due dates for payment of TDS are listed below:
TDS | Deadline |
TDS is deducted from payments (aside from the purchase of property) | seventh day of the following month |
TDS is deducted on a property purchase | 30th of the following month |
TDS withheld during the month of March | April 30 |
What is Challan Identification Number?
A special number called a "Challan Identification Number," or CIN is given out to confirm tax payment. It consists of three parts: the 7-digit BSR code of the bank branch where the tax is deposited, the date on which the tax was deposited (in the format DD/MM/YY), and the serial number of the challan. Following the encashment of the check, the bank must provide the acknowledgement counterfoil properly stamped with the Challan Identification Number when this token is presented at the branch.
Cash and checks are both acceptable forms of payment. If a payment is made in cash or a check at the branch where the payer has an account, the bank must accept the payment and will stamp the counterfoil of the challan as soon as possible with a rubber stamp that includes the challan identification number. The collecting bank branch must accept a check or draught and provide a paper token as acknowledgement if the payment is made at any other branch.
Important Factors to Take into Account Prior to Filing TDS Challan 281
- To submit a TDS Challan 281, you will require a TAN number.
- You must submit Form 49B in order to obtain TAN.
- Verifying the TAN is necessary prior to depositing the challan.
- When depositing TDS, corporate and non-corporate deductees shouldn't use the same challans.
- A fine of Rs.10,000 will be applied if don’t have your TAN verified.
- For the purpose of filing TDS challan 281 offline, it is crucial to obtain a challan certificate with the CIN number.
- The financial year comes after the assessment year, for which you are filing. Calculating your income from the previous year is essential for filing TDS Challan 281.
- The back of TDS challan 281 typically has codes for various TDS challans. When depositing challans under various sections, it is critical to be aware of these sections.
How to File Challan 281?
There are two ways to file Challan 281 via offline and online and follows respectively:
How to File a Challan 281 Offline?
You can file your TDS Challan 281 offline by following the instructions given below:
- Step 1: Download the TDS challan in excel format.
- Step 2: Complete the necessary information
- Step 3: Take the challan printout with you.
- Step 4: The taxpayer can pay the amount using the offline method by going to the bank in person and submitting a challan.
- Step 5: You can use either of the two payment options: cash or cheque.
- Step 6: The bank will provide a counterfoil receipt back-stamped as proof of submission upon receipt of the challan with a unique Challan Identification Number (CIN).
Challan no ITNS 281 Form
Category | Information |
Payment details | Enter the payment information such as surcharge or income tax amount in words. Fill in details of the cheque or demand draft such as the date and the branch. |
Nature of Payment | This field must be filled out according to the section under which TDS/TCS is deducted. The use of distinct challans for payments under various sections should be ensured. For instance, distinct challans should be created specifying different codes for every type of payment if the payment is to be done for dividend and interest on securities. For instance, the code will be 193 for interest on securities, 194 for dividends, etc. |
Payment type | Select 'TDS/TCS payable by a taxpayer if the taxpayer pays the tax on a monthly basis on his own.Select 'TDS/TCS regular assessment (Raised by IT Department)' if the tax is paid by the taxpayer in accordance with the demand made by the Income Tax Department. |
Name, address, and TAN No | Type in your company name and Tax Deduction and Collection Account Number (TAN) which is a special 10-digit alphanumeric number given to individuals who are required by the Income Tax Act of 1961 to withhold or collect tax from payments they make or receive. If you submit a challan online, the confirmation screen will automatically capture your name from the Income Tax Department database based on the TAN number you entered. |
Assessment year | The year in which tax is due in relation to income earned the prior year is known as the assessment year. The assessment year is the year following the prior year. |
Tax Applicable | It must be ensured that distinct challans are used for corporate and non-corporate deducteesand that the appropriate codes are chosen. You need to fill 0020 for income taxes paid by corporations. The entity's PAN number can be used to determine whether it is a company or not; in the case of a company, the fourth letter of the PAN number must be "C."If you are an individual, partnership firm, HUF, etc., then fill in 0021. It applies to income tax for entities other than companies. |
How to File a Challan 281 Online?
Follow the instructions given below to file your TDS challan 281 online:
Step 1: Open the e-Tax Payment System page
Step 2: Select Challan No./ITNS 281
Step 3: Enter the necessary information, such as your TAN number, address, payment method, bank name, etc., and then click ‘Proceed’
Step 4: The confirmation screen will appear; review the information you entered
Step 5: Simply press ‘Submit to bank’
Step 6: It will be forwarded to the bank's online banking page
Step 7: To use net banking, enter the user ID and password provided by the bank
Step 8: Enter the payment information, including the total to be paid
Step 9: Select ‘Submit’
Step 10: When an electronic payment is made successfully, a challan counterfoil with the CIN number, payment information, and bank name will be displayed
How to Check the Status of a Challan Online
On the Tax Information Network website, it is possible to check the online status of challans that have been deposited. Banks and taxpayers both have the option to conduct the inquiry. According to the type of view, the taxpayer must enter the information listed below:
CIN-Based view | TAN-based view |
BSR Code of collecting branch | - |
Challan Serial No. | Tax Deduction/ Collection Account No. (TAN) |
Challan Tender Date (Cheque/cash deposit date) | Challan Tender Date/ Date of Deposit (Period) |
Amount (Optional) | - |
The collecting and nodal branch will require the following information: OLTAS user id and password, Nodal or Branch scroll date, and Major Head Code description.
Information accessible through the challan status inquiry
Taxpayers can check the following on their challans | Banks can check the following on the challans |
CIN based view:
| Collecting Bank Branch:
|
TAN based view:
| Nodal Bank Branch:
Information that can be accessed for each Nodal Branch Scroll Number includes the following:
|
FAQs on TDS Challan 281
- What is Challan Identification Number?
The Challan Identification Number, or CIN, is a special number given out to confirm tax payment. It has three components: the 7-digit BSR code of the bank branch where the tax is deposited, the date the tax was deposited (in the format DD/MM/YY), and the challan's serial number.
- What is Tax Deduction and Collection Account Number?
The Income Tax Department Issues Tax Deduction and Collection Account Number, or TAN which is a 10-digit alphanumeric number, to individuals who have to pay taxes according to the Indian Income Tax Act of 1961.
- Is it possible to submit Challan 281 without a TAN?
No, you would require a TAN number in order to submit TDS returns using Challan 281 in accordance with Section 203 of the Income Tax Act of 1961.
- What information can be found on a TDS challan 281 with a CIN acknowledgement stamp?
You can find the name of the branch, date of deposit, serial number, and BSR number on the TDS challan with the acknowledgement stamp bearing CIN.
- How can a salaried person find out the details of their TDS Challan?
If you are a salaried employee, you can request a TDS Challan certificate from your employer. You can also go to the Income Tax department's website and look for Form 26AS under the 'view your tax credit' tab.
- What is TDS 281 challan?
Challan is issued for depositing Tax Deducted at Source (TDS) and Tax Collected at Source (TCS).
- Can cash be used to pay the TDS?
Yes, you can pay TDS using cash. The income tax department also accepts checks, net banking, and debit cards as forms of payment.
- Can you use one check to deposit multiple TDS challans?
No. Each challan must be deposited with a different check.
- What fees apply to late TDS payments?
Penalties in the form of additional interest payments result from late TDS payments and the filing of TDS returns. If there is a delay in your TDS deduction, you will be charged 1% of the TDS per month. If you deposit your TDS late then 1.5% of the deducted TDS per month. For any delays in filing TDS returns, you will have to pay Rs.200 per day, up to the actual TDS amount. Additionally, if the delay lasts for a year or longer, the fine may range from Rs.10,000 to Rs.1 lakh.5.
- What distinguishes TDS challan 281 from challan 280?
For the payment of income tax, wealth tax, and corporate tax, you should use TDS challan number 280. While TDS Challan 281 is used for both TDS and TCS.
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