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ToggleTax deducted at source (TDS) aims to collect tax from the income source. The collector who has to make a specified payment must deduct TDS and remit this amount to the Central Government’s account.
The deductee (from whose payment the TDS is deducted) receives credit for the same amount based on Form 26AS or the TDS certificate issued by the deductor.
The taxes are deducted at the rates specified in the provisions of the Act or the First Schedule to the Finance Act. However, if you are making payments to Non-Resident Indians (NRIs), the withholding tax rates are as per the provisions of the Double Taxation Avoidance Agreements.
The taxes deducted or collected at source must be deposited in the government’s account in either of the following modes.
A TDS challan is used to deposit the TDS amount with the government. It is a single challan used by taxpayers for depositing the taxes collected under the various Income Tax Act, 1961 sections.
If the deductor wants to pay the TDS without a challan, the amount has to be deposited in the government’s account on the same day when it is collected.
It is available on the Income Tax Department’s official website. Using this challan, deductors can pay the TDS amount either online or offline.
Challan 280 is used for payments related to advance tax, regular assessment tax, surcharge, tax on distributed income or profits, and self-assessment tax.
This challan is primarily used by corporate and non-corporate entities for depositing TDS. It is generally collected by the sellers from buyers at the time of selling specified goods. Challan 281 can be filed online or offline, and on making the payment, you receive the Challan Identification Number (CIN).
The CIN is an acknowledgment identifying the tax payment. It is also required while filing the returns and for any further queries that may arise. It comprises three parts, which include the following.
Every payment has a unique CIN and should be stamped by the bank. If there is any error or if the challan does not include the CIN, you must contact the bank immediately to get this rectified.
For TDS challan verification, visit www.tin-nsdl.com, click ‘Challan Status Inquiry’ under ‘Services’, and select either CIN-based view or TAN-based view.
If you choose the CIN-based view, the following details are available.
The banks send all TDS details to NSDL. Moreover, NSDL is not authorized to make any changes to the tax collection data. In case you find any error while checking the OLTAS challan status, you must contact the bank branch where you made the TDS payment.
However, the changes need to be made within a certain time limit. PAN and TAN details can be rectified within seven days from the date on which the challan was deposited.
The rectification due dates vary between seven days and three months for various errors like TDS amount, nature of payment, assessment year, and much more.
The banks can make any modifications to the challans only in certain conditions, which are listed below:
To avoid any errors resulting in corrections, it is recommended you verify all the payment and other details while depositing the TDS amount in the bank. In case of any mistake, ensure you raise the request for correction within the specified time frame.