We have to deposit taxes on account of TDS on salaries of our employees as well as TDS on interest paid to fixed deposit holders who are individuals and other corporates. Can we combine the three payments in one challan?Is it possible for us to deposit many challans with a single cheque?
- No, you will have to use three separate challans.
The TDS on salaries of employees will have to be deposited with Challan No. ITNS 281 by ticking the box '0021 non-companies' as the TDS pertains to individuals (non-companies). The code 92B will have to be filled up under 'Nature of Payment'. (Codes for 'Nature of Payment' are mentioned behind the challan.)
In respect of interest paid to fixed deposit holders, you will have to first of all segregate the interest payable/paid to companies (Corporates) and non-companies.
For the portion of TDS pertaining to companies, fill up Challan No ITNS 281 and tick box '0020 companies' as the TDS pertains to companies.
For the portion of TDS relating to non-companies, fill up a separate Challan No. ITNS No. 281 and tick box '0021 non-companies' as TDS pertains to non-companies.
Fill up the 'Nature of Payment' as per codes given behind Challan No. ITNS 281. In this case also the code will be 94A.
Please ensure that the bank branch gives you separate acknowledgements with separate Challan Identification Number (CIN) for the three challans deposited by you.
Please note that DIT has now issuing notices where tax has not been deducted as per prescribed TDS rates . Suppose you have deducted tax @ 2 % and deposited the same with the Section 194I ,then you may be in trouble.Computer system will generate diff of TDS amount and you will get demand notice only because of wrong selection of Section .Though this can be addressed by giving proper reply but this may be cause for avoidable problem so please wait a minute before finalizing your TDS depositing and select correct section.
- No, you should deposit separate cheques for each challan.
Whether it is mandatory to make the TDS/TCS payment (Challan 281) online?
- Yes, it is mandatory for below Assessee to make the TDS/TCS payment online
a) All the corporate assesses.
b) All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable.
What should I do if my bank does not have an online payment facility or is not an authorized bank for etax ?
- In case your bank doesnot have an online payment facility or is not an authorized bank then you can make electronic payment of tax from the account of any other person who has an account with the authorized bank having online facility. However, the challan for making such payment must clearly indicate your Permanent Account Number (PAN).