For Deductors’ convenience, CPC (TDS) has established processing logic in the system that can accept a Single Challan per month for reporting of Tax Deposited in following circumstances :

Situation 1:

Where Payment of Tax Deducted is required under ‘different sections‘ of the Income Tax Act, 1961:

  • The CPC (TDS) system gives credit of TDS against different sections of the Act, even though a specific section has been quoted in the challan.
  • Example: The challan used for payment of TDS relevant to Section 192 of the Act can also be used for the purpose of reporting tax deposited under Section 194 of the Act also.
Situation prior to Financial Year 2012-13 Consumption of Challan in TDS Statement on the basis of Section quoted in the Challan details
Situation with effect from Financial Year 2012-13 Section quoted in Challan, at the time of depositing Tax deducted/ collected is irrelevant for the purpose of consumption in TDS Statement.

Situation 2:

Where Payment of Tax Deducted is required for “different Assessment Years“:

  • In case tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year. The balance amount if any can be carried forward to the next year for claim in the TDS statement.
  • Example: If excess payment of Tax has been made in Quarter 1 of financial year 2018-19, the same can be used for Quarter 2, 3&4 of F.Y. 2018-19 as well as for Q1 to Q4 of F.Y.2019-20. The excess amount of tax paid in Q1 of F.Y.2018-19 can also be used for payment of tax default of Q1 to Q4 of F.Y.2017-18.

Situation 3:

Where different challans have been used for the purpose of reporting multiple Deductees associated with “different branches with same TAN“:

  • The deductor may have used multiple challans for reporting multiple deductees associated with different branches, in the TDS Statement.
  • A single challan can be used for the purpose of reporting Tax Deducted for such deductees.
  • Example: If a Bank has multiple branches with same TAN, payment of Tax Deducted can be made by a single challan and all the deductees can be tagged using the same.

Based on the above information, you may use a single challan in a month towards payment of Tax Deposited.

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Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

(Republished with Amendments by Team Taxguru)

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13 Comments

  1. Mayuri says:

    what to do when TDS has been less deposited & balance TDS has been deposited in last quarter . how to mention it in RPU ? can multiple challans be use for single payment

  2. Anonymous says:

    While making TDS payment for Q4 of F.Y 2013-14 in the challan it was wrongly mentioned as Asst.Year 2015-16. Is the challan needs to corrected?

  3. shivayogi says:

    TDS CHALLAN-CUM-FORM NO.16A; SUGGESTION. TDS IS TEDIOUS BUT MAY BE FRIENDLY BY WAY OF INTRODUCING TDS CHALLAN-CUM-FORM NO. 16A FOR 194A ETC. TO AVOID MANY PROBLEM. THIS CHALLAN IS VERY USEFULL TO THE INCOME TAX DEPARTMENT AS WELL AS THE DEDUCTOR. BENEFITS 1. NO SEPARATE ISSUE OF FORM NO 16A BY THE TDS DEDUCTOR BY DOWNLOADING THE FORM NO 16A(TWO PAGES) FROM WEBSITE, AS ALL THE DETAILS ARE AVAILABLE IN THIS CHALLAN. 2 THAT ALL THE INFORMATION REQUIRED FOR 26Q ARE ALREADY APPEARED IN THIS CHALLAN HENCE THERE IS NO REQUIREMENT OF FILLING FORM NO 26Q& PREPERATION OF FORM NO 27A. 3. TDS DEDUCTOR WILL SAVE CHARGES OF UPLOAD FEES,FEES OF INCOME TAX PRACTITIONER. 4 NO DIFFICULTIES IN RESPECT OF GETTING CREDIT OF TDS. 5. THAT DUE TO SOFTWARE OR OTHER MISTAKE TDS DETILS ARE NOT APPEARED IN 26AS & THEREFORE TDS OFFICERS ISSUED THOUSANDS OF NOTICES IN RESPECT OF TDS PAYMENT. THIS CHALLAN SERVE ALL THE ISSUES. 6. HUGE WORKLOAD OF INCOME TAX OFFCER(TDS), DEDUCTOR & DEDUCTEE WILL BE REDUCE BY ABOVE CHALLAN BECAUSE THERE WILL BE NO MIS-MATCHING. 7 THAT GOVT. HAS ALREADY MADE ARRANGEMENT FOR 194-IA DEDUCTOR, WHY NOT FOR OTHERS ? 8. GREEN INITIATIVE – LESS CONSUMPTION OF PAPER. – See more at: https://taxguru.in/income-tax/3-tips-making-tds-payment-multiple-challans-month.html#sthash.f182hpuB.dpuf

    ITS GOOD SUGGESTION IT HAS TO APPLY, BECAUSE IN VARIOUS DEPARTMENT ALREADY DONE THE SAME WHY THIS DEPARTMENT IS NOT UPDATED.

  4. DEEPAK KUMAR says:

    Please suggest regarding deduction of TDS in case of salary for 4 to 5 month in financial year 14-15 paid to employees only 50%.
    also, explain if any relief of deduction salary TDS to the companies as well as employees.
    Regards
    Deepak Kumar

  5. CA Hitesh Tatiya says:

    It is observed that TRACES has issued notices for short payment of tax in the case where assessment year is not matched even though CIN is perfect.

  6. hrshadrai says:

    TDS CHALLAN-CUM-FORM NO.16A; SUGGESTION. TDS IS TEDIOUS BUT MAY BE FRIENDLY BY WAY OF INTRODUCING TDS CHALLAN-CUM-FORM NO. 16A FOR 194A ETC. TO AVOID MANY PROBLEM. THIS CHALLAN IS VERY USEFULL TO THE INCOME TAX DEPARTMENT AS WELL AS THE DEDUCTOR. BENEFITS 1. NO SEPARATE ISSUE OF FORM NO 16A BY THE TDS DEDUCTOR BY DOWNLOADING THE FORM NO 16A(TWO PAGES) FROM WEBSITE, AS ALL THE DETAILS ARE AVAILABLE IN THIS CHALLAN. 2 THAT ALL THE INFORMATION REQUIRED FOR 26Q ARE ALREADY APPEARED IN THIS CHALLAN HENCE THERE IS NO REQUIREMENT OF FILLING FORM NO 26Q& PREPERATION OF FORM NO 27A. 3. TDS DEDUCTOR WILL SAVE CHARGES OF UPLOAD FEES,FEES OF INCOME TAX PRACTITIONER. 4 NO DIFFICULTIES IN RESPECT OF GETTING CREDIT OF TDS. 5. THAT DUE TO SOFTWARE OR OTHER MISTAKE TDS DETILS ARE NOT APPEARED IN 26AS & THEREFORE TDS OFFICERS ISSUED THOUSANDS OF NOTICES IN RESPECT OF TDS PAYMENT. THIS CHALLAN SERVE ALL THE ISSUES. 6. HUGE WORKLOAD OF INCOME TAX OFFCER(TDS), DEDUCTOR & DEDUCTEE WILL BE REDUCE BY ABOVE CHALLAN BECAUSE THERE WILL BE NO MIS-MATCHING. 7 THAT GOVT. HAS ALREADY MADE ARRANGEMENT FOR 194-IA DEDUCTOR, WHY NOT FOR OTHERS ? 8. GREEN INITIATIVE – LESS CONSUMPTION OF PAPER.

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