Use Separate TDS Challan for Separate sections & deductee category

Separate TDS Challan for Separate sections and category of deductee, Correction in Tax/TDS Payment  Challan

1. 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?

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.

2. Can I make income tax payment using the internet?

You can make income tax payment through the internet. This facility is called e-Tax payment. Details of the same are available at NSDL-TIN website and the Income Tax Department website.

3. After depositing the tax at the bank, I have noticed that I have mentioned wrong PAN, or I have received my PAN after making the challan payment. How do I get this incorporated in my challan information?

You should approach your Assessing Officer with an application containing the details of correct PAN and CIN and request him to make the necessary correction.

4. Is it possible for us to deposit many challans with a single cheque?

No, you should deposit separate cheques for each challan.

5. Which are the banks where direct taxes can be paid?

As on date, 32 banks and the Reserve Bank of India (RBI) at 8 centres are collecting taxes through their authorised branches. To check the nearest authorised bank branch, you may contact the bank manager of your bank who will be able to guide you. This information can also be obtained from NSDL-TIN website and the Income Tax Department website.

6. After depositing my tax at the bank, I have noticed that I have mentioned the Assessment Year/Minor Head incorrectly in my challan. Whom do I approach to have this corrected?

You should approach your Assessing Officer with an application containing the details of your PAN and the CIN and request him to carry out the necessary corrections.