Advisory to deductors making TDS payment through multiple challans in a month
As we all are aware that, many times deductors used to pay TDS through multiple challans because of different section under which TDS deducted or the year of two payments are different or there are different deductees. This multiple payment challan is really tedious process. Hence for Deductor’s convenience, CPC(TDS) has established processing logic in the system that can accept a Single Challan for reporting of Tax Deposited in following circumstances :
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.
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 2013-14, the same can be used for Quarter 2,3&4 of F.Y. 2013-14 as well as for Q1 to Q4 of F.Y.2014-15. The excess amount of tax paid in Q1 of F.Y.2013-14 can also be used for payment of tax default of Q1 to Q4 of F.Y.2012-13.
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.
Related Post / Analysis – Use of single TDS challan for all purposes-Analysis
Republished with Amendments