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 per month for reporting of Tax Deposited in following circumstances:

  • Payment of Tax Deducted under different sections of the Income Tax Act, 1961
  • Payment of Tax Deducted for different Assessment Years:
  • Different challans used for the purpose of reporting multiple Deductees associated with different branches with same TAN:

Analysis of the CPC Communication:

1. Payment of Tax Deducted under different sections of the Income Tax Act, 1961

From FY 2012-13 onwards the Section Code quoted in the challan for payment of Tax deducted is no more relevant.

Deductor can quote any Section Code on the challan for payment of TDS under other codes also. There will be no challan mismatch and no consequent tds demands in this case.

Since, the section code is no more relevant therefore CPC (TDS) has introduced a system where a single challan can be used for payment of TDS under different section codes.

Single Challan can be tagged in the TDS Return for payment of TDS under different sections.

This comes as a welcome relief for many deductors who have to deposit multiple challans for depositing TDS under various sections.

For Example: A Challan of Rs. 10,000/- can be used for payment of Tds U/s 194C of Rs. 4000/- and Tds of Rs. 6000/- U/s 194J.

2. Payment of Tax Deducted for different Assessment Years:

A single challan can be used for payment of tax deducted at source for multiple financial years.

Excess challan paid in any quarter can not only be used for payment in subsequent quarters of the same financial year but also for subsequent financial years also, if there is unconsumed amount in the challan.

Another welcome step is that unconsumed amount of excess paid challans can also be used for payment demands of raised by CPC for previous or current financial year also.

3. Different challans used for the purpose of reporting multiple Deductees associated with different branches with same TAN:

Another welcome step is the utility for payment a single challan for multiple deductees of different branches of an organization. However, this can be used only if different branches have the same TAN. It is a welcome step particularly for banks having a large number of branches. Now single challan can be used by all branches provided the TAN is same.

Hope you find the above information relevant and useful in your daily practice

(The author is a CA in practice at Delhi and can be contacted at: E-mail: capratikanand@gmail.com, Mobile: +91-9953199493)
Republished with Amendments

Author Bio

Qualification: CA in Practice
Company: Pratik & Associates
Location: New Delhi, New Delhi, IN
Member Since: 10 Jun 2017 | Total Posts: 54
Pratik Anand is the founder of youronlinefilings.com, an online startup for business registrations, annual business compliance services, Tax filings, book keeping, legal consultancy etc. He is a Chartered accountant by profession and has special flair and expertise in the area of direct Taxation. H View Full Profile

My Published Posts

More Under Income Tax

29 Comments

  1. G.Senthil Kumar says:

    Sir, By mistake TDS was remitted u/s. 92B against working partner salary.

    Now, can i use the same towards other deduction such as 194-J by making TDS challan correction and also let me know, whether if this is any unconsumed balance amount, it can be carried forward to 3rd and 4th Quarter.

  2. venkataratnam jupudy says:

    if a deductor deducts TDS on different types of income and uses a single challan and the same reflects in Form 26 as, how do you tag this in TDS schedule of ITR where you have to select the type of income for TDS namely whether it is House property income or capital gain or other sources or exempt income ? can we split the TDS under different heads of income when there is only one TDS entry for composite income of 3 different types ?

  3. Ankita says:

    Sir as I made payment u/s 92b of 30000₹ but I have to file return in 24q 20000₹ and 10000 in 26q.
    Is that possible I can use one challan no in both return

  4. Yogesh Khandelwal says:

    Challan u/s 194C amounting to Rs. 5000, can I use the same challan for payment for TDS of Salary?

    I mean suppose i have 194C Challan, and can i use the same challan for Salary TDS?

    1. ARJUN JIRE says:

      the paid challans can be adjusted in section non Salary like (194c to 194i).
      as per requirement its compulsory mention challan head while making payment but u can adjust challans intrahead. not allowed for salary challans to other head challans

  5. sujeet yadav says:

    hi sir i have wrongly paid challa 194j and 194c both amount included paid in 194c , what can i do ? in this case , i can use 194j in this matter
    please reply as earlies

  6. NIRAJ DWIVEDI says:

    SIR
    we not filed the return of Fy 2016-17 of salary but we want to use challan for the fy 2017-18 can i do this? pls suggest .

  7. Naveen Rishi says:

    What is the best way out for a company, which had not deposited TDS for the financial years 2013-14 and 2012-13 due to paucity of funds but now wants to deposit the same. How should it go about? Should it follow the procedure of Filing Form 26A? If yes, then up to which date the interest for late payment of TDS has to be paid to the tax department?

  8. Shubham Gupta says:

    My one deductee is a company and another one is a non company. Can I deposit a single challan for tax deducted from both of them.

    1. KRISHNA POOJARI says:

      No, you cant deposit it in one challan, you pay it in two separate challan, if you already paid means no problem, they give a concetion under welcome step.

  9. Shashi Kumar says:

    Have a query related to excess payment made in 2012-13?

    My client had paid excess TDS U/S 94C in F.Y. 2012-13 by mistake and he could not adjust it in the subsequent years. He is applied for Refund which is not yet processed. Now based on the above advisory can he adjust this excess payment in the current year? Please clarify.

  10. CA Purav Dholakia says:

    I have a few queries related to this. It will be helpful if you could clarify it.

    1. Whether payment by single challan will be applicable for Company Deductees & Non Company Deductees i.e. we will not have to pay separate challans for Company & Non Company Deductees?

    2. Whether payment by Single challan will be applicable to TCS also i.e. no separate challan will now have to be paid for TCS payments?

    3. Whether these provision will be applicable for TDS on payment to Non Residents also i.e. Sec 195 also.

    1. KRISHNA POOJARI says:

      No, you cant deposit it in one challan, you pay it in two separate challan, if you already paid means no problem, they give a connection under welcome step.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031