CA Pratik Anand

CPC (TDS) Website has made a communication dated 10th Sept’ 2014 in which it has issued advisory for deductors using multiple challans in a month, for payment of Tax Deducted.

In this advisory it has discussed the following three key areas-

  • 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)

Author Bio

Qualification: CA in Practice
Company: Pratik & Associates
Location: New Delhi, New Delhi, IN
Member Since: 10 Jun 2017 | Total Posts: 53
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

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10 responses to “Use of single TDS challan for all purposes-Analysis”

  1. 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

  2. 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 .

  3. Nathanael says:

    TDS paid for 194j can be adjusted towards TDS of 194I?or for the outstanding demand of other section

  4. 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?

  5. 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.

  6. 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.

  7. arun says:

    is there any notification regarding this.

  8. B.Chackrapani Warrier says:

    Read. Thanks for sharing.

  9. SUKSHAM ARORA says:

    For 1st pt.
    you can pay through single challan for companies and non – companies

  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.

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