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:
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