Important points to note related to ITNS-281 are as follows:
1. Company Deductee/Non-Company Deductee – Although this appears in the Challan format, however it has lost its relevance as now one can include Company / Non-Company Deductee in the same Challan. It does not matter whatever one may select.
2. Assessment Year – The Assessment Year as mentioned in the Challan is important as the TDS deposited through the Challan, can only be used for deductions made in the mentioned assessment year, the immediate next year and all earlier years.
3. TAN (Tax Account No.) – This determines the identification of the Tax Deductor / Collector. Any error in the TAN is as good as not making payment of TDS/TCS dues. As such its correctness is of prime importance.
4. Type of Payment – Although it still appears in the Challan format, it has lost its relevance ever since the ‘type of payment’ is linked to each Deductee instead of all dedicates of the same ‘type of payment’ was clubbed under one Challan. One still needs to specify the ‘type of payment’, which in any case will be ignored by the IT Department, while processing the Challan. Also it is important to note the same Challan can be used for multiple ‘types of payments’.
5. Details of Payment
– Tax, Surcharge & Cess: The sum total of the Tax, Surcharge & Cess may be clubbed together and placed under Tax for convenience.
– Fee under Section, 234E: This is the fee for delay in submitting the TDS/TCS Returns.
– Interest: This amount includes:
• Interest on delay of deposit of TDS/TCS.
• Interest on late Deduction of Taxes.
6. BSR Code & Challan Identification No. (CIN)
After Challan is paid, the receiving bank acknowledges the receipt by providing the following information:
– BSR Code – This is a 7-digit code number that identifies the receiving bank
– CIN – This is a unique transaction serial number provided by the bank.
– Date of Payment – The date of receipt of payment by the bank
The above information is very important and needs to be specified correctly while preparing the TDS / TCS Returns. Make sure it is properly readable (especially for Challans used for Cheque / Cash payments across the counter)
Online payment using Challan ITNS 281
Fees for Late Filing of TDS Returns (Section 234E)