(Q1.)What is a challan?
- A challan is the requisite form for making Income Tax payments. ITNS 280 is the challan used for making payment towards Advance Tax, Self-Assessment Tax and Tax on Regular Assessment. ITNS 281 is the challan used for making payment of Tax Deducted at Source (TDS) / Tax Collected at Source (TCS).
(Q2.)What is the procedure for depositing tax?
- A form called challan available at Income Tax Department, in banks and on the Income Tax department website should be filled up and deposited in the bank along with the money. Taxes can also be paid online.
(Q3.)What is the procedure to view Challan Status on TRACES?
- Deductors / collectors will have to register on TRACES to view challan status. After logging in to your account, click on 'Challan Status' under 'Statements / Payments' menu. You can search for a challan by entering challan details.You can also view challan consumption details for a challan with available balance for a specified financial year.
(Q4.)What is meant by 'Claimed' and 'Unclaimed' challan status?
- When a challan is claimed in a TDS statement, the same is matched to the bank payments. If the challan is matched in the process, it is termed as 'Claimed'. If a bank payment is not claimed in any TDS statement, it would be termed as 'Unclaimed'.
(Q5.) What information does 'Challan Consumption Details' table provide? - Information as below:
- Challan Consumption Details table displays the statement(s) in which the particular challan was consumed.
- Challan status is displayed as 'Over Booked' when sum of tax claimed for underlying deductee rows against challan ('Amount Claimed') is greater than balance available for the challan in OLTAS.
- Challan status is displayed as 'Matched' when the challan is not consumed by the Deductor, i.e., sum of tax claimed for underlying deductee rows against the challan ('Amount Claimed') is 'Zero'.
- The challan is Partially Consumed by the Deductor, i.e., sum of tax claimed for underlying deductee rows against the challan ('Amount Claimed') is less than challan amount.
- The Challan is Fully Consumed by the Deductor, i.e., sum of tax claimed for underlying deductee against challan, i.e., 'Amount Claimed' is equal to the challan amount.
(Q6.) While making TDS payment for a rental payment, I have quoted section code 194C instead of section Code194I in the challan. Now should I approach to Jurisdictional Assessing Officer for correction of nature of payment in the challan?
- There is no need to approach Jurisdictional Assessing officer as CPC-TDS is considering the nature of payment on the basis of section code mentioned in the statement rather than section code mentioned in the challan. Only you need to quote the correct section code in the statement.
Still if Deductor wants to file correction regarding change in section code, challan correction can be done through OLTAS Challan Correction. (Refer e-Tutorial for OLTAS Challan Correction). (Q7.) Can I make TDS payment for different nature of payments (section code) through a single challan?
- Yes, you can make the payment through a single challan for different nature of payments / section code.
(Q8.) What is OLTAS?
- Income Tax Department's initiative to receive information and maintain records of tax paid through banks through online upload of challan details is termed as OLTAS (Online Tax Accounting System).
For more information on OLTAS, visit TIN. (Q9.) Which banks and bank branches are linked to OLTAS?
- User need to visit website www.Tin-nsdl.com and clicks on services where there is a heading of OLTAS and there is an option of Bank Branches.
User need to clicks on Bank Branches and Tax payer can select a state and location to get the list of Authorized Bank branches for payment of Direct Tax at the nearest location. (Q10.) What are the precautions that Deductor should take while filling up the challan?
- Deductor should take care of the following steps while filling up a challan:
1. Head of payment e.g., Corporation Tax / Income Tax.
2. Amount and mode of payment of tax.
3. Type of payment (Advance Tax / Self-Assessment / Regular Assessment of Tax ).
4. Assessment Year.
5. PAN of Deductor.
6. TAN of Deductor. (Q11.) What is the acknowledgement for submitting challan to the bank?
- The Challan Collection Branch puts a rubber stamp on the challan and its counterfoil indicating a unique CIN. CIN is of 20 digits. It comprises of seven-digit BSR Code, date of deposit (dd/mm/yyyy, i.e., eight digits) and five-digit Challan Serial Number. CIN is therefore unique for each challan throughout the country and is used for identification of a challan in OLTAS.
(Q12.) What are the challan that should be used for payment of TDS?
- Challan Number ITNS 281
(Q13.) Which minor head should be used in challan ITNS 281 for depositing default amount?
- Minor Head - 400.
