TDS Challan Payment & Return Filing in India.

✅ What is TDS?

TDS (Tax Deducted at Source) means the payer deducts tax while making certain payments (salary, rent, commission, contractor, interest, professional fees, etc.) and deposits it with the government.

???? Example: If you pay ₹1,00,000 to a contractor with 1% TDS → you pay ₹99,000 to contractor & deposit ₹1,000 TDS to govt.

???? TDS Payment (Challan 281)

Step 1: Go to Income Tax Payment Portal

• Visit ???? https://onlineservices.tin.egov-nsdl.com or new portal https://www.tin-nsdl.com.

Step 2: Select Challan

• Choose Challan No./ITNS 281 (for TDS/TCS).

Step 3: Fill Details

• Type of Deductor (Company / Non-Company).

• Assessment Year (AY).

• Section Code (e.g., 192 for Salary, 194C for Contractors, 194J for Professional Fees).

• Nature of Payment.

• PAN/TAN of deductor.

Step 4: Make Payment

• Use Net Banking / Debit Card / NEFT/RTGS.

• After payment → You get Challan Counterfoil with CIN (Challan Identification Number).

✅ Deadline: TDS must be deposited by 7th of next month (for March → 30th April).

???? TDS Return Filing (Form 24Q, 26Q, 27Q, 27EQ)

Step 1: Collect Data

• Deductee details (PAN, name, amount, TDS deducted).

• Challan details (CIN, BSR code, date).

Step 2: Prepare Return

• Use RPU (Return Preparation Utility) from NSDL or software like Tally, Winman, Saral TDS.

• Forms:

  • Form 24Q → TDS on Salaries.

  • Form 26Q → TDS on Payments other than salary.

  • Form 27Q → TDS on Payments to Non-Residents.

  • Form 27EQ → For TCS (Tax Collected at Source).

Step 3: Validate

• Validate return using FVU (File Validation Utility).

Step 4: Submit Return

• Upload on TIN-NSDL portal or Income Tax TRACES portal using TAN login.

• Acknowledgment (Token Number) is generated.

???? TDS Return Due Dates

???? Penalties for Delay

• Late Filing Fee (Sec 234E): ₹200 per day until return filed (max = TDS amount).

• Penalty (Sec 271H): ₹10,000 to ₹1,00,000 (if incorrect details or not filed within 1 year).

• Interest:

  • 1% per month → Delay in TDS deduction.

  • 1.5% per month → Delay in TDS deposit.

???? Best Practices

✅ Deduct TDS on time (while making payment/credit).
✅ Deposit challan before due date.
✅ Match challan details with TRACES.
✅ File return quarterly without delay.
✅ Download Form 16 / Form 16A for employees/vendors.

✅ In short:

• Step 1: Deduct TDS.

• Step 2: Pay via Challan 281 (before 7th).

• Step 3: File quarterly TDS return (24Q/26Q/27Q).

• Step 4: Issue TDS certificate (Form 16/16A).