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What is TDS Challan 281 & 282?

If you are a salaried individual and pay your taxes in India, you may have come across the term ‘TDS’ or Tax Deducted at Source and TDS Challan. The TDS is succeeded by the Central Boarding of Incidental Tolls. The TDS Challan is needed to bond the TDS amount abstracted to the IT (Income Tax) division.

There are different types of TDS Challan, and you must choose the right one to suit your requirement. Let us know more about what TDS challan is and its types.

What is TDS Challan?

A TDS Challan is essentially a form used to deposit TDS and the TCS (Tax Collected at Source) to the government. The challan was first introduced in 2000 by the Government of India primarily to eliminate the risk of human error while filing TDS and facilitate the online filing of TDS.

Under Challan for TDS, an individual or a taxpayer is responsible for making specified payments to others like salary, rent, commission, or interest must deduct a stipulated percentage of the TDS amount before paying it to the employee or the payee.

Types of TDS Challan

The Indian Income Tax Department has divided the income tax into six different types of challans. As a taxpayer, you must fill a specific type of form for each type of challan income and submit the same online while paying the tax.

  • TDS Challan 281

TDS Challan 281 is used to deposit TDS or TCS, and both corporate entities and individuals can fill this challan. You can fill the tax challan online through the TIN NSDL website. It is a way of filing the taxes introduced by the Government, especially for rent and salary.

An employer is responsible for deducting a specific percentage of the pay from the employee’s salary every month before assessing the actual value of the tax payable. And if the employer has overpaid the taxes, they can file for a tax return at the end of the financial year.

On the other hand, the TCS Tax is an advance tax deducted by the seller from the buyer when they purchase goods and services. The due date for filing TDS and TCS is different for government and non-government entities.

To file the TDS Challan 281 online, you must fill the relevant form with all the required details and select the TDS payment type. For example, if you want to deduct TDS on the payment made to the sub-contractor, you must choose Section 94C.

There are different sections under TDS, and you must carefully select them while making the deposit; make sure that you choose the correct code for the payment.

  • TDS Challan 282

TDS Challan 282 is used to deposit different types of indirect taxes such as estate duty, gift tax, expenditure tax, etc. Like filing TDS Challan 281, when you file TDS Challan 282, you must choose the right section and fill the relevant form. You can make the online challan payment digitally through the Income Tax website. Another vital thing to know about making TDS Challan 282 payment is that you must have net banking registered with any bank of your choice to pay the amount.

Now that you know about the different types of TDS Challan, do your due diligence and choose the right challan type while making TDS payments.

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