Single challan for all TDS payments
An overview of the single challan for all TDS payments
In this post, we will discuss how a single challan can be used to make the make of all TDS in a particular month. It is often seen that deductors pay monthly TDS through multiple challans due to payments falling in different sections and codes (Companies and Non-Companies) under which the tax is deducted.
This process of making multiple challan payments is time-consuming. To simplify this, TRACES has created a system that accepts a single challan per month for paying all taxes to be deposited in a month. The following are the scenarios for the payment;
1.Payment of Tax Deducted under different sections and codes of the Income Tax Act, 1961:
From FY 2013-14 onwards, the Section & Code of the Challan for TDS payment is no longer relevant. TRACES has introduced a system allowing a single challan to pay TDS under various sections & codes. Deductors can use any Section & Code on the Challan for TDS payments. This change was to eliminate challan mismatches and related demands.
and simplify the process.
For example, a Rs. 10,000 challan can be used to pay Rs. 4,000 TDS under Section 194C and Rs. 6,000 TDS under Section 194J.
| Situation before Financial Year 2013-14 | Tax to be paid Section wise and code wise |
| Situation after Financial Year 2013-14 | A single challan can be paid for all sections and code in the month. |
2.Adjustment of excess TAX paid in different Assessment Years:
If excess Tax has been deposited than the required Tax for a particular Assessment Year, the excess amount of Tax can be claimed in the subsequent quarters of that year. If the amount is in excess even after the financial year ends, it can be carried forward to the next year for a claim in the TDS statement.
Example: If excess payment of Tax has been made in Quarter 1 of financial year 2023-24, the same can be used for Quarter 2, 3 & 4 of F.Y. 2023-24 as well as for Q1 to Q4 of F.Y.2024-25. The excess amount of Tax paid in Q1 of F.Y.2023-24 can also be used for payment of tax default of Q1 to Q4 of F.Y.2022-23.
We hope you find the information above relevant and helpful in your everyday practice. If you have any questions or queries, please leave a message in the comment section below.
