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TDS Challan ITNS 281 – Online and Offline Payment Modes

What is Challan ITNS 281

Challan ITNS 281 or Challan 281 is used to deposit Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) by corporate or non-corporate enterprises. TDS is a method of deducting respective taxes at source before making the payment. For example, a company cuts the taxes from an employee’s salary before giving out salaries. The taxes are calculated using specified percentages as stipulated by the government.

If you are a non-government assessee, you can pay TDS by the 7th of the next month. For example, you can deposit the TDS of May by June 7th. For March only, you have to deposit TDS by 30th April.

If you are a government assessee, you can pay TDS without challan 281 on the same day. For paying TDS with challan 281, you can pay until the 7th of the next month. If you are a government assessee, you have to pay the TDS for March by April 7th.

If your TDS is deducted on time but is not deposited within the specified period, the company has to pay an interest of 1.5% per month from the last date of payment. For example, if the TDS for January has been deducted but not deposited till April 7th, the company will have to pay an interest of 3% for the months of March and April.

How to Submit the TDS Challan ITNS 281?

You can submit the TDS Challan ITNS 281 in two ways:

Offline Payment Mode

You can submit the TDS Challan 281 by following this process:

  • The deductors need to fill the TDS Challan 281 with all the relevant information
  • Submit the Challan 281 to the bank along with the counterfoil and the amount payable
  • The amount can be paid by cheque or DD
  • The bank will return the counterfoil. This is the proof of acceptance of payment. The counterfoil needs to be preserved in case of future issues.

Payment can be made in cash as well. If the payment is at a bank where the payee has an account and the payment is made by cash/cheque, the bank will accept the payment, stamp the TDS challan 281 counterfoil immediately, and return it to the payee. 

But if the payment is made by cheque or DD at some other branch, the collecting branch will issue a paper token as an acknowledgement of payment. The taxpayer should submit this paper token at the same branch after the cheque has been encashed. Then, the bank will stamp the TDS challan 281 counterfoil with the Challan Identification Number (CIN) and return it to the payee.

Online Payment Mode

The GOI has introduced the online facility for Challan 281 payment to make tax payment easier and more convenient for taxpayers. You have to:

SectionInformation to be filled
Select type of deductees from code0020 for company deductee0021 for non-company deductee
Select type of TDS payment200 for TDS payable by the taxpayer400 for TDS under regular assessment
Select mode of paymentNet bankingDebit card
Tax Deduction Account Number10-digit Tax Deduction Account Number also known as TAN
Assessment yearSelect the year from the dropdown list
Personal informationDetails like name, address, email ID etc.
  • Click on the Proceed button once you fill in all the details
  • Complete the payment details
  • To check the challan 281 status online, open the OLTAS Challan Enquiry Portal https://tin.tin.nsdl.com/oltas/index.html
  • Select the type of view you want – CIN-based or TAN-based
  • For the CIN-based view you will need:
    • BSR code of the collecting bank branch
    • Challan Tender date
    • Challan Serial Number
    • Amount
  • For a TAN-based view, you will need:
    • TAN
    • Challan Tender date of the range of financial year

The collecting branch enters the following details for every TDS challan ITNS 281:

  1. OLTAS user ID and password
  2. Branch scroll date
  3. Major Head Code description

A Nodal branch enters the following details for a TDS challan ITNS 281:

  1. OLTAS user ID and password
  2. Nodal scroll date
  3. Major Head Code description

Banks can also make use of the challan enquiry status. However, they can access only a few details. 

Collecting Bank Branch:

The collecting bank branch can access the total amount of all the challans and the total number of challans for each major head code by entering the branch scroll date and major head code description. Besides these, the collecting bank branch can view the following details:

  • Challan 281 Serial Number
  • Challan Tender Date
  • PAN/TAN
  • Name of taxpayer
  • Amount
  • Date of receipt by TIN

Nodal Bank Branch:

The Nodal bank branch can enter the nodal scroll date and major head code description and view the following details:

  • Nodal branch scroll number
  • Scroll date
  • Major Head Code description
  • Total amount
  • Number of branches
  • Number of challans

Additionally, for each nodal branch scroll number, the nodal branch can view:

  • BSR code
  • Branch Scroll Number
  • Branch Scroll Date
  • Total amount 
  • Number of challans
  • Date of receipt by TIN

Conclusion

You can easily fill out the TDS challan ITNS form 281 for income tax. The online process is easy, and you can complete the process within a few clicks. In case you are late in payment of TDS, you can use the GST late fees calculator to calculate the correct amount to be paid with GST.

Frequently Asked Questions

What is Challan 281 and what type of payment can I make with it?

TDS Challan ITNS 281 is used to submit Tax Deducted at Source (TDS) or Tax Collected at Source (TCS)

How to submit Challan 281?

You can submit the Challan ITNS 281 using offline or online methods. For the offline method, you have to deposit the money at the bank, and for the online method, you can use net-banking or a debit card to deposit money.

Can I deposit TDS in cash?

Yes, you can deposit TDS in cash in the offline method.

What will happen if I don’t deposit TDS on time?

For every delayed month, you have to pay an interest of 1.5% on the amount. You have to deposit TDS for a month by the 7th of the next month.