What is TDS Challan 281 & How to Fill TDS Challan Online/Offline?

In 2004, the Government replaced the manual procedure of collecting taxes with an Online Tax Accounting System. OLTAS issues three types of challan for depositing taxes. One such is a TDS Challan 281. It is issued to deposit Tax Deducted at Source and Tax Collected at Source. Filing TDS challan 281 online and offline is simple. If you are keen to know, continue reading.

Indian citizens, both corporates and non-corporates, can file TDS challan 281 before making a transaction of a specified category.

Want to know the online filing of income tax challan 281? If yes, keep scrolling.

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Online

Here is the following procedure to file TDS Challan 281 online -

Step 1: Visit the official income tax e-filing website.Income tax e-filing website. Click on ‘e-Pay Taxes’. Enter your TAN and mobile number to continue. Proceed with "Challan No. /ITNS 281".

Step 2: This step includes filling up the details of the deductee. This means on whose behalf you are making a payment. You can make a separate payment for-

• Company Deductees
• Non-Company Deductees

Step 3: Choose from either option under types of payment -

• Payable amount of TDS or TCS by a taxpayer
• Regular assessment of TDS or TCS 

Also, select the payment category and mode, that is, debit card or net banking.

Step 4: Verify all the details in the challan generated and make the payment using a payment method. Download the challan receipt after successful completion of payment.

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Once submitting the details, a page redirects to a bank portal. Once you complete the transaction, a challan counterfoil will be generated. This is how to generate TDS challan 281.

Offline

To file the same offline, follow the simple steps:

Step 1: Calculate the total TDS payables based on the payment and deductee type. You must also calculate the applicable interest rate, if any.

Step 2: Follow the same method described above. But select ‘Over The Counter’ as your payment method.

Step 3: Take a printout of the challan generated by the website after you  fill in the relevant information. If you are wondering how to fill TDS Challan 281, take a look -

• Write your TAN or Tax Deduction Account Number, name, contact details, address and payment type. Additionally, don't forget to specify the correct deductees – company or non-company.
• Fill in the payment details such as income tax, surcharge, penalty, and other important information.
• Mention the payable amount, cheque number, and bank's name. Write the assessment year as well.

Step 4: Visit your nearest bank and submit the duly filled form along with the payable TDS.

Step 5: Once you submit, the bank will issue a stamped receipt as proof of payment.

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As a taxpayer, you must be responsible while filing your TDS challan 281. Here are some essential pointers to keep in mind. Take a look -

Be Tax Compliant

Pay your TDS before the due date. The due dates for filing Tax Deducted at Source are -

• Government taxpayers- You must file TDS on the same day when you deduct the tax at the source. This is applicable when you need to deposit TDS without a challan. Additionally, if you need to pay TDS with challan, the due date for filing the same is the 7th day of the next month in a given financial year.
• Non-Government taxpayers – You must pay tax on 30th April for the payable taxes on March. Also, pay TDS of any other month within the 7th day of the following month.

Penalty for Non-Compliance

An interest penalty of 1.5% is levied monthly or part of the month from the deduction date for delayed payment.

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Go through the following instructions and avoid any hassle while income tax challan 281 online payment and offline as well -

DOs

• Entering the TAN number is vital for filing TDS challan 281. Submit Form 49B along with a specified fee to get your Tax Deduction Account Number.
• Verify TAN before depositing the challan. If you fail to quote TAN with the Income Tax Department, a fine of ₹10,000 will be imposed.
• While filing TDS challan 281 offline, make sure that you get a challan counterfoil with CIN mentioned on it. If you do not notice the same, contact the bank through which you deposited your tax.
• Use separate challans to deposit TDS under each section. For example, section 94C is for the payment to contractors and sub-contractors. Such codes are available at the back of TDS challan 281. Read it carefully to avoid any last-minute hassle.

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DON’T’s

• There is a difference between financial and assessment years. An assessment year is followed by the financial year. Here, you evaluate your income from the previous year and pay a tax based on your income.

For example, if a financial year is from 1st April 2021 to 31st 2022 March, then an assessment year is 1st April 2022 to 31st March 2023. Hence, don't make a mistake while filing in an assessment year in TDS 281 challan.

• Don't use the same challan to deposit TDS for corporate and non-corporate deductees.

Timely payment of TDS and remaining tax compliant is important. Make it more convenient by opting to deposit TDS online. Once you deposit, you will get a TDS challan 281. You can also download TDS challan 281 and deposit tax payables through it. Keep the procedures mentioned above in mind for a hassle-free experience.

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