TDS Single Challan – All Sections: Use Up to 3 Years

TDS Single Challan – All Sections: Use Up to 3 Years

TDS Single Challan – All Sections: Use Up to 3 Years – CBDT Update

Did you know that you can now deposit all your TDS under different sections using a Single Challan? Yes, you can use a single challan for TDS payments under various sections, and this is applicable for up to 3 years!

Even today, many businesses continue to deposit TDS using multiple challans each month—sometimes between 10 to 15 different challans. But here's some great news for all those who face this challenge!

Important Update for All Assessees

For those unfamiliar with this development, it may sound like old news—but for many, this is a BIG UPDATE. TDS compliance has often been complex, but the Government has simplified the process significantly.

Key Benefits:

• One Single Challan for Multiple TDS Payments: You can now deposit all your TDS under different sections (e.g., TDS for Salary, Contractors, Professionals) through one single challan.

• For Different Entities: Whether you are a company, firm, or proprietorship, you can use a single challan to deposit TDS.

  For example:

  • A challan used for TDS under Section 192 (Salary) can also be used for TDS under Section 194 (Contractors).

CPC (TDS) Advisory:

The Centralized Processing Centre (CPC) for TDS has issued an advisory for all deductors who were previously using multiple challans for TDS payments. Here are the main points from the advisory:

1. Payment of Tax Deducted under Different Sections:

   • You can now deposit TDS for Salary (Section 192), Contractor (Section 194), and Professional (Section 194J) using a single challan.
   • This flexibility extends to both corporate and non-corporate entities.

2. Payment of Tax for Different Assessment Years:

   • If excess tax has been deposited in a particular assessment year, it can be carried forward and adjusted in the following quarters of the same year, or even in subsequent years.
   • Example: If you overpaid TDS in Q1 of FY 2013-14, you can use this excess amount for the remaining quarters of FY 2013-14 or even carry it over to FY 2014-15.

3. Reporting Multiple Deductees with Same TAN:

   • If you have multiple branches with the same TAN, you can use a single challan to report TDS for all deductees across branches.
   • This simplifies the process, as all branches can make the payment with a single challan.

How It Works:

With the updated system (post-Financial Year 2012-13), the section mentioned in the challan during the TDS deposit is no longer relevant for the TDS statement. This means you can use one challan for multiple sections, and it will be correctly reflected in your TDS return.

Core Benefits:

• No need for multiple payments.
• Flexibility to pay a round figure (e.g., Rs 5 lakhs) and adjust it later if required.
• Pay now and adjust later for flexibility in e-filing.

Example:
If your monthly TDS outgo is approximately Rs 5,00,000, but some vendor bills or approvals are pending, you can deposit Rs 5,00,000 before the 7th of each month, and adjust it later during the e-filing process.

By overpaying, you can carry forward the excess amount for the next month or even the next financial year.

Why This Is a Game Changer:

• Saves time: No need to deal with multiple payments.
• Reduces data entry: One challan means less paperwork.
• Saves you from online payment hassles.
• Fewer administrative challenges.

You can read more about this topic in detail on TaxGuru.

Official CBDT Source:

Circular on Single TDS Challan

If you have any questions or need assistance, feel free to contact us at ContactUs@tdscpc.gov.in or call the Income Tax Department toll-free at 1800 103 0344.

For personalized guidance, you can reach out to us at:7014451513 or at vardhmantaxcon@gmail.com