Use of single TDS challan for all purposes-Analysis of CPC (TDS) Communication dated 10th Sept’ 2014

Use of single TDS challan for all purposes-Analysis of CPC (TDS) Communication dated 10^th Sept’ 2014

                                                                                                By C.A Pratik Anand, ACA

Following communication has been hosted on the CPC (TDS) Website-www.tdscpc.gov.in on 10^th September’2014.

Dear Deductor,

As per the records of the Centralized Processing Cell (TDS), it has been observed that you have used multiple challans in a month, for payment of Tax Deducted.

For Deductor’s convenience, CPC (TDS) has established processing logic in the system that can accept a Single Challan for reporting of Tax Deposited in following circumstances:

·         Payment of Tax Deducted under different sections of the Income Tax Act, 1961:

 • The CPC (TDS) system gives credit of TDS against different sections of the Act, even though a specific section has been quoted in the challan.

 • Example: The challan used for payment of TDS relevant to Section 192 of the Act can also be used for the purpose of reporting tax deposited under Section 194 of the Act also. 

Situation prior to Financial Year 2012-13	Consumption of Challan in TDS Statement on the basis of Section quoted in the Challan details
Situation after Financial Year 2012-13	Section quoted in Challan, at the time of depositing Tax deducted/ collected is irrelevant for the purpose of consumption in TDS Statement.

·         Payment of Tax Deducted for different Assessment Years:

• In case tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year. The balance amount if any, can be carried forward to the next year for claim in the TDS statement. 

 • Example: If excess payment of Tax has been made in Quarter 1 of financial year 2013-14, the same can be used for Quarter 2, 3 & 4 of F