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TDS Challan ITNS 281 – Pay TDS Online with e-Payment Tax

Updated on: 16 Jan, 2024 05:49 PM
Direct tax payments facility has been migrated from OLTAS to the e-Pay Tax facility of the E-Filing portal. Taxpayers have to click on 'e-Pay Tax' to make tax payments on the portal of the Income Tax Department. The link to the portal is https://www.incometax.gov.in/

With the advent of new technologies and electronic media, everything is getting upgraded to meet the requirements of a technology-driven generation. As a result, processes like filing returns and paying taxes are also getting updated. The same initiatives have also been undertaken by the Income Tax Department in the year 2004. The introduction of an Online Tax Accounting System (OLTAS) for Direct Taxes was done as an outcome. This system was introduced to reduce human intervention in the process and reduce errors. The system also facilitates its user to ascertain the status of their request in real-time. Users can select from various options or forms available as per their requirements. One of the forms available on the OLTAS is TDS Challan ITNS 281.

What is TDS challan 281?

TDS Challan 281 is a form used in India for the payment of Tax Deducted at Source (TDS) to the government. TDS is a system where individuals or entities making specific payments (such as salary, interest, rent, or professional fees) deduct a certain percentage of the amount as tax and remit it to the government. The TDS provisions are governed by the Income Tax Act, 1961 in India.

Here's what you need to know about TDS Challan 281:

  • Purpose: Challan 281 is used to deposit TDS with the government. It is essential for entities, including individuals and businesses, who are responsible for deducting TDS from payments they make to others.
  • Components: The TDS Challan 281 form includes details such as the taxpayer's name, address, Permanent Account Number (PAN), type of payment, assessment year, and the amount of TDS deducted. It also includes the bank's details through which the payment is made.
  • Payment Modes: Taxpayers can use Challan 281 to make TDS payments either physically by visiting authorized bank branches or online through the tax department's website. Online payment methods include net banking, credit/debit cards, and electronic funds transfer (EFT).
  • Due Date: The due date for depositing TDS using Challan 281 is typically the 7th day of the following month in which TDS was deducted. For March, the due date is April 30th.
  • Filing: After depositing the TDS using Challan 281, the deductor is required to file TDS returns, typically quarterly, providing details of TDS deducted and deposited. These returns must be filed accurately and on time.
  • Consequences of Non-Compliance: Failure to deposit TDS or file TDS returns on time can result in penalties and interest charges. It's essential for deductors to comply with TDS regulations to avoid legal issues.
  • Acknowledgment: Once the TDS payment is made using Challan 281, the bank provides a receipt as proof of payment. This receipt should be retained for record-keeping and may be required during tax audits.

by the corporate or non-corporate assessee with the department.


How can I submit ITNS challan 281?

To file the challan with Income Tax department assessee can use any of the following modes:

  • Offline mode
  • Online mode

Now let’s discuss the process involved in these modes.


Offline mode to submit Challan 281

To fill and submit TDS ITNS challan 281 you should follow the step by step process explained beneath:

  • Deductors are required to select and fill the applicable challan i.e. challan number 281 with all the required information.
  • Present the Challan to the bank along with the counterfoil of challan and the amount required to be paid. Payment can be made through cash or cheque.

The Counterfoil is important as it will act as a proof of acceptance of challan and payment once it has been stamped by the bank. This counterfoil can be used for any future course of action required.


How to Submit TDS Challan 281 Online?

To make the process less cumbersome and easy for the user or taxpayers, the government has introduced the facility of depositing taxes online. The online system is used to make the payment of TDS challan at the convenience of the taxpayers.

To know how to successfully submit Challan 281 at the ease of your office or home read below the complete process:

  • Open the Tax Information Network of Income-tax Department or Click on the link: https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
  • A page as shown in the image below will open up e-paymen tax
  • Select the CHALLAN NO./ITNS 281 and click on proceed. Next, wait for the form to open up. The challan form 281 once opened will resemble to the screen shown below challan
  • Now the requisite details are required to be filled in the form as under
    Details shown in Challan 281 Information to be selected /filled
    Select the type of deductees from code: (0020) Company deductee(0021) for Non-Company deductee
    Select the type of TDS payment (200) TDS payable by the taxpayer (400) TDS under regular assessment
    Select the mode of payment Net banking or debit card
    Tax Deduction Account Number Mention the 10 digit Tax Deduction Account Number
    Assessment Year Select the relevant Assessment Year from the drop-down list
    Personal Information Type the details like address, Email ID, Mobile No. as required
    Captcha Code Type the captcha code given in the image
  • Further, Click on the Proceed button to continue with the payment process and

You can also check the status of challan online. To do the same follow the under mentioned steps:

CIN based view
TAN based view


CIN Based View

For CIN based view, enter the following details mentioned in the challan:

tax information network
  • BSR Code of Collecting Branch,
  • Challan Tender Date (Cash/Cheque Deposit Date)
  • Challan Serial Number
  • Amount (optional),

The taxpayer can view the following details after submitting the form:

  • BSR Code
  • Date of Deposit
  • Challan Serial Number
  • Major Head Code with a description
  • TAN/PAN
  • Name of Tax Payer
  • Received by TIN on (i.e., date of receipt by TIN)
  • Confirmation about the amount entered is correct or not (if the amount is entered)

TAN Based View

For TAN based view, enter the following details mentioned in the challan:

tax network
  • Provide TAN
  • Challan Tender Date from the range for a particular financial year,

The taxpayer can view the following information:

  • CIN
  • Major Head Code with a description
  • Minor Head Code
  • Nature of Payment

To know more on how to make TDS payment online Read Here.


Things to Consider Before Filing TDS Challan 281

Filing TDS Challan 281 involves several important considerations to ensure accurate and compliant tax deduction at source. Here are some key factors to consider before filing TDS Challan 281:

  • Verify Tax Deduction Applicability: Ensure that TDS provisions apply to the specific payments you are making. Review the Income Tax Act and TDS regulations to determine whether TDS is applicable and at what rate.
  • Obtain PAN: Collect the Permanent Account Number (PAN) of the payee (the individual or entity receiving the payment). TDS cannot be deducted and reported without a valid PAN.
  • Correct Tax Deduction Rate: Identify the correct TDS rate applicable to the type of payment you are making. Different sections of the Income Tax Act prescribe various TDS rates for different types of income.
  • Determine Threshold Limits: Be aware of the threshold limits. Not all payments are subject to TDS, and some may be exempt based on the total amount or specific conditions mentioned in the law.
  • Check Due Dates: Familiarize yourself with the due dates for TDS payment deposits. Late payments can result in interest charges and penalties.
  • Use Correct Challan Form: Ensure you are using the correct Challan form, which, in this case, is Challan 281 for TDS payments. Using the wrong form can lead to misallocation of funds.
  • Double-Check Challan Details: When filling out Challan 281, verify that all details are accurate, including your PAN, assessment year, type of payment, and the amount of TDS. Any errors can lead to complications during tax processing.
  • Choose Payment Mode: Decide whether you will make the TDS payment physically by visiting an authorized bank branch or online through the tax department's website. Choose the mode that is convenient and efficient for your business.
  • Maintain Records: Keep detailed records of all TDS transactions, including Challan 281 receipts and acknowledgments. These records may be required for audit purposes and during the filing of TDS returns.
  • File TDS Returns: After depositing TDS using Challan 281, it's crucial to file TDS returns accurately and on time. TDS returns provide details of TDS deductions and payments made to the tax authorities.
  • Seek Professional Advice: If you are unsure about TDS provisions, rates, or any other aspect of TDS compliance, consider seeking advice from a tax professional or consultant to ensure accurate and compliant TDS deduction and reporting.
  • Stay Informed: Tax laws and TDS provisions may change over time. Stay informed about updates and changes to ensure ongoing compliance with current regulations.

Frequently Asked Questions

Q- What is type of payment in Challan 281?

Challan No. ITNS 281 is used for depositing Tax Deducted at Source (TDS) or Tax Collected at Source (TCS).


Q- What is 400 TDS TCS assessment?

Challan 281 has two Minor Head Codes which are to be ticked by the taxpayer (a) TDS/TCS payable by taxpayer (Minor Head -200) (b) TDS/TCS on regular assessment (raised by Income-tax Department (Minor-Head - 400).


Q- What is 300 self assessment tax?

Challan No. 283 is a new challan introduced. It is for the payment of Banking Cash Transaction Tax - Major Head 0036 and Fringe Benefit Tax - Major Head 0026. The valid Minor Head for both these categories of taxes are Self Assessment Tax, Minor Head – 300, Tax on Regular Assessment Tax - Minor Head 400 and Advance Tax, Minor Head-100.


Q- Can TDS be deposited in cash?

Yes TDS can be deposited in cash through the offline method.


Q- What does ITNS mean in income tax?

ITNS (Income Tax New Series) is a challan which facilitates a corporate and non-corporate taxpayer for payment of income-tax.


Q- By when should I deposit the TDS payment online?

If both buyer and seller of immovable property are NRI, then TDS on long-term capital gain shall be deducted at 20% plus surcharge applicable if any, (plus surcharge and cess as applicable). However, TDS should ideally be deducted on sale consideration, not capital gain. Hence, a certificate from the income tax officer to the effect that TDS is to be deducted on LTCG and not on Sale consideration is required to be obtained. The TDS so deducted is to be deposited using Challan No ITNS 281.


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.