New
January 18, 2023
By
Jasmine John

What is TDS Challan ITNS 281 and How Do You Use It?

Introduction

Advance tax payment is a mandatory requirement under section 194 of the Income Tax Act. This article talks about how you can use the ITNS 281 form to pay advance taxes.

This article talks about how you can use the ITNS 281 form to pay advance taxes.

1. How to fill ITNS 281 form?

2. How to submit the ITNS 281 form?

3. How to pay advance taxes using the ITNS 281 form?

TDS Is A Way To Collect Tax At The Source.

TDS is a way to collect tax at the source. It is one of the modes of collection of taxes.

Tax is deducted at the source by the deductor and remitted to the government by the deductee.

TDS Is A Means Of Collecting Income Tax In India.

TDS is a means of collecting income tax in India. It is mandatory for every employer to deduct TDS from the salary payable to an employee, who has not declared it as his/her source of income.

TDS Is One Of The Modes Of Collection Of Taxes.

TDS is one of the modes of collection of taxes. There are other modes too, for example, CENVAT Credit or Customs Duty. However, TDS is a way to collect tax at the source and it is mandatory for every employer to deduct TDS from the salary payable to an employee who earns above a certain limit.

Tax Deduction

Tax is deducted at the source by the deductor and remitted to the government by the deductee.

The Income Tax Department has issued an order regarding the TDS Challan Form ITNS 281. This form is required to be submitted by every employer who pays salary or wages, whether in cash or kind, to an employee.

The deductee is the person who receives a salary and he has to submit Form ITNS 281 along with his bank statement showing a withdrawal of tax at source (TDS) amounting to Rs 10 lakhs or more during the financial year 2017-18. The instructions on this form are given below:

1. Enter details of your company/business name and PAN number in column A;

2. Enter details about your employee(s) such as name/address phone number email id etcetera in columns B -E;

3. Enter details about deductions made by deducting TDS from salary payable under section 80G IT Act 1996 during the financial year 2017-18 including details like the date received by you if any information about these deductions was not included in other columns already mentioned above

Is TDS Mandatory?

It is mandatory for every employer to deduct TDS from the salary payable to an employee. An employer has to deduct TDS from the salary payable to an employee.

However, it is not mandatory in all cases. For example, if you pay your employees directly and they do not have a bank account or PAN card, then you will be required to issue them a TDS Challan ITNS 281. In such a case you should also submit this form along with the same details mentioned on the form (name of employee/employer etc.)

When Does Such A Situation Arise?

Such a situation takes place when a salary is paid without any tax deductions. Salary is the basic or flat amount payable to an employee by his employer and in the absence of any other source of income, it constitutes his entire income. This amount may vary depending on different factors such as age, experience or qualifications, etc., but it must be considered as fixed pay that provides for subsistence only.

A salaried employee enjoys full tax exemption under section 10 (1) or chapter VI-A of the Income Tax Act, 1961(ITA), if he receives all his emoluments in cash and does not have any other means available with him to make his provision for expenditure made by him in the discharge of duties assigned by his employers on nominal wages basis alone;

How To Make An Advance Tax Payment

You can make an advance tax payment online. To do so, you need to fill in ITNS 281 form and submit it at your nearest bank with cash or cheque or demand draft from your own account (not from another person's account).

You may also pay advance tax by depositing money in your bank account using a debit card.

Conclusion

In this blog, we tried to explain what is a TDS Challan ITNS 280 and how it works in India. TDS Challan ITNS 280 is a mandatory document for every person who is an employee of a company or an individual. This TDS Challan ITNS 280 is used for filing the income tax return.

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