The CPC (TDS) Website "www.tdscpc.gov.in" has hosted a undermentioned communication on 10th September, 2014 regarding the usage of single challan for all purposes. The communication is as under:
Analysis of the CPC Communication:
1) From FY 2012-13 onwards the Section Code quoted in the challan for payment of Tax deducted is no more relevant.
Deductor can quote any Section Code on the challan for payment of TDS under other codes also. There will be no challan mismatch and no consequent tds demands in this case.
Since, the section code is no more relevant therefore CPC (TDS) has introduced a system where a single challan can be used for payment of TDS under different section codes.
Single Challan can be tagged in the TDS Return for payment of TDS under different sections.
This comes as a welcome relief for many deductors who have to deposit multiple challans for depositing TDS under various sections.
For Example: A Challan of Rs. 10,000/- can be used for payment of Tds U/s 194C of Rs. 4000/- and Tds of Rs. 6000/- U/s 194J.
2) A single challan can be used for payment of tax deducted at source for multiple financial years.
Excess challan paid in any quarter can not only be used for payment in subsequent quarters of the same financial year but also for subsequent financial years also, if there is unconsumed amount in the challan.
Another welcome step is that unconsumed amount of excess paid challans can also be used for payment demands of raised by CPC for previous or current financial year also.
3) Another welcome step is the utility for payment a single challan for multiple deductees of different branches of an organization. However, this can be used only if different branches have the same TAN. It is a welcome step particularly for banks having a large number of branches. Now single challan can be used by all branches provided the TAN is same.
tax 'N' accounts people
Tarun Kumar Gupta
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