November 27, 2022

Who needs to file Challan 281?

TDS stands for Tax Deducted at Source, which is an official document. Challan can be a bill receipt, invoice, or official summons. The Central Board of Indirect Taxes is in charge of this. More on TDS challan 281 will be discussed in this post.

History of Challan 281

The manual tax collection technique was phased out in 2004 in favor of the Online Tax Accounting System (OLTAS).

It was implemented with the goal of decreasing human error and facilitating the online transfer of information on taxes collected, deposited, and refunded, among other things. OLTAS issues a single challan copy and allows taxpayers to track the progress of their challans or e-challans deposited in banks online.

  • ITNS 280 challan – issued for income tax deposit (includes self-assessment tax, advance tax, tax on regular assessment)
  • ITNS 281 challan – Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) challan ITNS 281 issued for depositing TDS and TCS (TCS)
  • ITNS 282 challan – Gift tax, wealth tax, Securities Transaction Tax (STT), and other direct taxes are deposited using Challan ITNS 282.

Compliance for Challan 281

When the taxpayer submits TDS and TCS, a Challan ITNS 281 is issued. As a result, it must adhere to the established deadlines for deducting and depositing tax. TDS payments are due on certain dates.

  • TDS is deducted on payments (save for the purchase of real estate) on the 7th of the following month.
  • TDS deducted on property purchase: 30th of the next month.
  • TDS was deducted on the 30th of April in the month of March.

If you don’t pay your taxes on time, you’ll be charged interest at the rate of 1.5 percent each month (or part of a month) from the date of deduction. If you are a hardware business or a wholesaler and need some assistance filling challan 281 online, you can click here to get more information.

In the offline approach, the taxpayer can pay by visiting the bank and filing a challan in person. It is important to remember that payment can be done by check or cash. When the challan is submitted, the bank will provide a counterfoil receipt that is back-stamped as confirmation of submission.


This challan is used by both corporate and non-corporate entities to deposit TDS and TCS. TDS (Tax Deducted at Source) is a government-instituted mechanism in which a person (deductor) deducts tax at a specified percentage from an amount payable to the payee (deductee) before making a payment of a specified nature (such as salary, rent, etc.) and deposits it with the Income Tax Department. TCS or Tax Collected at Source, is the tax that the seller collects from the buyer at the time of the sale of certain items.