Challan 281 (ITNS 281) is used to deposit TDS and TCS, now paid through the income-tax 'e-Pay Tax' portal. Select code 200 for a regular deduction or 400 for payment against a demand, choose the correct section and assessment year, and retain the Challan Identification Number (CIN) for the TDS return.
What Challan 281 is
Challan 281 is the challan for depositing tax deducted/collected at source. It is now filed online via the income-tax portal's e-Pay Tax facility (replacing the old NSDL/OLTAS page). The deductor pays using net banking, debit card, NEFT/RTGS or over the counter, and receives a CIN.
Key fields
| Field | What to select |
|---|---|
| Type of payment | 200 = TDS payable by deductor (regular); 400 = TDS on assessment (demand) |
| Nature of payment | The section code (e.g. 194C, 194J, 192) |
| Deductee type | Company (0020) or non-company (0021) |
| Assessment year | The relevant AY |
Due date
TDS must be deposited by the 7th of the following month (for March, by 30 April in most cases). Late deposit attracts interest under Section 201(1A) at 1.5% per month. Use the correct section code so the credit maps correctly in the return.
Practical points
- Save the CIN (BSR code, date, challan serial) for entering in the TDS return.
- Use code 200 for normal monthly deposits, 400 only for demand payments.
- Separate challans are not needed per section in the same month under current rules, but tag the nature of payment correctly.
- Reconcile the challan in the TDS return.
Key takeaways
- Challan 281 deposits TDS/TCS via the e-Pay Tax portal.
- Code 200 = regular deduction; 400 = demand payment.
- Deposit by the 7th of the next month (March by 30 April).
- Save the CIN for the TDS return.