Updating TDS challans

Updating TDS challans

Menu Path: Payroll > Update > TDS tab
Accessible to : Payroll Manager

From this tab the details of tax payments made to the government can be updated. Tax is paid under different sections as per the tax laws -
1. 92B : For regular salaried employees
2. 94C : For retainers falling under the category of Contractors
3. 94J : For retainers falling under the category of Professionals

Refer to the article on Payroll for different types of employees for more details.

On the tab select the company name and TAN number if there are a multiple companies or multiple TAN numbers.

There are multiple scenarios while updating payment details
1. The total TDS liability of the month has been paid by one challan
2. Total TDS liability of multiple months has been paid by one challan
3. Partial amounts have been paid for one month
4. Lump sum amount has been paid and it covers more than one month
5. Setting off extra payment

Each of the above scenarios is explained below.

Other features available on this page are
1. Use the "Exclude from 24Q" button if you do not want to use the challan for 24Q generation
2. Use "Update Nil Challan" button if you have zero tax liability in any particular quarter


Notes
Note - the TDS liability shown on this tab is only for the employees for which payroll / full and final has been run and confirmed, unconfirmed or in-process records will not be shown here.

1. Full payment through a single challan for one month

This is the most common scenario and should be used to avoid delays and penalties.
- Select the check box on the first column for the month and click on "Update Payment Details" button
- Fill up the details on the form which opens updating the challan details - Date of Payment, BSR Code and Challan Serial Number are compulsory fields. You will not be able to change the Basic Tax, Surcharge, Cess figures. 


2. Full payment through one challan for multiple months

You can use this process if you are making payment of multiple months in one challan.
- Select the check boxes on the first column for the months for which payment has been made and click on "Update Payment Details" button
- Remaining steps are same as the previous section

Notes
Note - if you have made payment for multiple months which are falling across a quarter through one challan then read section - "5. Updating Excess Payment" of this article carefully before filling up the details.

3. Partial payment within one month

You can use this process when you are not making the full payment of TDS to the Government.
- Click on the "Partial Payment" button on the last column of the month for which you want to update
- You can select the list of employees for which the payment has been made manually or through an excel upload, make your selection and click on Next button as shown below


3.1 Manual selection

Select the names of the employees manually, click on Next.


The total liability including Tax, Surcharge and Cess is shown on the bottom of the last column. In the challan details you will update you can update this or lesser amount. If you have paid more amount than you can either select more employees or use the remaining amount for another month.

When filling up the details of the challan Basic Tax, Surcharge and Cess are prefilled with the system values but you can update these fields with the actual amount you have paid. For the purpose of calculation all three heads are combined together and considered as tax paid. It is explained in the example below.


When you submit the challan details and if the amount updated is less than the total to be paid for the selected employees then you will be asked to select the employee for which partial payment has bee done.


The drop-down will only have names of those employees where the Basic Tax to be paid is higher than the shortfall. When you select the employee and click on "Submit" then the Basic Tax paid amount of the employee is adjusted (reduced) by the necessary value.

Idea
Example

Suppose the tax to be paid for selected employees is

EmployeeBasic TaxSurchargeCess
Emp 1250005001020
Emp 240000160
Emp 31200048
Total302005001228

Total due is 31,928

But the actual payment made is -
Basic Tax - 28,000
Surcharge - 0
Cess - 0
Total - 28,000

You can update the actual amount paid but system will treat it as a single payment against the total tax liability and the 24Q will show the surcharge and cess figures as per the calculated liability.

Since there is a short payment of Rs 3,928 you can select either of Emp 1 or Emp 2 as the employee where partial payment has been done. Suppose you select Emp 1 then the final amount which will be updated in the system as paid will be as follows. 

EmployeeBasic TaxSurchargeCess
Emp 1210725001020
Emp 240000160
Emp 31200048
Total262725001228

Total amount will be 28,000. These figures will also go in the 24Q.

3.2 Excel Upload

When you select the option of updating the employee list through excel upload you will be able to download an excel template and update the list of employees for whom tax is being paid.


You can delete the names of employees who are not included in the challan and upload the file using the "Upload" button.


After you click on Next the subsequent steps are similar to previous sections.

4. Lump sum payment adjusted against multiple months

If you have made a payment which is more than one month's liability but is not completely matching the due amount for multiple months you can follow the steps given above in scenario 1 and scenario 3. First update the full months details and then you can update the remaining amount as partial payment in some other month.

5. Setting off excess payment

If you have made extra payment in any particular month then you can adjust it against future challans or against interest / penalty of previous month's payments. There are two different ways you can follow to manage the adjustment against future challans.
1. Through a set-off challan - the process to create a set-off challan is explained below.
2. Using the same BSR Code / Challan details against another payment in a subsequent month - the process of payment is similar to that explained in section 3 - partial payment.

5.1 Create a Setoff challan. record that extra payment by following the steps given below
Option 1. Update it in "Other" field when updating challan details.


A set-off challan will be created automatically and will be visible on the page.

2. Manually create a set-off challan
a) Click on "Create Challans for Setoff" button
b) Fill up the details as shown below



Amount of 1400 is being updated as being paid extra, this amount will be available for set-off in subsequent challans. To set-off the amount

- click on "Setoff" button as shown above
- select the month against which you want to set-off this amount



- You will get a confirmation message. Click on "Yes". The extra amount will be set-off against this challan and status of this challan will be updated as "Partial Payment" or "Paid".

6. Correcting challan details

If you have made a wrong entry in the challan and want to correct it you can do so by using the Edit button on the Paid challan. This can be done as long as the challan has not been used in generation of 24Q subsequently.

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