TRACES (TDS Reconciliation Analysis and Correction Enabling System) // General Question and Answer Of Challan // SUNIL RAJAI // MONARCH

TRACES (TDS Reconciliation Analysis and Correction Enabling System)
General Question and Answer Of Challan

Question (1) : While making TDS payment for a rental payment, I have quoted section code 194C instead of section Code194I in the challan. Now should I approach Jurisdictional Assessing Officer for correction of nature of payment in the challan?
Answer : There is no need to approach Jurisdictional Assessing officer as CPC-TDs is considering the nature of payment on the basis of section code mentioned in the statement rather than section code mentioned in the challan. Only you need to quote the correct section code in the statement.

Question (2) : Can I make TDS payment for different nature of payments( section code) through a single challan ?
Answer : Yes, you can make the payment through a single challan for different nature of payments / section code in a month.

Question (3) : What is OLTAS?
Answer : Income Tax Department's initiative to receive information and maintain records of tax paid through banks through online upload of challan details is termed as OLTAS (Online Tax Accounting System). For more information on OLTAS, visit TIN.

Question (4) : Which banks and bank branches are linked to OLTAS?
Answer : Tax payer can select a state and location to get the list of Authorised Bank branches for payment of Direct Tax at the nearest location.

Question (5) : What are the precautions that deductor should take while filling up the challan?
Answer : Deductor should take care of the following steps while filing up a challan:
• Head of payment e.g., Corporation Tax / Income Tax
• Amount and mode of payment of tax
• Type of payment (Advance Tax / Self-Assessment / Regular / Tax on Dividend)
• Assessment Year
• PAN of Deductor
• TAN of Deductor


Question (6) : What is the acknowledgement for submitting challan to the bank?
Answer : The Challan Collection Branch puts a rubber stamp on the challan and its counterfoil indicating a unique CIN. CIN is of 20 digits. It comprises of seven-digit BSR Code, date of deposit (dd/mm/yyyy, i.e., eight digits) and five-digit Challan Serial Number. CIN is therefore unique for each challan throughout the country and is used for identification of a challan in OLTAS.

Question (7) : What are the challan that should be used for payment of demand amount?
Answer : Challan Number ITNS 281.

Question (8) : Which minor head should be used in challan 281 for depositing default amount?
Answer : Minor Head - 400

SOURCE : TDSCPC
Best Regards,
- SUNIL RAJAI