TDS :- Different Section Codes in a Single Challan & Excess Challan Amount can be adjusted in Next Year.

Friends,  CPC (TDS) team had communicated to their deductors through email on 10-09-2014 that there is no effect of Section Code mentioned in Challan and Deductor can deposit a single challan for payment of TDS deducted in a month.   There is no issue of Section Codes 94C, 94A , 94 J, 92A , 92B , 94H etc.  

Secondly excess amount of TDS can be used in the next Financial Year or adjustment of Defaults for previous years issued by Income Tax Department  etc. 

Now, there is no use to update Section Code through bank or assessing authority if  it is wrongly mentioned in challan.   The same can be corrected while submitting TDS Statement.  

Keeping in view of these important changes, every deductors should devote some time in reading the following communication of CPC (TDS) Team. 


Dear Deductor,

As per the records of the Centralized Processing Cell (TDS), it has been observed that you have used multiple challans in a month, for payment of Tax Deducted.

For Deductor's convenience, CPC(TDS) has established processing logic in the system that can accept a Single Challan for reporting of Tax Deposited in following circumstances :


  • Payment of Tax Deducted under different sections of the Income Tax Act, 1961:

     • The CPC(TDS) system gives credit of TDS against different sections of the Act, even though a specific section has been quoted in the challan.
     • Example: The challan used for payment of TDS relevant to Section 192 of the Act can also be used for the purpose of reporting tax deposited under Section 194 of the Act also. 
Situation prior to Financial Year 2012-13
Consumption of Challan in TDS Statement on the basis of Section quoted in the Challan details
Situation after Financial Year 2012-13
Section quoted in Challan, at the time of depositing Tax deducted/ collected is irrelevant for the purpose of consumption in TDS Statement.


  • Payment of Tax Deducted for different Assessment Years:

     • In case tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year. The balance amount if any, can be carried forward to the next year for claim in the TDS statement.
     • Example: If excess payment of Tax has been made in Quarter 1 of financial year 2013-14, the same can be used for Quarter 2,3&4 of F.Y. 2013-14 as well as for Q1 to Q4 of F.Y.2014-15. The excess amount of tax paid in Q1 of F.Y.2013-14 can also be used for payment of tax default of Q1 to Q4 of F.Y.2012-13.
  • Different challans used for the purpose of reporting multiple Deductees associated with different branches with same TAN:

     • The deductor may have used multiple challans for reporting multiple deductees associated with different branches, in the TDS Statement.
     • A single challan can be used for the purpose of reporting Tax Deducted for such deductees.
     • Example: If a Bank has multiple branches with same TAN, payment of Tax Deducted can be made by a single challan and all the deductees can be tagged using the same.
Based on the above information, you may use a single challan in a month towards payment of Tax Deposited. For any assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.
CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM


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