Saturday, May 5, 2012

e-tds- Single Challan for Two Quarters

Friends,   Sh. Yogesh Arora has recently asked me a question regarding single deposit of tds which was deducted from deductor in two quarters.  His question is as under :-

TDS of two quarters wrongly Deposit in a single Challan instead of two Challans.

Question :-
              I have  filed our Tds Return for Q2 F.Y. 2011-12. Some previous Tds for Q1 was outstanding which we deposit through a single challan for Q1 & Q2. Now in Q1 form 16A showing status booking as matched, but in Q2 for the same challans status is showing unmatched in all the deductees which were deposited through this challan. 

Answer :-
                  First of all i want to inform that TDS relates to two quarters should not be deposited in single challan.  Two separate challans should be deposited for each quarter.   However tin system  says to deposit separate challan for the type of deductee like company deductees or non-company deductees. 

                 But many times, it has been noticed that deductor deposit single challan for two or more quarters without having proper knowledge.   In such case,  challan will be entered in both quarter return but full  tds amount will not be entered  in TDS column in each return.   TDS amount will be entered only relates to particular quarter and balance amount will be entered in Others column.   With the example given below, position will be explained easily. 

Example :-
TDS deducted in Quarter 1  =  2000
TDS dedcuted in Quarter 2  =  3000
Amount deposited in Single Challan  = 5000.00

Entry in Annexures are normal but challan entries are complicated.   

Challan entry in Quarter -1 e-TDS return
TDS amount = 2000
Others          = 3000
Total Tax Deposited = 5000

Challan entry in Quarter -2 e-TDS return
TDS amount = 3000
Others          = 2000
Total Tax Deposited = 5000

             No doubt, problem will be resolved with the help of above suggestion, but it is not healthy practice.  In General , everyone should avoid  for single deposit for TDS deducted in two Quarters. 

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