Importance of "Type of Payment Codes" in TDS or Income Tax Challan.

Mostly Tax Deductor or Tax Depositee did not care how to file the Tax or TDS Challan properly and while filing the TDS or TAX Challan, they make mistakes mostly regarding Type of Payment Codes. There are two type of Type of Payment Code i.e. 1. 200 and 2. 400. Tax/TDS Deductor or Deductee must check the Payment Code in TDS/Tax Challan before Tax/TDS Deposit in Bank else they will face the problem while submitting the TDS Return.

As per my persional view, every TDS Deductor/Deductee should some time in knowing the value of these codes 200 or 400. If deductor deposit TDS in code 400 as TDS/TCS Regular Assessment (Raised by Income Tax Department), the same does not appear in ".csi" file. It means the particular challan can not be verified while generating ".FVU" file. Thus I suggest to TDS/TAX Depositor its seriousness, deductor should use 400 code in Challan 281 for making any payment only when demand has been raised by Income Tax Department.

Tags: Correction in TDS Challan, TDS Challan, TDS Return, e-TDS Return.