Tds deposit
This query is : Resolved
Gurvinder Singh
(Querist)
05 September 2013
Hello Sir
Pls adv, our company has deducted TDS on contractor @2%, his PAN no shows 'C' as the fourth letter. I want to deposit TDS Challan 281. It shows 2 options. Company Deductee and Non company deductee. Which option should be ticked.
In case the fourth letter of PAN is 'P', then which option.
Also do we need to fill separate challan 281 for non company and company deductee.
Thnx
Gurvinder Singh
Pls adv, our company has deducted TDS on contractor @2%, his PAN no shows 'C' as the fourth letter. I want to deposit TDS Challan 281. It shows 2 options. Company Deductee and Non company deductee. Which option should be ticked.
In case the fourth letter of PAN is 'P', then which option.
Also do we need to fill separate challan 281 for non company and company deductee.
Thnx
Gurvinder Singh
Gurvinder Singh
(Querist)
23 September 2013
Pls adv on the abv query.
27 July 2025
Hello Gurvinder,
You're asking a good and practical question regarding **TDS deposit through Challan 281**. Here's a clear explanation:
---
### ✅ **What does the “C” or “P” in PAN mean?**
* **4th letter in PAN:**
* **'C'** = **Company**
* **'P'** = **Individual (Person)**
* **'F'** = Firm
* **'H'** = HUF
* **'T'** = Trust
* **'A'** = AOP
---
### 📌 **In Challan 281 – which option to select?**
When you open **Challan 281**, under **“Type of Deductee”**, you’ll see two options:
1. **Company Deductee**
2. **Non-Company Deductee**
**Here's how to select:**
| PAN 4th Letter | Meaning | Select in Challan 281 |
| -------------- | ---------- | ------------------------ |
| **C** | Company | **Company Deductee** |
| **P** | Individual | **Non-Company Deductee** |
---
### ✅ **Do you need separate Challans for Company & Non-Company Deductees?**
Yes — if you are depositing TDS for **both company and non-company deductees**, you must:
* File **separate Challan 281 forms** for each type.
This is necessary because TDS returns (Form 26Q) treat these categories differently.
---
### 🔁 Quick Summary:
| Scenario | Action in Challan 281 |
| --------------------------------------- | ----------------------------- |
| PAN has 4th letter **‘C’** (Company) | Tick **Company Deductee** |
| PAN has 4th letter **‘P’** (Individual) | Tick **Non-Company Deductee** |
| Both company & non-company deductees | **Use separate challans** |
---
Let me know if you also need help filling in Challan 281 step by step, or validating a PAN's structure.
You're asking a good and practical question regarding **TDS deposit through Challan 281**. Here's a clear explanation:
---
### ✅ **What does the “C” or “P” in PAN mean?**
* **4th letter in PAN:**
* **'C'** = **Company**
* **'P'** = **Individual (Person)**
* **'F'** = Firm
* **'H'** = HUF
* **'T'** = Trust
* **'A'** = AOP
---
### 📌 **In Challan 281 – which option to select?**
When you open **Challan 281**, under **“Type of Deductee”**, you’ll see two options:
1. **Company Deductee**
2. **Non-Company Deductee**
**Here's how to select:**
| PAN 4th Letter | Meaning | Select in Challan 281 |
| -------------- | ---------- | ------------------------ |
| **C** | Company | **Company Deductee** |
| **P** | Individual | **Non-Company Deductee** |
---
### ✅ **Do you need separate Challans for Company & Non-Company Deductees?**
Yes — if you are depositing TDS for **both company and non-company deductees**, you must:
* File **separate Challan 281 forms** for each type.
This is necessary because TDS returns (Form 26Q) treat these categories differently.
---
### 🔁 Quick Summary:
| Scenario | Action in Challan 281 |
| --------------------------------------- | ----------------------------- |
| PAN has 4th letter **‘C’** (Company) | Tick **Company Deductee** |
| PAN has 4th letter **‘P’** (Individual) | Tick **Non-Company Deductee** |
| Both company & non-company deductees | **Use separate challans** |
---
Let me know if you also need help filling in Challan 281 step by step, or validating a PAN's structure.
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