Tds deposit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2012 Dear expert,
In case of a govt. deductor, tds challan should tenter at bank on the same day of deduction or the deductor has 7 days time after the day of deduction?
Please advise me?

AMIT MODI

AMIT MODI (Expert)
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08 May 2012 Two Point are:
1 TDS/TCS deducted or collected by the Govt. and Tax is paid without production of income tax Challan -> ON THE SAME DAY

2 TDS/TCS deducted or collected by the Govt. and Tax is deposited by income tax Challan ->
ON OR BEFORE 7 DAYS FROM THE END OF THE MONTH IN WHICH TAX IS DEDUCTED/ COLLECTED

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2012 what is the procedure, if tax is paying without production of income tax challan

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Great question!

When **a government deductor** deposits TDS **without production of challan**, the method used is called **"Book Entry"** or **"Book Adjustment"**, and it follows a different compliance route than regular TDS deposits via **Challan 281**.

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### 🔷 **Two types of TDS payments by Government deductors:**

| Type | Mode of Payment | Due Date |
| ---------------------------------------- | ----------------------------------------------------------------- | ---------------------------------------------------- |
| **1. Without Challan** (Book Adjustment) | Through **Form 24G** (via Pay & Accounts Office - PAO / Treasury) | **Same day** as TDS deduction |
| **2. With Challan** (Challan 281) | Regular deposit in bank with challan | **Within 7 days** from end of the month of deduction |

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### ✅ **Procedure for TDS deposit without Challan (via Book Entry):**

1. **The DDO (Drawing & Disbursing Officer)** deducts TDS from payments made (e.g., salaries, contractors).
2. Instead of depositing TDS via bank challan, the DDO **reports the deduction to the PAO/CDDO/DTO**.
3. The PAO compiles this data and files **Form 24G** monthly to NSDL (now TIN-Protean).
4. The **Book Identification Number (BIN)** is generated and communicated to DDOs.
5. The DDO then mentions this BIN while filing their quarterly TDS return.

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### 📌 Important Notes:

* No physical challan or bank deposit is involved in this route.
* Strict timelines are enforced—**same-day accounting** is required for book adjustments.
* **Form 24G** must be submitted by the 15th of the following month.

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### 🚫 If tax is not deposited as per the timeline:

* **Interest under Section 201(1A)** is applicable.
* Penalties may also be levied for **non-filing or delayed filing of Form 24G or TDS returns**.

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If you're a DDO or PAO and need help filing **Form 24G**, I can guide you through the steps or provide a checklist.

Let me know!

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