Tds deposit

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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)

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)

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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