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If i deposited cheque on due date, have i made late payment?

Page no : 2

Rajesh Kothari (CEO) (74 Points)
Replied 30 August 2012

Originally posted by : Gaurav Aggarwal

After reading case laws {shared by Hemchand} i have to say that there is no point to discuss further on this topic.. bank and income tax dept will never entertain such events :-(


Dear Gaurav Agarwalji, question here is, whether they agree or not - we need to know clearly what is the position of law with respect to payment date.

I feel that there is a mistake by NSDL in treating 'Reporting Date' by Bank as 'Tender Date'. If you see the attached image of Challan - it clearly states that "Accepted for Clearing" date is 7th Sept 2011.

But, it seems that they remitted the money to Income tax dept on 16-Sept (stamp says "Cash Received") and NSDL takes this remittance date as "Challan Tender Date". Now, this is a WRONG practice. Under "Challan Tender Date" bank's "Accepted for Clearing Date" should be there.

If you notice there is one more date "Received Date" on NSDL site - which seems to me the date on which Income Tax dept received the payment from State Bank of India.

So here, key issue is which date should be taken as "Challan Tender Date" - whether it is bank received the cheque or bank remitted the money to Income tax? To me, answer is self evident.

So, it is time that Bank and NSDL take corrective action; and save tax payers their valuable time and money.

U S Sharma ( (21036 Points)
Replied 30 August 2012

@ Dear Rajesh Kothari 


1st of all we have to be aware that when we present our cheque for any tax payment to govt, we must ensure that it is presented well before time to take effect before the due date. where when we get stamped with "received date" we feel ensure that we have done it, 

there are multiple issues within the interbanking transactions, and be in the shoe of SBI for a while, they get thousands of challans every month for posting to NSDL, each challan has to get passed through two officers, 1st by the clearing member, then by the the person who deals with segregating with tax department and to NSDL, 

at the point of last date the traffic is unusually heavy, due to service tax, incometax, ESI, PF, and what not , for all such tax collections most places sbi is only option to pay. 

the cash payments upto 7th of the month has must to be posted on NSDL "within date" alongwith all clear cheques upto the banking hours of 7th of the month, otherwise the party will get penalized. also the NSDL server get hectic busy at end hours , so the bank officers work too late to finish their work by the day.

but when its not effected by the last date, by late payment/ return of cheque/ hold of cheque by clearing house or by the paying bank, the late is already initiated, at the point the banker who is posting the data to NSDL has finished the work of posting to NSDL and now busy to reconcile the data with the collection amount and crediting the same to the concerned departments, which is a mind tiring work within 7th to 14th every month, coz they have to report all such data collectively on account of every govt department and then credit the data partywise to the concerned department.

as once the delay is established they take the next lot only after the finish of the work which is executed "within due date", and here they report 1-2 day late, coz by this lot they have no option to report to NSDL and department separetely but at same time they have to.

keeping a practice to tender the cheque "well before due date may resolve such issues, while online payment of taxes get full satisfaction and correct credit on same date.

Since we are on edge of transformation of manual payment to E payment, so why not we take benefit of these, this will reduce the burden on the banking staff as well as will reduce the percentage of errors for which the parties suffer a lot.

There are hundreds of cases where advance tax paid by cheque on other bank has been credited in wrong PAN, and a remarkable percentage of tax payers has lost their money coz the bank has no authority to correct the same after seven days, and the same is noticed by the assessee after what they have to do ? run door to door to put request to every so called CIT for correction , and face the consequences of non payment?

now back to your case ..................

you have made payment in sept 2011, filed the return in oct 2011, ( by the time of filing return you was well informed about the error done) and making grivance in aug 2012, after 10 months, if brought upright within seven days of stamp then bank had to act with nsdl and maybe they had option to correct the issue with best possible efforts with them, but after 7 days of posting to NSDL they have no authority to amend or revise the same, as the NSDL data has gone public by this time.

either we have to change ourself with change of system with time, or we have to suffer with such issues as we are not ready to give up the old practice, where errors were common.

no harsh feeling, but keeping self to update status is always better option, as it will bypass most general issues.

Aarush (Delhi) (1566 Points)
Replied 30 August 2012

Agree with "U S Sharma".

More on this if we know due date is 07th than why we not deposited it before of 07th ? why we wait till 07th ? Answer is many of we think that we can utlize tds payment money for 6 days {For working capital requirements} and shall pay tds liability it on 07th ... who care that next day can also be a holiday for banks or other offices too.. "Mera kam ho gaya .. tender date 07th mil gayi.. or kya..  

than who will "certify" such intention ... why department lose their money for such holidays ?

Aarush (Delhi) (1566 Points)
Replied 30 August 2012

Sir, Want to add one more point ...

as per your post SBI got credit on 09th Sep 2011 that was friday.. means saturday and sunday holiday

12 the Sep 2011 was Ganesh Chaturthi i.e monday..


Shridhar Shah (Chartered Accountant in Practice)   (172 Points)
Replied 30 August 2012

Dear Sir,

What your original question was, is already been answered.

I would like to refer to service tax provision where, unlike income tax, there is specific provision that you can pay tax by 5th of the month if not using e-payment mode, where as e-payment is acceptable on 6th of the month too. Also any bank transaction after stipulated time is to be considered as payment made on next day.


Now for income tax purpose, you can pay tax in govt. treasury by using Debit Card / Credit Card / Net Banking which need not be pertaining to the person paying tax. Only correct PAN / TAN shall be quoted.


So, in my openion, every assessee who is supposed to pay huge amount of tax, that too every month, shall opt to pay tax through electronic mode to avoid any confusion related to Challan number & Date of payment. You can use anybody's card / net banking account to pay your companies tax & pay that person by cheque. It will not only help overcome such issues, but also reduce administrative work considerably.

gayathri (accounts) (53 Points)
Replied 04 May 2018

Sir, we made the march month tds on 30.04.2017  through online and it was debit in bank on 30th april but in challan the tender date shows 02.05.2017. it may attract any interest for this payment. please reply immediatelly

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