Confused About TDS Deposit for Contractual Staff? Need Help with Forms, Codes, and Deadlines

Hello,

We are a small startup, and we have hired staff on a contractual basis. Therefore, we are deducting TDS at 10% as professional fees. Now, we need to deposit the TDS we have deducted, but we are unsure about which challan or form to use for the deposit. We kindly request those with knowledge in this area to guide us on the appropriate form or challan to use for TDS deposit. Is it CHALLAN NO./ITNS 281, Form 26QD, or some other challan? The monthly salary amounts to approximately Rs 40,000, with TDS totaling Rs 4,000 per month.

If the answer is challan 281, what code should we select under the nature of payment? Is it 94J? Additionally, which option should we choose for Tax Applicable - (0020) Company Deductees or (0021) Non-Company Deductees?

For the Type of Payment, should we select (200) TDS/TCS Payable by Taxpayer or (400) TDS/TCS Regular Assessment?

Lastly, what is the due date for depositing the tax? We processed TDS for January's salary on February 1 when the January salary was paid. Therefore, is the due date for TDS deposit February 7 or March 7? Are there any other essential details we should be aware of?

Thank you.

TDS for Contract Work: Sections and Rates

Request you to discuss the issue with your Auditor/Chartered Accountant, as TDS for contract work has two sections - 194C and 194J, each with a different rate depending on the nature of the contract in force.

TDS Compliance: Due Dates and Responsibilities

The monthly TDS due dates, the challan to be used, and the quarterly return submission dates of the TDS calendars are handled by the CA only.

Now, remittance of TDS to the government account has become very easy and quick through ONLINE by linking your Netbanking account. If you have your Netbanking ID, login password, and transaction IDs, it can be done in a few minutes.

Understanding TDS Categories

Based on your description, it appears your TDS will fall under 94C (1% if the deductee is a Proprietor or 2% for Partnerships & Companies). 94J is for Professional advice, Tech. services/assistance, etc., at 10%.

Step-by-Step Compliance Instructions on the Net Banking Portal

Here are the step-by-step compliance instructions on the Net banking portal of your bank's website:

1. Open the portal
2. Log in
3. Select Direct or Indirect Tax
4. Choose Co-user or Others
5. Select TDS
6. Choose the bank name and account
7. Enter the Assessment Year
8. Input PAN and TAN No.
9. Verify if your firm's name is displayed
10. Enter the amount of TDS to be remitted
11. Submit to the bank
12. Verify bank account number and your latest logged-in details
13. Enter your login and transaction password
14. Submit
15. Your paid challan will be displayed. Click on the PDF format to print and keep a copy for your records. This concludes the process. Use these details for filing your IT - TDS Quarterly Returns.

Due Dates Information

For information on due dates, please refer to the links provided for the next few months:

https://eztax.in/tax-compliance-calendar-it-tds-gst-roc