How to deposit Dividend Distribution Tax

Process to deposit “Dividend Distribution Tax (DDT)”

Do’s
i. Use challan type 280 for payment of dividend distribution tax.

ii. Quote the correct Permanent Account Number (PAN) and name & address on each challan used for depositing the tax. PAN is a unique 10-digit alphanumeric number allotted by ITD to all taxpayers.

iii. Use Separate challans to deposit taxes for each of the above-mentioned tax and indicate the relevant code (for example 100 for advance tax, 300 for self assessment tax).

Don’ts
i) Do not use incorrect type of challan.

ii) Do not make mistake in quoting PAN / TAN.

iii) Do not give PAN in place of TAN or vice versa.

iv) Each branch / division of an entity will have a separate TAN if it is filing separate TDS/TCS returns. However, there will be only one PAN for a legal entity.

v) Do not use a single challan to deposit tax deducted under various sections.

vi) Do not use a single challan to deposit tax deducted for corporate and non corporate deductees.

vii) Do not use same challan for depositing various types of tax like advance tax, self assessment tax etc.

viii) Do not make mistake in the F.Y. and A.Y. to be indicated in the challan.

ix) If you have multiple TANs for the same division filing TDS statements, do not use different TANs in different challans. Use one consistently and surrender the others.

x) Do not use the preprinted Challans you receive without verifying whether the TAN / PAN quoted in these challans belongs to you. You can verify the same from the allotment letter you have received from NSDL or from ITD website.

One Response

  1. Aravind R Dec 1, 2016

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