How To

How to make Online TDS Payment – Complete Guide

It’s simple to pay your TDS online. Visit NSDL’s website to search for the challan number in the TDS section. After opening it, you need to enter your personal information and tax details. Continue reading to discover the step-by-step process for making your TDS payment online.

TDS is a specific amount deducted by a person (deductor) when the payment, such as salary, rent, professional fees, etc., exceeds the TDS threshold limit. The person who receives this amount must pay the tax.

The deductor deducts the tax from the source and then gives the rest to the deductee. This guide provides detailed steps for paying TDS online through a comprehensive tutorial.

How to Pay TDS Online?

To make a TDS payment online, go to the NSDL website and select ‘CHALLAN NO./ITNS 281’ in the TDS/TCS section. Now, complete your tax information and send in the form. Next, you’ll be taken to the bank page to complete your payment.

Follow this simple guide to pay TDS online:

Step 1: Visit NSDL’s website or Income Tax software to pay taxes online. Here’s how the website will look.

Step 2: Next, select ‘CHALLAN NO./ITNS 281’ under the TDS/TCS section. After completion, the website will automatically redirect to the e-payment portal below.

Step 3: After opening the portal, input the data from the image and move on to the next step.

Step 4: Next, provide additional information like:

Choose ‘Company Deductees‘ under ‘Tax Applicable‘ if you deducted TDS while paying to an organization. Alternatively, select ‘Non-Company Deductees‘.

Please provide the TAN and the Assessment Year when making the payment.

Fill in your ‘Pin Code‘ and ‘State‘ from the dropdown menu.

Decide if the payment is for TDS deducted and payable by you or TDS on a regular assessment.

Next, select the ‘Nature of Payment‘ and ‘Mode of Payment‘ from the dropdown menu. Next, choose Submit.

Step 5: Once you submit, a confirmation screen will show up. If the TAN is valid, the taxpayer’s full name, according to the company’s master, will be displayed on the screen.

Step 6: Once your data is confirmed, you will be directed to the net banking site.

Step 7: Log in to the bank website using your credentials and proceed with the payment. Once the payment is successful, a challan containing the CIN number, payment details, and the bank name used for e-payment will be generated.

Benefits of Making TDS Payments Online

When you pay TDS online, you don’t have to submit the challan physically; the payment is remitted immediately through your account. Plus, your e-challan will be sent directly to the Income Tax department. Discover the advantages of paying TDS online:

  1. Convenient payment options from any location
  2. Please provide payment receipt promptly.
  3. Mistakes from overwriting are removed.
  4. The e-challan has been forwarded to the Income Tax department.
  5. Payment can be made on behalf of a firm or company.
  6. You don’t have to keep physical records because everything is stored online.
  7. Online payments for TDS are quick and secure.

How to Make TDS Payments Offline?

To pay TDS offline, deductors must submit TDS through challans at their bank branches in person. You can easily download Challan 281 from the online portal and enter the required information.

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After completing the task, they should deposit the TDS amount and the challan at their nearest bank branch. Once you submit the challan, you will receive a counterfoil. This counterfoil can be proof once the bank stamps it for future reference.

When is the deadline for depositing TDS with the government?

After deducting the TDS amount, the deductor must submit it to the government within a specific time frame, known as TDS payment. Here are the due dates for making TDS payments for government assesses and other assesses:

Month of Deduction Due Date for Making TDS Payment
April 7th May
May 7th June
June 7th July
July 7th August
August 7th September
September 7th October
October 7th November
November 7th December
December 7th January
January 7th February
February 7th March
March 30th April for non-government deductors and 7th April for government deductors.

Quarterly Payment Option: Taxpayers can choose to make payments quarterly.

Make TDS payments quarterly after receiving permission from the Assessing Officer. But it requires approval from the Joint Commissioner. Here are the quarterly payment due dates:

For the quarter ending on the 30th of June 7 July
For the quarter ending on the 30th of September 7 October
For the quarter ending on the 31st of December 7 January
For the quarter ending on the 31st of March 30 April

How can I check the payment status of TDS online?

Three ways to track your TDS payment status include using your PAN card, Form 26asm, and net banking. Let’s see how you can check the status of your payment.

How to Check TDS Status Using Pan Card

  1. Visit the NSDL website to pay your taxes online.
  2. Once you’ve entered the verification code, you can continue.
  3. Please provide your PAN and TAN information.
  4. Select the financial year, quarter, and type of return.
  5. Choose the “Go” option to view the TDS status here.

How to Verify TDS Payment Status using Form 26AS

  1. Visit www.incometaxindiaefiling.gov.in/home.
  2. Sign up or log in with your details.
  3. Click on ‘View Form 26AS’ under the ‘My Account’ tab.
  4. Select ‘Year’ and ‘PDF format’.
  5. Get the file
  6. If the file is password protected, it can be accessed using the date of birth associated with the PAN card number.

Are there penalties for late payment and filing returns?

There will be consequences for late TDS payment and return filing. If a deduction is late, a 1% penalty will be charged each month on the outstanding amount. A 1.5% monthly charge will be applied to the outstanding amount if payment is late. Here are the guidelines you need to follow:

1. Interest will be imposed if TDS is deducted but not deposited to the government.

  • 1% per month or its part
  • Regarding the TDS amount and the payment due date
  • Until the return is completed

2. If TDS is not deposited, interest will be imposed for late payment.

  • @1.5%per month or its part
  • Regarding the TDS amount, it should be deposited from the expected date.
  • Up to the date TDS was deposited.

What software is best for making online TDS payments?

Various e-TDS software options are available for preparing and filing TDS returns and generating TDS certificates. You can easily prepare and file multiple forms such as Form 24Q, 26Q, 27Q, 27EQ, 27A/B, 16A, 16, 27D, 12BA, etc. Additionally, you can download your Challan, TDS, Income Tax documents, and more.

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Furthermore, eTDS software can assist with validating PAN and challan details, calculating late payment rates, making corrections to TDS returns, and more.

Here are some top eTDS software options to consider:

  1. ClearTDS
  2. Zen E-TDS Software
  3. Webtel’s Web-e-TDS
  4. CompuTDS
  5. Saral TDS Software
  6. WinTDS

How long do I have to make a TDS payment?

  1. The TDS payment collected by the deductor is due on the 7th of the following month.
  2. The TDS payment is due on April 30th for March of the previous financial year.
  3. Both non-Government and Government assesses who pay tax using Challan (Treasury Challan) qualify for the TDS payment deadline.
  4. The TDS payment due date coincides with the day the tax amount is deducted for government deductors who pay without the challan.
  5. The due date for TDS payment is the 7th of the following month after each quarter ends. The deadline for TDS payment is April 30th for the final quarter of the fiscal year, provided the Assessing Officer has obtained approval from the Joint Commissioner.

When to use TDS

Tax Deducted on Source applies to a person’s salary income and income generated from specific cases:

  1. Dividend
  2. Stocks and bonds
  3. Interests aside from those related to securities
  4. Commission on brokerage earnings and insurance
  5. Providing professional services or technical assistance
  6. Withdrawing from EPF before a set period or exceeding the specified limit
  7. Money won from crossword puzzles, horse races, lottery, or other games.
  8. Payment is sent to contractors, freelancers, or subcontractors.
  9. Revenue from selling real estate

Conclusion

You should know how to make online TDS payments by reading the article. Follow the process correctly to ensure your TDS payment is successful.

Consider using e-TDS filing software to simplify your process by filing and paying TDS directly. Be sure to review the software features and requirements before making a selection.

FAQ

How do I make an online payment for TDS?

Visit NSDL’s website and select “CHALLAN NO./ITNS 281” under the “TDS/TCS” section. Just complete the payment form with the necessary information and submit it, and you’ll be directed to your bank’s net banking page. Fill in your bank details on the page, make the payment, and your TDS will be paid afterward.

How do I check my TDS status online?

You can check your TDS status online using your PAN Card using TDSCPC, Income Tax e-filing website, and net banking. Please provide the PAN details of the individual who deducted TDS from payments, along with the TAN of the deductor for all of these transactions.

Do I need a TAN for online TDS payments?

Section 203A of the Income Tax Act 196 makes it mandatory to include Tax Deduction Account Number (TAN) on all TDS returns and on all TDS payment challans and certificates.

What happens if I pay my TDS late?

If TDS is paid late, a penalty under Section 234E will be charged. The penalty is INR 200 until the TDS is paid. Keep in mind that the penalty cannot exceed the TDS amount.

How do I find my TDS account number?

You will receive the Tax Deduction Account Number (TAN) from the Income Tax Department of India. Anyone deducting TDS needs to get a TAN number.

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