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TDS or Tax Deduction at Source is the specific amount deducted by a person (deductor) when a certain payment, like salary, commission, rent, interest, professional fees, etc., exceeds certain threshold limits. The person who receives this payment (deductee) is responsible for paying this tax. The deductor deducts the tax at the source and then pays the remaining to the deductee.
The deducted TDS amount is remitted to the government. The deductee can check the Deducted (TDS) amount at source in Form 26AS or the TDS Certificate issued by the deductor.
Tax is collected in two modes:-
Suppose Mr. A has won a lottery for an amount of Rs 1,00,000. TDS on the same needs to be deducted at the rate of 30%. In this case, the amount given to Mr. A would be Rs 70,000 (Rs 1,00,000 – 30%) and not 1,00,000. Since the tax has been deducted before rendering the income in the hands of the receiver, it is known as Tax Deduction at Source.
The TDS so deducted needs to be deposited by the deductor to the government within the fixed time frame. The TDS payment can be made online or offline.
In this blog, we will take an in-depth understanding of how to make TDS payments online.
For the offline process, deductors need to deposit TDS by submitting the challans physically at the bank branches. The deductors can download Challan 281 online and fill in all the required details. After this, they have to deposit the TDS amount and the challan to the nearest bank branch. Counterfoil will be provided once the challan has been submitted. Counterfoil can be used as proof after being stamped by the bank for the future course of action.
After deducting the TDS amount, the deductor has to deposit this amount with the government within a specified time, which is called making a TDS payment. The due dates for remitting TDS (or making TDS payment) for government assessees and other assessees are as follows:
| 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. |
To know the TDS payment status online, you can check it through PAN, Form 26AS, or through the net banking portal.
Section 201(1A):- Late deduction or Late payment of TDS
Section 234E:- Late fee for default in the furnishing of TDS/TCS returns within the due date
The penalty under this section is Rs. 200 per day. The penalty shall be calculated till the failure continues by the deductor. However, the amount of penalty cannot be more than the amount of TDS for which the return is required to be filed. Let’s say ABC is required to file his TDS return for Q2 (July - September), for which the due date is 31 October, and ABC filed his return for Q2 on the 15th of November. In this case, the total amount of TDS for which the return needs to be filed is Rs. 2,500.
Here’s an example:
| Particular | Amount (Rs.) |
|---|---|
| Total no. of days of delay | 15 days |
| Penalty (15*200) | 3,000 |
| Amount of TDS | 2,500 |
| Penalty u/s 234 E (Penalty or TDS amount, whichever is lower) | 2,500 |
Section 271H:
Under this section, the Assessing officer can levy a penalty ranging from Rs. 10,000/- to Rs.1,00,000/-. The cases attracting penalty under section 271H include:
The TDS amount must be deposited by the person deducting the TDS to the government within the due dates specified. The TDS payment can be made online. Go to NSDL’s website. Select ‘CHALLAN NO./ITNS 281’ under the TDS/TCS section. Fill in the challan details and select submit. After that, it will be redirected to the net banking page, and then log in with your net banking credentials provided by the bank and make the payment.
To check TDS demand online, go to the traces login portal, log in to your traces account, go to the default tab and select view default summary from the drop-down list. From where you can check the amount of demand and reason for demand. However, to pay demand online, you have to pay demand through challan ITNS 281, and then you are required to file a correction statement to remove the demand.
Login to https://incometaxindiaefiling.gov.in/. Go to the ‘My Account’ tab and click on View Form 26AS (Tax Credit). Select the year and PDF format to download the file and proceed further. Open the downloaded file. After opening Form 26 AS, you will get information regarding the total income on which TDS is deducted and TDS credited to your account.
Login to the Income tax e-filing portal and click on the ‘My Account’ tab >Form 26AS (Tax Credit) > year and PDF format to download Open the downloaded file to view Form 26AS.
Form 16 can only be issued by your employer. It cannot be downloaded from the Traces website using a PAN number.
This facility is available to a PAN holder having a net banking account with any of the authorized banks. View of Form 26AS is available only if the PAN is mentioned to a particular account. Open your Internet banking account and select Form 26AS.
Login to the traces website with User ID, Password, and Captcha. Go to My Account and then select “View Form 26AS (Tax Credit)” from the drop-down list
