How to make the TDS Payment Online: A Step by Step Guide

In this blog, we will take an in-depth understanding of how to make TDS payments online.

How to make the TDS payment online

Follow the below steps to make TDS payment online:

• Step 1: Go to the NSDL website for e-payment of taxes. An image, as shown below will open up
  
• Step 2: Scroll down to find PAY TAXES ONLINE and choose “Click to Pay Tax Online”
  
• Step 3: A screen as shown under will appear
  
  
• Step 4: Fill in the following details -
  • Under Tax Applicable, select either the company deductees or the Non-company deductee. The company deductee needs to be selected if you have deducted TDS on the payment to be made to a corporation.
  • In the type of payment, select the category of TDS in which you want to pay TDS, i.e., TDS payable by the taxpayer or under Regular assessment.
  • Select the nature of payment, like the interest of payment, dividend, etc.
  • Choose the payment mode: Net banking/debit card, etc.
  • Enter the Tax deduction Account No. and select the Assessment year
  • Mention the address along with the district, state, and pin code.
  • Enter the Captcha and click Proceed.
  • After proceeding, a confirmation screen will be displayed. If TAN is valid, the full name of the deductor as per the master will be displayed on the confirmation screen.
  • After confirmation of the data entered, you will be directed to the net banking site.
  • Once successful payment is made, a Challan will be displayed containing the details of payment, CIN, and bank name through which payment has been made.

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How to make the TDS payment offline

For the offline process, deductors need to deposit TDS by physically submitting the challans at the bank branches. The deductors can download Challan 281 online and complete 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.

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What are the Advantages of Online TDS Payment?

• Feasibility to make payment from anywhere
• There is no time constraint
• No physical visit; hence, there is no pain of standing in queue.
• Can pay on behalf of firm, company, and others
• Get immediate acknowledgment of payment
• The e-challan is sent to the Income Tax department
• Saves time and money
• No need to maintain physical records, and it avoids mistakes like overwriting.
• Faster and secure

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What is the due date for depositing the TDS amount with the government?

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:

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How to track the status of Online TDS Payment

To know the TDS payment status online, you can check it through PAN, Form 26AS, or through the net banking portal.

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Steps to check TDS status by Pan Card

• Visit www.tdscpc.gov.in/app/tapn/tdstcscredit.xhtml or Go to NSDL’s website for e-payment of taxes.
• After typing the verification code, proceed.
• Enter the PAN and TAN details.
• Select the FY quarter and the type of return.
• Click on 'Go'; the TDS status can be checked here.

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Steps to check TDS payment status by Form 26as

• Visit www.incometaxindiaefiling.gov.in/home.
• Register yourself if you do not have credentials
• If you are already a registered user, log in using the credentials.
• Click on 'View Form 26AS' in the' My Account' tab.
• Select 'Year' and 'PDF format.'
• Download the file.
• If the file is password protected, it can be accessed by the Date of Birth as per the PAN card.

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What is the Penalty for Delayed Payment & Late Return Filing?

Section 201(1A):- Late deduction or Late payment of TDS

• Late Deduction: If TDS is deducted but not deposited to the government, then, in that case, interest will be levied
  • @1% per month or its part.
  • On the amount of TDS from the date on which TDS was supposed to be deducted
  • To the date of furnishing the return.
• Late Payment: In case TDS has not been deposited, then, in that case, interest will be levied
  • @1.5%per month or its part
  • On the amount of TDS from the date on which TDS was supposed to be deposited.
  • To the date on which TDS was actually deposited.

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 penalty amount 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:

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:

• - In case no TDS return has been filed before the expiry of a period of one year from the due date and
• - TDS deducted, late filing fees & interest amount have not been deposited to the government.

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