The assessee is required to pay the taxes on his income. Tax is collected by two modes:
- Deduction or collection of tax at source (TDS / TCS)
- Direct payment by assessee i.e. Advance tax/ self- assessment tax.
In this blog, we will take an in-depth understanding on how to make TDS payment.
TDS or Tax Deduction at Source is the amount of tax already deducted from the income of a person before the income is transferred in the hands of the receiver. Consider this example for a better understanding,
Suppose Mr. A has won a lottery for an amount of Rs 1,00,000. TDS on the same needs to be done at the rate of 30%. Now, in this case, the amount that would be 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 hands of the receiver it is known as Tax Deduction at Source. If no TDS provisions would have been levied then, MR. A would have received Rs 1,00,000 and later on paid Rs 30,000 (Rs 1,00,000 * 30%) to the government himself.
The TDS so deducted needs to be deposited by the deductor to the government within the fixed time frame. The payment can be done
- Online and
The deductor needs to select and fill up the applicable challan form and present the same to the bank with counterfoil of the challan along with the amount required to be paid. Counterfoil will be used as a proof on being stamped by the bank after the challan and payment is accepted, for the future course of action.
But, to the relief and ease of taxpayers, the government has given the online facility. TDS challan payments can be made at the convenience of your place and time. Know below the detailed step by step process on how to make TDS payment online.
Deduction or collection of tax at source (TDS/TCS)
Scheme of TDS is the deduction of tax by the payer from the income of the recipient. It is governed by section 192 to section 196D.
TDS or Tax Deduction at source is a system whereby the income tax is deducted at the time of making payment like rent, interest, etc.
- Search on google for TDS payment online and you would be shown results as under
- Go to NSDL website for e-payment of taxes. An image as shown under will open up
- Scroll down to find PAY TAXES ONLINE and choose “Click to Pay Tax Online”
- A screen as shown under will appear
- Select the challan in which you are required to make payment.
- You will be directed to the challan page. For challan 281 enter the following details
- Under Tax Applicable select either the company deductees or Non-company deductee. Company deductee needs to be selected if you have deducted TDS on the payment to be made to a corporate.
- 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 mode of payment: 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 code and click on proceed button.
- After proceed, a confirmation screen will be displayed. If TAN is valid, the full name of the taxpayer 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 detail of payment, CIN, bank name through which payment has been done.
|Challan / Form No||Payment Purpose|
|Challan 280||Advance tax,Tax on regular assessment, Surtax,Tax on distributed profits of domestic company and tax on distributed income to unit holders|
|Challan 282||Payment of STT, Estate tax, Wealth tax, Gift tax, Interest tax, Expenditure/other tax, and Commodities transaction tax|
|Challan 283||Payment of banking cash transaction tax (BCIT) and Fringe benefits tax (FBT)|
|Challan 285||Payment of Equalization levy|
|Challan 286||Payment under income declaration scheme, 2016|
|Challan 287||Payment under Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY)|
|Form 26QB||TDS on property|
|Demand payment on property(26QB)||Payment of demand raised by CPC -TDS against TDS on sale property|
|Form 26QC||Payment of TDS on sale of property|
|Demand payment on rent of property(26QC)||Payment of demand raised by CPC -TDS against TDS on rent of a property|
Frequently Asked Questions
Q- How can I pay TDS online?
Ans: The TDS amount deducted must be deposited to the government within the due dates specified by the person deducting the TDS. The TDS payment can be made online. Go to NSDL’s website. Select ‘CHALLAN NO./ITNS 281’ under TDS/TCS section. Fill the challan details and select submit. After that, it will be redirected to net banking page and then login with your net banking credentials provided by the bank and do the payment.
Q- How can I pay TDS on demand online?
Ans: To check TDS demand online , go to traces login portal, login to your traces account, go to default tab and select view default summary from drop down list. From where you can check the amount of demand and reason of demand.However to pay demand online, you have to pay demand through challan ITNS 281 and then you are required to file correction statement to remove the demand.
Q- How can I check my TDS status online?
Ans: Login to https://incometaxindiaefiling.gov.in/. Go to ‘My Account’ tab and click on view Form 26AS (Tax Credit). Select 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 total income on which TDS is deducted and TDS credited to your account.
Q- How can I check my 26as online?
Ans: Login to https://incometaxindiaefiling.gov.in/. > ‘My Account’ tab >Form 26AS (Tax Credit) > year and PDF format to download Open the downloaded file to view Form 26AS.
Q- Can I download my form 16 online?
Ans: Form 16 can only be issued by your employer. It cannot be downloaded from Traces website using PAN number.
Q- How can I check 26as in net banking?
Ans: This facility is available to a PAN holder having net banking account with any of authorised banks. View of Form 26AS is available only if the PAN is mentioned to particular account.Open your internet banking account and select Form 26AS.
Q- How can I download 26as from traces website?
Ans: Login to e-Filing website with User ID, Password, Date of Birth /Date of Incorporation and Captcha. Go to My Account and then select “View Form 26AS (Tax Credit)” from the drop down list
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