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How to make the TDS Payment Online: A Step by Step Guide
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:-
- Deduction or collection of tax at source (TDS / TCS)
- Direct payment by an assessee, i.e., Advance tax/self-assessment tax.
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.
How to make the TDS payment online?
- Search on Google for TDS payment online, and you will be shown results as under
- Step 1: Go to NSDL website for e-payment of taxes. An image as shown under 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 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 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 detail of payment, CIN, and bank name through which payment has been made.
How to make the TDS payment offline?
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.
What are the Advantages of Online TDS Payment?
- Feasibility to make payment from anywhere
- There is no time constraint
- No physical visit; hence 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
- Avoid mistakes like overwriting
- Faster and secure
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:
|Month of Deduction||Due Date for Making TDS Payment|
|March||30th April for non-government deductors and 7th April for government deductors.|
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.
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 as well as the quarter and the type of return.
- Click on 'Go'; the TDS status can be checked here.
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.
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 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:
|Total no. of days of delay||15 days|
|Amount of TDS||2,500|
|Penalty u/s 234 E (Penalty or TDS amount, whichever is lower)||2,500|
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 has not been deposited to the government.
Frequently Asked Questions
Q- How can I pay TDS online?
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.
Q- How can I pay TDS on demand online?
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.
Q- How can I check my TDS status online?
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.
Q- How can I check my 26 AS online?
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.
Q- Can I download my form 16 online?
Form 16 can only be issued by your employer. It cannot be downloaded from the Traces website using a PAN number.
Q- How can I check 26as in net banking?
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.
Q- How can I download 26as from traces website?
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