The Tax Deducted at Source or TDS is the tax amount which is deducted by the responsible deductor and paid on behalf of the assessee to the tax department. The deductor is required to remit the TDS amount to the government within a stipulated deadline. This TDS payment can be made online.
Procedure for Making TDS Payment online
The payment of TDS or Tax Deducted at Source can be made online through the NSDL’s official website. The process of e-payment is discussed below.
Step 1: Visit the official website of NSDL (http://www.tin-nsdl.com) > Services > e-payment. On the main page click on ‘Click to pay tax online’.
Step 2: From the list of applicable challans which appears on the home page of the website, click on the ‘CHALLAN NO./ITNS 281’ option.
Step 3: You will be directed to a separate page where you will have to fill in the details as required.
Step 4: The user will be redirected to a new webpage as shown below. In this page, the details pertaining to the tax applicability, the Tax Deduction Account Number (TAN), the Assessment Year (AY), the Pin Code and State, the payment mode, and the type of payment are to be filled up. Once all the fields have been filled up, the user will be required to fill in the Captcha code and click on the ‘Proceed’ button.
Step 5: Once the form is submitted, the TAN will be verified. On successful verification, the taxpayer’s full name will be prompted on the screen.
Step 6: After the user confirms the data, he/she will be redirected to the net banking website of the bank.
Step 7: The user will be required to log in to his/her internet banking profile and make the payment of TDS.
Step 8: After the successful payment, a counterfoil challan will be generated and displayed on the screen. This challan will have the Corporate Identity Number (CIN) and details pertaining to the payment and the name of the bank through which the payment was made. This challan can be saved for future reference.
Due Date for TDS Online Payment
The deadlines for the payment of TDS are different for government assessees and other assessees. The due dates are listed below:
- Due date or deadline for TDS Payment for Government assessees: The due dates for payment of TDS for Government assessees are as follows:
|For the remittance of taxes without challan||The day of deduction|
|For the remittance of taxes with challan||7th of the following month|
|Taxes charged on perquisites which are remitted by the employer||7th of the following month|
- Due date or deadline for TDS Payment for all other assessees: The due dates for payment of TDS for all other assessees except Government employees are as follows:
|Taxes which are deductible in the month of March||30th April of the following year|
|Taxes which are deductible in the other months||7th of the following month|
- Quarterly payment option: The taxpayers can be permitted by the Assessing Officer to make TDS payments on a quarterly basis. However, this can be done only with the approval of the Joint Commissioner. The due dates for quarterly payments are as follows:
|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|
Applicability of TDS Payment
- You must note that TDS can only be deducted when the total taxable income is above total taxable limit. If the amount is below the taxable limit then no TDS will be deducted.
- As per the Income Tax Department, different threshold levels are specified for different types of payments such as interest, salaries, etc. For example, no TDS will be deducted if the interest received on fixed deposit is less than Rs.40,000.
How to check the status of online TDS Payment?
You can check the status of your TDS by following the steps given below:
- Visit www.tdscpc.gov.in/app/tapn/tdstcscredit.html
- Type in the verification code and click on ‘Proceed’.
- Provide the details of your PAN and TAN.
- Select the financial year followed by quarter and type of returns.
- Click on ‘Go’. You will be able to check the status of your TDS.
Another way through which you can check the status of your TDS is:
- Visit www.incometaxindiaefiling.gov.in/home
- If you are a new user then register yourself. If you have already registered, login to the portal by providing your login credentials.
- Go to ‘My Account’, under which click on ‘View Form 26AS’.
- Select the year and PDF format, and download the file. The file is password protected where your date of birth will be your password. If you date of birth is 7 June 1991 then your password will be 07061991.
You can also use the net banking facility to view the status of your TDS payment. However, your PAN must be linked to your net banking portal in order to view the status of your TDS payment.
Advantages of Online TDS Payment
Listed below are the advantages of online TDS payment
- Can make payment from anywhere
- Facility is available 24 x 7
- Need not submit physical challan
- Can pay on behalf of firm, company, and others
- Get immediate acknowledgement of payment
- The e-challan will be sent directly to the Income Tax department
What happens if you delay in payment of TDS?
In the case of delay in TDS payment due to non-deduction of tax at source, an interest of 1% per month is charged on the due amount. This interest is charged from the date on which the tax was deductible to the date when the actual deduction is made.
In case of delay in TDS payment after the deduction of tax at source, an interest of 1.5% per month is charged on the due amount. The interest is charged for every month or every part of the month during which the payment is delayed. The rate of interest is charged from the date of deduction of the tax amount.
TDS Payment FAQs
- Who should pay TDS?
- How can I get my TDS account number?
- Is the TDS certificate mandatory?
- What is the penalty for late TDS payments?
- What is a short payment in TDS?
Any individual who is required to make payments as per the Income Tax Act will have to deduct TDS when he/she makes the specified payment. However, in case the individual’s books need not be audited, TDS will not be deducted.
The Tax Deduction Account Number will be provided by the Income Tax Department. All individuals who deduct TDS are required to obtain the TAN.
In the case of taxpayers, it is mandatory for the certificate to be issued.
In the case of late payments, a fine of Rs.200 will have to be paid per day until the returns are filed.
Short payment is an error that occurs because of PAN errors, wrong quotations, and deduction mistakes.