TDS, or Tax Deduction at Source, is a system in which taxes are deducted and payments are made online. Some payments, such as rent, interest, commission, are tax deductible. Deducting TDS and making TDS payments is the responsibility of the person making such payments, and paying the balance amount to the person entitled to receive it. A TDS amount deducted must be deposited to the government within the due dates specified by the person deducting the TDS. Online TDS payments are made as follows:
How to Make TDS Payment
Step 1: Go to NSDL’s website for e-payment of taxes
Step 2: Select ‘CHALLAN NO./ITNS 281’ under TDS/TCS section. You will be directed to the e-payment page.
Step 3: In this page the following details have to be entered
- Whenever TDS is deducted from a payment to a company, select ‘Company Deductees’ under ‘Tax Applicable’. Select ‘Non-Compay Deductees’ in any other case.
- Input the TAN and Assessment Year for which the payment is being made.
- Select the ‘State’ option after entering the ‘Pin Code’.
- Whether you are paying for TDS deducted and payable by you or TDS on regular assessments is selected.
- The drop-down menus allow you to select the ‘Nature of Payment’ and ‘Mode of Payment’.
- Then click ‘Submit’.
Step 4: A confirmation screen will appear after submission. On the confirmation screen, the taxpayer’s full name will be displayed if TAN is valid.
Step 5: Your bank’s net banking site will be displayed after you confirm the data entered.
Step 6:The taxpayer should log in to the net banking site with the user id and password provided by the bank and make the payment.
Upon successful payment, a challan counterfoil will be displayed with the CIN, payment details, and bank name used for the e-payment. Upon successful payment, a challan counterfoil will be displayed with the CIN, payment details, and bank name used for the e-payment. TaxCloud – ClearTDS is a cloud-based TDS filing software. This means that you do not have to download anything on your machine. You can access TDS data from anywhere, anytime.You can create your FVU file in minutes!
Due Date for TDS Online Payment
Non-government tax deductors can deposit TDS online for:
1 – Tax deducted for the months April to February – by the 7th of the following month
2 – Tax deducted in March – by the 30th of April
For example, if you deduct tax in July, the TDS amount can be deposited by the 7th of next month, i.e. by the 7th of August.
In case of tax deducted on purchase of immovable property, the time limit for TDS deposit is the 30th of the following month in which the property is purchased.
For example, if you purchase the property in June, TDS can be deposited by the 30th of July.
Applicability of Online Payment
Those who have net-banking facilities with banks authorised to collect taxes can make an online TDS payment.
How to check the status of online TDS Payments?
TDS deposit status can be checked online by taxpayers. Check the TDS deposit status online at TIN-NSDL Oltas challan status inquiry. It is possible to search for the status of TDS payment challans in two ways.
1 – CIN Based View
Upon entering the challan details, such as the BSR code of the collecting branch, the challan date, and the challan serial number, the taxpayer can see the following information:
- Challan serial number
- Date of deposit
- BSR code
- Major Head Code with description
- Name of taxpayer
- Receipt date by TIN
- Amount confirmation, if it is entered (correct or not)
2 – TAN based view :
TAN and challan date ranges for a particular financial year can be viewed by taxpayers as follows:
- Major Head Code with description
- Minor Head Code
- Nature of Payment
When the taxpayer enters the amount against a CIN, the system will confirm that it matches the amount reported by the bank.
Advantages of Online TDS Payment
- You can pay taxes anytime and from your net-banking account.
- The TDS amount gets transferred instantly through your account.
- Online TDS payments to the income tax department will avoid the errors made by the bankers
- You can save/print the challan and the counterfoil generated from your bank.
What happens if you delay in payment of TDS?
People who deduct tax at source will be liable to pay simple interest if they fail to deposit the full amount to the income tax department.
The TDS amount will be subject to interest at 1.5% for every month or part of a month between the date of deduction and the date of payment.