A Step-by-Step Guide to Making TDS Payment Online TAXCONCEPT

TDS or Tax Deduction at Source is a system where tax or TDS gets deducted and TDS payments happens online. The tax deduction is at the time of making some payments like rent, interest, commission etc. The person making such specified payments is responsible for deducting the TDS and making TDS payment and paying the balance amount to the person entitled to receive such payment.

The complete list of such specified payments along with the rate of TDS to be deducted can be accessed in TDS rate chart.

The TDS amount deducted must be deposited to the government within the due dates specified by the person deducting the TDS. The procedure to make TDS payment online is:

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.

TDS payment online challan 281

Step 3: In this page the following details have to be entered

TDS payment online challan 281

TDS payment online challan 281

1. Under ‘Tax Applicable’ select ‘Company Deductees’ if the TDS deducted by you is while making payment to a company. In any other case select ‘Non-Compay Deductees’.

2. Enter the TAN and Assessment Year for which the payment is made.

3. Enter the ‘Pin Code’ and select ‘State’ from the drop down.

4. Select whether the payment is made for TDS deducted and payable by you or TDS on regular assessment.

5. Select the ‘Nature of Payment’ and ‘Mode of Payment’ from the drop-down.

6. Click on ‘Submit’ button.

Step 4: On submission, 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.

Step 5: On confirmation of the data entered, you will be directed to the net banking site of your bank.

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.

Step 7: On successful payment, a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been madeThis counterfoil is a proof of the payment made. After payment of TDS, you have to file your TDS return. 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

The person can make an online TDS payment if the tax deductor has a net-banking facility with any banks authorised to collect taxes.

How to check the status of online TDS Payments?

The taxpayer can check the TDS deposit status online. To check the TDS deposit online, go to TIN-NSDL Oltas challan status Inquiry. There are two ways to search the challan status of TDS payment.

1 – CIN Based View

On entering the challan details, such as the BSR code of collecting branch, challan date, challan serial number, and amount (optional), the taxpayer can view the following details:

  • 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 :

By providing TAN and challan date range for a particular financial year, the taxpayer can view these details:

  • CIN
  • Major Head Code with description
  • Minor Head Code
  • Nature of Payment

If the taxpayer enters the amount against a CIN, the system will confirm whether it matches the details of the amount reported by the bank.

What happens if you delay in payment of TDS?

If any person deducting tax at source fails to deposit the whole or any part of the tax to the income tax department, then such person shall be liable to pay simple interest on the TDS.

Interest at 1.5% will be payable for every month or part of a month on the TDS amount from the TDS deduction to the date of the TDS payment to the income tax department.

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