Here is a guide for making TDS Payment online:
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: Login to the e-filing portal using TAN login credentials.
Step 2: On the dashboard, click ‘e-File’ > ‘e-Pay Tax’.
Step 3: On the e-Pay Tax page click on the ‘New Payment’.
Step 4: On the New Payment page, click on ‘Proceed’ on a tax payment tile that is applicable.
Step 5: Select the Assessment Year and fill other details and click on ‘Continue’.
Step 6: Add the breakup of the total tax payment on the ‘Add Tax Breakup Details’ page.
Step 7: On the payment page select the preferred payment gateway ancd click on ‘Continue’.
Step 8: Verify the details and click on ‘Pay Now’.
Step 9: You will receive a confirmation email and sms on your email and mobile number which is registered with e-filing portal
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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
- TAN/PAN
- 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.
Advantages of Online TDS Payment
1. You can pay taxes anytime and from your net-banking account.
2. The TDS amount gets transferred instantly through your account.
3. Online TDS payments to the income tax department will avoid the errors made by the bankers
4. You can save/print the challan and the counterfoil generated from your 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.