TDS Online Payment

Last Updated : April 5, 2021, 5:09 p.m.

TDS stands for Tax Deducted at source in which a company or a person has to deduct tax at source while making payment and it has exceeded the threshold limit. The Income Tax Department decides the Rate of TDS. The person who deducts the tax at the source is known as the deductor and the person who is receiving the deducted payment is known as the deductee. After deducting the tax at the source, the deductor deposits the amount to the government. The tax is deducted at the time of making payments like commission, rent, interest, etc. But you must be aware of the process of making TDS Online Payment. So, you can explore the steps involved in the execution of this task.

Process of Making TDS Payment Online

It is the responsibility of the deductor to deposit the TDS amount to the government and you can do that online. You will just have to follow the steps to make the online payment of the taxes you have deducted at the source at the time of making the payment.

• Go to the Official Website of NSDL for making e-payment of TDS.
• Under the TDS/TCS section select the CHALLAN NO./ITNS 281 option.
• Now you will be redirected to the E-payment page .
• On the E-Payment Page, Select Company Deductees under the Tax Applicable head if you have deducted TDS while making the payment to the company.
• Select the Non-Deductees option under the Tax Applicable head if you haven’t deducted TDS while making a payment to the company.
• Now enter the TAN and the Assessment Year for which you are making the payment.
• Provide the Pincode and then Select the State from the dropdown menu.
• Then select whether the payment is made for TDS Deducted and Payable by you or TDS on regular assessment.
• Now choose the Nature of Payment and the Mode of Payment from the dropdown menu.
• After filling the e-payment form of TDS, click on the Submit Button.
• Now, you can see the confirmation of the submission on your screen and it will include the full name of the taxpayer as per the master if the TAN is valid.
• Then the Net Banking site of your bank will open after the confirmation of the data you have entered.
• Then the taxpayer should log into the net banking site through user I.D. and password and make TDS Online Payment.
• After a successful online payment, you will see a challan counterfoil on your screen.

Points to Remember

• The counterfoil you have received in the end will be proof that you have made the TDS Online Payment.
• The counterfoil will include CIN that is the Challan Identification Number.
• It will also include the details of the payment and the name of the bank through which you have made the payment.
• It is mandatory to have a TAN that is the Tax Deduction Account Number.
• The Income Tax Department allot TAN to the deductor.
• If the company is deducting tax at the source then he will have to make the TDS Payment.

Conclusion

Well, it is an easy process to make TDS Online Payment. You will just have to follow the simple steps mentioned above in this article and the payment will be done easily. Make sure that you have a TAN while you are making the payment of TDS online. The deductor is liable to deposit the amount collected through TDS to the government and you can do that through the NSDL official website.