Online TDS Payment

Complete Guide for Online TDS Payment

Find a complete guide to online TDS payment. TDS is tax deducted at source wherein, income tax is deducted from the salary of employees. Under the tax deducted at source mechanism, income tax is collected from salaried people by the employer or tax deductor.

The employer deposits the tax deducted into the income tax department on behalf of the employees. Tax deducted at source ensures timely and efficient income tax collection and reduces risks of tax defaults for the government. Regular tax deducted at source is extremely significant at the time of tax audits. It is mandatory for all assesses liable for a tax audit. Online TDS payment can be done with the prescribed banks or online. We have discussed here how to make online TDS payment.

The due date is the 7th of the month for the payment of TDS for all months from May till March. For the TDS payment of March month, the due date is 30th April. For example, the due date for the TDS payment of January month is 7th of February. Due dates for payment of tax deducted for the month can be checked at income tax portal. Select the month for which you want to know the due dates. The income tax calendar at this page will also show you due dates for furnishing challan and statements for TDS payment. All tax deductors need to have 10 digit TAN number to deduct tax. A valid TAN registration is required before TDS online payment. Online TDS payment is a few minutes process to be carried out at e-Tax payment portal. Follow the appropriate link and guidelines for online TDS payment. Any company that makes a payment is required to deduct tax before the payment is made.

online tds payment

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How to pay income tax online

Download income tax return form

Procedure for Online TDS Payment [E Payment]

Click the below link and follow step-by-step guidelines to pay TDS online:

  1. Visit the e-Payment income tax department page using above link.
  2. Select the challan no. ITNS 281 for online TDS payment.
  3. At the onset, enter your TAN number.
  4. Also, select the assessment year.
  5. The system will check the validity of your TAN number.
  6. If your TAN is valid, you can proceed further to fill up challan details.
  7. You need to fill up details like name, address, mobile number, e-mail address.
  8. Also, select the bank through which you are paying TDS.
  9. Click on proceed and submit the data.
  10. Once you submit, the confirmation screen will appear.
  11. You need to confirm the all the data entered in the challan after checking it properly.
  12. After your confirmation, you will be re-directed to the net-banking page of your bank.
  13. The taxpayer now has to login the net banking page and make the payment.
  14. After a successful online TDS payment, the system will display a challan counterfoil. The challan will contain CIN – challan identification number. It will also show the bank name and TDS payment details.

After a week of your TDS online payment, you can check the challan status at the NSDL portal.

how to pay tds online

After the e-payment of TDS with income tax department, the tax deductor has to issue a TDS certificate. The employer has to issue Form 16 or Form 16A on an annual or on a quarterly basis.

If you face any issue while filling up data while online payment of TDS, contact the below number. You can also send an email for any issue related to e-payment of TDS.

For any issue at net banking page, contact your banker for assistance.

Interest on Late Payment of TDS

The late payment and short payment of TDS is chargeable by income tax department of India. Following are the rates of interest on late payments:

  • Rate of Interest when TDS is not deducted

1% interest per month or part thereof is charged for the period from the date when TDS is deductible till the date on which it is actually deducted

  • Rate of interest when TDS is deducted but not paid

Interest at the rate of 1.5% per month or part thereof is charged. It is charged for the period from the date of TDS deduction till the date on which TDS is actually paid to IT department.

If you are updated on all due dates and procedure of e-payment of TDS, you can avoid any delays and shortcomings. Also, refer to our post on online income tax payment. Check the status of online TDS payment and income tax return online. We have discussed the procedures through separate posts. We are an independence portal dedicated to guiding tax payers and tax deductors. Keep visiting us for any information on income tax payment refund, IT return payment and TDS payment. Feel free to leave your comments and queries related to tax deducted at source.

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