TDS e-Payment

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TDS Payment Online Procedure

TDS (Tax Deducted at Source) is a process of subtracting the tax amount while making payments like interest, salary, commission, rent and so on. Usually, the person who is receiving income should be determined to pay income tax. However, the government is trying to deduct the tax in advance with the help of provision of TDS payments. The salaried people are liable to pay the amount to the “Credit of the Central Government” through banks.

In the year 2004, for the income taxpayers, the electronic payment of taxes came into the picture. In order to extend the idea of TDS online payment (e-payment), it was made necessary for the categories that are mentioned below to pay their taxes electronically.

  • All corporate assesses. (companies)
  • Apart from the companies, other assesses who come under the range of section 44AB of income tax

The provision of compulsory TDS payment for those who pay income tax has been introduced on 1st April 2008.

This online tax payment is applicable for:

  • Tax deducted at source (TDS) payment
  • Tax of Self-Assessment for Income Tax
  • Tax Collected at Source
  • Tax of regular assessment for income tax

The gateway is offered by the NSDL for taxpayers for making the electronic payment of taxes by using Internet banking facility from any bank. There is another option for making payment of taxes by using the debit cards.

Process of TDS Payment:

There are two avenues available to make TDS Payment from authorized banks:

By cash:

The consumer can pay the taxes in cash at the counter of any authorized bank

By e-payment:

Through this option, the taxpayers can make TDS online using their debit card or net banking facility.

The conditions you need to fulfil to make TDS e-payment

  1. Valid TAN and PAN
  2. The internet banking account
  3. The citizen must have adequate balance in their bank account to cover the immediate
  4. Fast & secure internet connection.

Below enlisted are some important aspects that the taxpayers need to pay attention to while making their TDS payment:

  1. First, the salaried person needs to accumulate the sum of deducted TDS amount for the month. 
  2. For the next step, taxpayers have to calculate the interest amount (if there is any). 
  3. They need to visit the website: www dot tin-nsdl dot come 
  4. After visiting the website, they need to go “Service- e-payment: pay tax online” option. 
  5. After that, the taxpayers need to select the option of “Challan No./ITNS 281”. 
  6. There are few options available regarding the challan details. Here’s a look into the challan details:
  • Applicable tax amount for non-companies as well as companies.
  • Following that, the taxpayers need to enter their valid TAN.
  • Next, they need to select the Assessment year. Individuals often get confused about the assessment year they have to select while making their TDS online payment. Here’s an illustration to make this process easier for you:
  • If a taxpayer makes TDS payment for the financial year 2017-18, he or she should select the financial year of 2018-19.
  • The person should provide his complete address with the name of his city, district and Pin code.
  • Payment types: Regular payment- taxpayers pay the taxes TDS/TCS (200) and payment on the assessment on ITD- (400) TDS/TCS Regular assessment]
  • Then, the person will find the applicable section to select the nature of TDS payment.
  • Lastly, the person needs to select the payment mode on which he or she prefers to make payment. 
  1. After completing the above-mentioned process, the person should enter the Code shown on the website and then click on Proceed to submit the data. After completing the details, a screen of confirmation will be displayed before the taxpayer. If the entered data is confirmed by the taxpayer, it will automatically redirect the taxpayer to the TDS online payment site (debit card/net-banking) of the authorized bank.

In case the taxpayer wants to edit his details, later on, he can click on the ‘Edit’ button. 

  1. At the net-banking site, the user should log into his account by putting his user id and password. Afterwards, he needs to enter the basic details such as surcharge, interest, cess, basic tax, penalty and so on. 
  1. On the site of debit card payment, the taxpayer needs to enter the details of his debit card such as debit card number, the name of cardholder, validity information and the ATM Pin. 
  1. After completing all these steps, a receipt of challan will be displayed containing the details of payment, CIN, the name of the bank through which e-payment has been generated. This receipt can be used as proof for future references. Therefore, it’s important for you to save and print the receipt.

Note:

  • The taxpayers need to pay attention while making TDS online payment. They must pay attention while mentioning TAN. If any person quotes false TAN, he or she should be imposed a penalty of Rs.10,000 according to the section 272 BB.
  • For individual challans, a separate challan should be created.
  • If any person possesses lack of information about BSR code, he or she needs to verify his TDS payment receipt to check and confirm the correct BSR code.
  • Lastly, they need to pay the attention to the assessment year. The selection must be of the assessment year, not the financial year. 
You may like to Read: How to e filing income tax

FAQs on TDS Online Payment:

Q. What can I do if I haven't received TDS certificate from the deductor?

​​​In such case, you can claim TDS in your return of income. Your tax credit will be shown in your Form 26AS. It will further enable you to check Form 26AS  to claim the tax credit accordingly.

In case, there is any discrepancy in the tax credit and the tax actually deducted, you should inform the deductor about it and should work on the difference. The credit granted by the Income-tax De­­­­­­partment will be based on the details shared on Form 26AS. ​

Q. What are the basic duties of an individual who is responsible for TDS payment?

Following are the basic duties of an individual who is responsible for TDS payment: 

  • The individual should get Tax Deduction Account Number and mention this account number in all the documents related to TDS payment.
  • S/he should deduct the TDS at applicable rates.
  • S/he should pay his TDS to the Government by the specified due date.
  • S/he should file the periodic TDS statements (TDS return) by the specified due date.
  • S/he should issue the TDS certificate to the payee in respect of his TDS by the specified due date.

Q. What would happen if the taxpayer does not make his TDS payment? Would there be any adverse consequences or action taken by the Income-Tax Department in absence of doing so?

​In case an individual fails to make his TDS payment, there won’t be any serious adverse consequences. However, the payee will be discharged from his tax liability. ​

Q. How is your TAN different from your PAN?

​​​​TAN is the designated full form for Tax Deduction Account number; whereas, P​AN represents Permanent Account Number. Pan is an important entity for individual taxpayers; whereas TAN is to be quoted by the deductor in all the documents related to TDS payment. 

Q. Do NRIs have to pay different TDS if the property belongs to them?

Yes, NRIs have to pay different TDS if the property belongs to them based on the TDS rates prescribed under section 195.

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