TDS Payment Online (Guide)

TDS payment online can be done from the comfort of your home. All you have to do is to be ready with all the documents scanned/soft copies as the TDS window is now time-bound. You will have less than 5 minutes to finish this process.

So, let’s understand some basics about TDS.

TDS or Tax Deduction at Source falls under section 192 of the Income Tax Act. TDS means that every individual who earns has to pay a part of their income as an income tax which is chargeable under the head salary.

The TDS is calculated at the average income tax rate imposed on the basis of income and as proposed in the I.T. Act.

The TDS has to be deducted as soon as the salary is paid. If the estimated salary is less than the minimum income tax slab, no TDS will be deducted.

The TDS is deposited in the government account and a certificate of the deduction is issued to the employee.

How can I pay my TDS online?

You can pay the TDS online through the government portal, which takes just a few minutes. You can do the online payment in two ways:

Method 1: Pay TDS through Government Income Tax Portal.

Method 2: Pay TDS through NSDL Portal.

Method 3: Pay at the Bank using Cash/Card/Cheque

Let’s discuss the two methods in a step-by-step approach.

Method 1: Pay TDS through NSDL Portal

1. Click on the link. Now select the option e-payment of taxes.

2. The following page appears. Now from the given options select the relevant one. Select TDS for the payment of TDS/TCS by company/non-company deductee.

3. Challan No./ITNS 281 appears on the screen. The time limit to fill this challan is just 5 minutes and the clock starts the moment this page opens. So keep your records ready.

4. Fill out all the details as required and requested in different fields. See the image to know more. The fields are Tax applicable, type of payment, mode of payment, TAN number, assessment year, and address.

5. The payment option is only available if you have an account in any of the following banks: SBI, Bank of Baroda, Punjab and Sind Bank, and HDFC. 

6. Once done, Click proceed. You will be taken to the net banking portal of the bank. Make the payment. A counterfoil of the challan will be generated containing the CIN and other details of payment. Keep it as proof of TDS payment. 

Method 2: Pay TDS through Government Income Tax Portal

1. Log in to your account at income tax. govt. in.
2. Go to the menu, select “e-file” and click on “e-Pay Tax”.
3. On the right side of the payment page, Tap on New Payment.
4. Select the relevant assessment year.
5. Tap on Proceed in the pay TDS section.
6. Select the relevant options and click on Continue.
7. Select the Tax applicably (Major Head) other than non-deductees (0021) for non-corporates or company deductee (0020) for corporates. 
8. Go through the multiple pages and search for the sections you must fill.
9. Now, fill up the TDS Payable under relevant heads like tax, cess, surcharge, etc.
10. Select the payment type option best suited for you from net banking, debit card, RTGS, pay at the bank, and then click on Continue.
11. Check the details carefully on the preview page, before hitting the pay and submit button.
12. Pay the amount and collect the receipt generated after the successful transaction. This counterfoil has CIN, payment details, and bank name as proof of your payment.
13. Now Download the challan copy.

Method 3: Pay at the Bank using Cash/Card/Cheque

1. Download Challan 281 from the NSDL portal. Get the printout.

2. Fill out the form and go to your bank branch. Pay the amount with the preferred payment method, which can be cash, card, UPI, or cheque.

3. The challan receipt will be given to you upon receiving the payment. Use it at the time of TDS return.

What is the TDS payment date?

TDS collected is deposited in the government account within a time period. If failed to do so, the deductor is liable to pay a fine.  

The time period to deposit the TDS collected is shown below as per the deduction month:

What is the current TDS rate?

The current TDS rates for the assessment year 2023-24 can be seen here.

What is the TDS account number?

TAN stands for Tax Deduction and Collection Account Number. It is a ten-digit number containing alphabets and numbers just like your PAN card number. TAN is issued to the assessee who is liable to deduct TDS. 

TAN is used in TDS returns, payments and other communication related to income tax.

If you don’t have a TAN yet! You can apply for it in Form 49B on the NSDL i.e. National Securities Depository Limited website.

How do you check if my TDS is paid?

To verify your TDS payment take the following steps:

1. Visit the NSDL-TIN website and click on the option challan status inquiry. 
2. Enter the verification code and then continue.
3. Fill up the details of your TAN and PAN.
4. Now, select the assessment year and enter the type of returns. Then, click on Go.
5. You can easily look into the status of your TDS challan.

What happens if TDS is not paid?

In case the person missed out on paying the TDS, they are liable to pay a penalty of INR 200 per day until the payment is done under section 23 E.

How can I register my TDS account?

A TDS account can be created on the TRACES website. TRACES is short for TDS Reconciliation, Analysis, and Correction Enabling System. It’s primarily used by TDS deductees, taxpayers, and PAO. 

To register on this website take these steps:

1. Visit the TRACES website and click on the option to register as a new user. Now select among the three options Deductor, PAO, and Taxpayer, whichever is relevant.
2. A form appears on the screen relevant to the choice you entered. Fill up the form carefully. 
3. If you are a taxpayer you will be asked to enter the details of the TDS deduction, challan deposited, and the details of the 26 QB statement ready to fill.
4. In the next step click on create an account. Click on the edit tab if you wish to change any information. If not, click on submit/confirm.
5. Once the information is confirmed, an activation link will be e-mailed to your registered email-id with an activation code. The same will be sent to your registered mobile number.
6. Verify by clicking on the link and entering the activation code.
7. You will be asked to create a password for your account on TRACES.
8. Login again with the new password.

FAQ- TDS Payment Online

1. What is the minimum payment for TDS?

The minimum rate of TDS deduction is 2% which is applicable when the total value of the supply made by an individual is more than INR 2,50,000. 

For a salary less than or equal to INR 2,50,000, no TDS is deducted. 

2. Is TDS and income tax the same?

No, TDS and income tax are two different forms of taxes collected by the government. TDS is collected periodically within a year, whereas Income tax is paid on the annual income for a particular financial year. TDS is deducted before the salary is credited to the taxpayer’s account. 

3. How can I check my TDS account?

You can check your TDS account on the TRACES website. Login and check the status of your TDS, download form 16, and much more through TRACES.

4. Where can I pay the TDS challan?

You can pay TDS challan online mode by going to the government income tax portal or offline mode. You will need challan 281 which can be found at the NSDL portal.

5. Can I pay TDS with cash?

Yes, you can pay TDS in cash. Download and fill the challan 281 from NSDL and then go to the bank to do the payment in cash.

6. How pay TDS late payment and interest?

The late fee penalty for delay in the TDS deposit is INR 200/per day along with an interest of 1% on the TDS amount to be paid on a monthly basis. This has to be till the date of late fee payment. The payment of the penalty can be done through challan 281. Login to your TRACES accounts and download the justification report to see the pending amount. Take professional help if needed.

Conclusion

The TDS payment online can be done in two ways. You can do it from the NSDL website or from the Income tax portal. For TDS challan no. 281 is required. The challan window is timebound and closes after 5 minutes. You can download it and fill it out offline and also opt to pay in cash at a bank. The TDS is charged on the salary on the basis of the income tax slab rate. If you are a TDS deductor, you have to deposit the TDS collected within a time frame to avoid the penalty. For further details, write your query in the comments.

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