How to Make Online Payment of TDS: A Step-by-Step Guide

TDS or Tax Deducted at Source is a particular sum deducted by a person (deductor) when the payment such as salary, rent, professional fees, etc., exceed the TDS threshold limit. The individual (deductee) who receives this sum is liable for paying the tax.

The deductor deducts the tax at the source and pays the remaining sum to the deductee. In this guide, you will get the steps in detail to pay the TDS online through an in-depth tutorial.

Steps to Make TDS Payment Online?

To pay TDS online, you need to visit the Income Tax e-filing portal (incometax.gov.in) and use the ‘e-Pay Tax’ option, selecting ‘CHALLAN NO./ITNS 281’ under the TDS/TCS section. Next, fill up your tax details and submit the form. After that, you will be directed to the bank page where you can make the payment.

Here is the step-by-step guide to paying TDS online:

Step 1: Visit the Income Tax e-filing portal at incometax.gov.in and click on ‘e-Pay Tax’ (available in both pre-login and post-login mode) or open Income Tax software to make e-payment of taxes.

Step 2: Next, select ‘CHALLAN NO./ITNS 281’ under the TDS/TCS section to proceed. Once done, the website will be redirected to the e-payment portal as shown below.

Step 3: Once the portal is open, you need to add the following data as shown in the image and proceed to the next step.

Step 4: In the next step, fill other information such as:

• Under ‘Tax Applicable‘ choose Company Deductees’ in case the TDS is deducted by you while processing payment to an organization. In other cases, choose ‘Non-Company Deductees’.
• Add the TAN and Assessment Year in which the payment is done
• From the drop-down list fill up your ‘Pin Code’ and ‘State’.
• Choose whether the payment is made for TDS deducted and payable by you or TDS on a regular assessment.
• Next, choose the ‘Nature of Payment’ and ‘Mode of Payment’ via the dropdown list. After that, select the Submit option.

Step 5: After submission, a confirmation screen will appear. If the TAN is valid, the taxpayer’s full name as per the company’s master will be shown on the screen.

Step 6: After the confirmation of the entered data, the website will take you to the net banking site.

Step 7: Next, login to the bank site with your credentials and make the payment. After the successful payment, a challan will be generated with CIN number, payment details and bank name with which e-payment is made.

Benefits of Making of TDS Payment Online

When you make TDS payment online, you don’t need to submit the challan physically and it is remitted immediately via your account. Moreover, your e-challan will be submitted directly to the Income Tax department. Let’s find out more benefits of making TDS payments online:

• Flexibility to pay from anywhere
• Get payment acknowledgement receipt immediately
• Overwriting mistakes are eliminated
• The e-challan is sent to the Income Tax department
• Can be paid on behalf of a firm or a company
• No need to maintain any physical record as everything is saved in an online portal
• TDS online payments are faster and secure

How Can You Make the TDS Payment Offline?

To make TDS payment offline, deductors are required to submit TDS via challans submission at their bank branches physically. They can download the Challan 281 through the online portal and fill out the necessary data.

Once done, they need to deposit the TDS amount and the challan to their nearby bank branch. After submitting the challan, a counterfoil will be provided. This counterfoil could be used as proof after the bank stamps it in the future reference.

The Due Date for Depositing TDS With the Government

Once the TDS amount is deducted, the deductor needs to submit this amount to the government in a specific time frame, this amount is called TDS payment. The due date for making TDS payments for government assesses and other assesses are given below:

Month of Deduction	Due Date for Making TDS Payment
April	7th May
May	7th June
June	7th July
July	7th August
August	7th September
September	7th October
October	7th November
November	7th December
December	7th January
January	7th February
February	7th March
March	30th April for non-government deductors and 7th April for government deductors.

• Quarterly Payment Option: The taxpayers can also be permitted to make

TDS payments quarterly once granted permission by the Assessing Officer. However, it could only be done with the approval from the Joint Commissioner. The due dates to make payments quarterly are as follows:

For the quarter ending on the 30th of June	7 July
For the quarter ending on the 30th of September	7 October
For the quarter ending on the 31st of December	7 January
For the quarter ending on the 31st of March	30 April

How to Check Payment Status of TDS Online?

There are multiple ways to check TDS details and tax credits online, including through Form 26AS, the Income Tax e-Filing portal, and net banking. Deductors can also verify challan details using the relevant tax payment portals.

Steps to Check TDS Challan Payment Status (via TIN-NSDL OLTAS)

• Open the TIN-NSDL OLTAS portal at tin.tin.nsdl.com/oltas
• Select ‘Challan Status Inquiry’
• Choose either CIN-based view (enter BSR code, challan date, and challan serial number) or TAN-based view (enter TAN and date range)
• Enter the required details and click ‘View’
• The challan status, deposit date, and confirmation details will be displayed

Steps to Check TDS Payment Status via Form 26AS

• Open incometax.gov.in and log in with your credentials
• Go to ‘e-File’ and access Form 26AS (Tax Credit Statement) through the available option on the portal
• Choose ‘Year’ and ‘PDF format’
• Download the file. If this file is password protected, then it could be accessed via Date of Birth according to the PAN card number

Is There any Penalty for Late Payment and Return Filing?

Yes, there will be a penalty for late TDS payment and return filing. In the case of a late deduction, 1% will be imposed per month on the amount. Similarly, in terms of late payment, 1.5%per month will be levied on the amount. Here are the detailed guidelines you need to follow:

1. In Case of Late Deduction: If TDS is not deducted on the date on which it was required to be deducted, then interest will be imposed:

• @1% per month or part of a month
• On the TDS amount from the date on which TDS was deductible
• To the date on which TDS is actually deducted

2. In Case of Late Payment: If TDS is not deposited, then the interest will be imposed as the following:

• @1.5% per month or its part
• On the TDS amount from the date on which it was expected to be deposited
• To the date TDS was deposited

Which Software Can You Use to Make Online TDS Payment

There are different types of e-TDS software available that you can use to prepare and file your TDS returns and generate TDS certificates. With it, you can quickly prepare and file Form 24Q, 26Q, 27Q, 27EQ, 27A/B, 16A, 16, 27D, 12BA, etc. Moreover, you can also download your Challan, TDS, Income Tax documents, and so on.

In addition to that, eTDS software can help you with validating PAN and challan details, calculating late payments rate, making corrections to TDS returns, and so on.

Top eTDS Software that you can consider for this purpose:

• ClearTDS
• Zen E-TDS Software
• Webtel’s Web-e-TDS
• CompuTDS
• Saral TDS Software
• WinTDS

What is the Time Duration for TDS Payment?

• TDS payment due date which is collected via deductor is 7th of the upcoming month
• The due date for TDS payment is 30th April of the next FY only for the month of March (previous FY).
• The non-Government assesses along with Government assesses who deposit tax with Challan (Treasury Challan) are eligible for the TDS payment timeline.
• The due date of TDS payment is the same day on which the tax amount is deducted for government deductors who make the TDS payment without the challan.
• The TDS payment due date is the 7th of the upcoming month after the end of every quarter. The TDS payment due date is 30th April for the last quarter of the financial year if the Assessing officer (AO) has received the prior approval from the Joint Commissioner.

Applicability of TDS

Tax Deducted on Source is applicable on a person’s salary income and for the following cases like income generated from:

• Dividend
• Interest on securities
• Interest other than those on securities
• Commission on brokerage earnings and insurance
• Professional services or rendering technical
• EPF withdrawal before expiry of a specific period or if amount withdrawn is beyond the limit that have been specified
• Price money won from crossword puzzles, horse races, lottery, or any other game
• Payment made to the contractor, freelancers, or sub-contractors
• Income from transfer of immovable property

Conclusion

After going through the article, you might have understood how you can pay your TDS online. Make sure you follow the process aptly to ensure the successful payment of your TDS.

To streamline your procedure, you can also use e-TDS filing software where you can file and pay TDS directly. Make sure to check software features and requirements before choosing any of them.

FAQs Related to TDS Payment