How To Make TDS Payment Online?

TDS means tax deducted at source—which is an integral part of income tax. Under the TDS system, the specific amount gets deducted as tax directly from the income at the source. It is deducted on various types of payment such as salaries, interest payments by banks, commission and rent payments, consultation fees, and professional fees. This tax amount further helps the government to collect direct income taxes very efficiently. 

Here’s a guide to know about the meaning of TDS, where it is applicable and online payment process of TDS along with other vital details.

What is Tax Deducted At Source (TDS)

TDS is a part of the direct tax mechanism which is considered as one of the modes of collecting tax under the Income Tax Act, 1961. It was introduced with the sole aim to collect the taxes from the very source of income or during the time of income payout. 

TDS refers to the amount of tax, which is deducted by the deductor, and then the same amount gets remitted into the account of the Central Government. The deductee from whom this amount has been deducted at source is eligible to receive the credit of the same amount on the basis of Form 26AS for TDS certificate issued by the deductor.

Here, a deductor is referred to any individual who has to make payments as per the Income Tax Act and thus have to pay TDS when specified payments are made. This tax amount is deducted at source at the predetermined TDS rates and the tax so deducted needs to be deposited with the government within a specified time period. For instance, the monthly due dates for TDS payment are as follows:  

What is Tax Deduction and Collection Account Number (TAN)?

Tax Deduction and Collection Account Number (TAN) is a ten-digit alphanumeric number issued by the income tax authorities to every assessee who is liable to deduct TDS. This number is mentioned in TDS returns, payments and any other related communication with the income tax department.

And, if anyone does not mention TAN, then there’s a penalty for the same. However, a person can apply for TAN in Form 49B on the Protean eGov Technologies website.

Where is TDS Applicable?

• Salary income
• Interest income
• Dividends
• Property sale
• Insurance commission
• Consultant fee
• Commission or brokerage fee
• Profession fees
• Transfer of any immovable property

How to Make TDS Payment Online?

Timely payment of TDS is very crucial to avoid penalties. The user can opt for both online and offline procedures to pay this tax. The procedure to make TDS payment online is:

Step 1: Go to the official website of Protean eGov Technologies. Go to“e-payment”under “Service”and click on “pay taxes online”.

Step 2: Next, you will see the list of several challans, you have to click on the ‘CHALLAN NO./ITNS 281’ option and select ‘proceed’.

Step 3: Then, you will be directed to a different landing page, where you need to fill up the required details such as time of payment, nature of payment, mode of payment.

Step 4: After submitting these above-mentioned details, you will be redirected to a new page. Fill in the details pertaining to the tax applicability, TAN, assessment year, pin code and state, the payment mode, and the type of payment are to be filled up.

Step 5: Post this, you will be required to fill in the captcha code and then click on the ‘Proceed’ to move further in the process.

Step 6: Your form is submitted now, and the TAN will be verified. Upon the verification of TAN, the taxpayer’s full name will be reflected on the screen.

Step 7: You will be redirected to the net banking website of the bank for the online payment of TDS. You need to log in to your internet banking profile and make the online payment of TDS.

Step 8: Post the successful payment, a counterfoil challan will be generated, which contains the Challan Identification Number (CIN) and the needful payment details such as bank branch code and date of tender of challan.

Online TDS Payments are Mandatory for:

• Offices of the Government.
• Companies
• Persons required to get their accounts audited under Section 44AB of the Income Tax Act, 1961
• Deductors reporting more than 20 deductee records for any quarter in the financial year

Online Verification of TDS

Once you have made the TDS payment online, you can now easily track online the status of the challan deposited in the bank by following these steps:

Step 1: Go to the Protean eGov Technologies and click on the “Challan Status Inquiry”.

Step 2: Type the verification code and proceed further.

Step 3: Submit the important details of your TAN number along with PAN.

Step 4: Select the assessment financial year and type of returns and click on “go”.

Step 5: Now, you will be able to check the status of your online TDS payment. 

Benefits of Making TDS Payment Online

• Ease of making the payment.
• No need to submit the physical challan.
• TDS is remitted instantly via your account.
• Can be paid easily on the behalf of firm, company, and others
• Receive the acknowledgement of payment immediately.
• Your e-challan will directly go to the Income Tax department.