TDS is a procedure of tax deduction that’s done directly at the source or during the time of making payments, such as rent, salary, interest, etc. The deductor or an entity that is responsible for TDS deduction has to pay the balance amount to the deductee or recipient of that payment. It is also the duty of the deductor to pay the tax within the specific time period. This paid amount goes to the central governments’ credit via taxpayers’ banks.
Different Modes of TDS Payment:
There are two modes for making TDS payment to the banks:
- By cash: This tax payment is done by paying cash at the counter via any authorized bank.
- By e-Payment: This mode of tax payment is through a debit card or via net-banking.
Online payment of TDS is applicable for:
- Tax collected at the source
- Tax deducted at the source
- Advance income tax
- Regular assessment of income tax
- Self-assessment for income tax
What are the prerequisites for TDS e-Payment?
You require the following things for TDS deposit online process:
- A valid PAN and TAN
- Internet Banking Account
- A good internet connection
- Enough account balance to cover the payment amount for an immediate transfer.
Detailed step-by-step procedure for making TDS payment:
- A taxpayer must accumulate the total TDS amount that needs to be deducted for the month.
- Calculate the interest on the total amount of their income.
- After that, visit “www.tin-nsdl.com“
- Next step is to go to “Service” e-payment: Pay Taxes Online option
- Select the applicable Challan no. Form:
- Income Tax Challan No ITNS 280
- Income Tax Challan No ITNS 281
- Income Tax Challan No ITNS 282
- Income Tax Challan No ITNS 283
- Enter all the relevant challan details:
- Valid PAN/TAN
- Tax Applicable from any Company or Non-Company
- Select the proper Assessment Year
- Fill in the address of TAN holder, along with District/City, State, and Pin Code
- Fill in the Email ID and Mobile Number
- Select the Type of Payment [TCS Regular Assessment/ Regular Payment – (200) TDS/ TCS payable by Taxpayer, etc.]
- Select the Nature of Your Payment – Select the applicable section from the drop-down
- Select the Mode of Payment, i.e. Debit Card of Selected Banks or Net-Banking
- Now, enter the given code and further click on the proceed button to submit the data. After that, a confirmation screen will pop up. If the taxpayer confirms to the data entered in the challan form, they will be directed to the payment site showing Net-Banking/ Debit Card payment options.
- The taxpayer is required to log in to the given Net-Banking site with their correct user ID and password that’s given by their respective banks for accessing net banking facility. They are required to enter all the relevant information like interest, basic tax, surcharge, penalty, cess, etc.
- On the other hand, at the Debit card payment site, an entity or the taxpayer is required to enter their debit card details like card number, cardholder’s name, validity information, and OTP.
- After the successful TDS payment, a Challan counterfoil containing CIN will be displayed on the screen, along with complete payment details and tax payer’s bank name through which they have made the e-payment. This Challan counterfoil is the proof of their TDS payment. It can be downloaded and saved in your system or simply print it out for permanent proof.
Filing the TDS returns has been mandatory according to the prevailing provisions by Income Tax Act 1961 in India. For deducting the tax at the source on certain payments, the assesses has to deduct the taxes at the source itself and also file the returns by producing TDS statements.