In today, post we are going to show you how you can pay TDS online without leaving your house or office step-by-step.
In fact, you can make TDS online payment yourself in few hours.
Let’s get started:
What is TDS – Tax Deducted at Source?
The full form of TDS is Tax Deducted at Source and a taxpayer must pay it if his income exceeds the specified limit. Any individual whose income exceeds a certain threshold is required to make TDS payment online or offline. The tax rates for TDS is prescribed by the tax department in India.
An individual or company that pays the TDS is called a deductor. And the individual or company that receives the payment is called the deductee.
The deductor is responsible for the deduction of TDS before making any payment and deposit of the same with the India government. TDS is deducted on the following payments:
- Interest paid by the banks
- Rent payments
- Commissions payments
- Professional fees
- Consultation Fees
What is TDS Return?
A TDS Return is a summary of all the transactions related to TDS made during a quarter. TDS Return is a quarterly statement submitted by the deductor to the Income Tax Department.
After deducting TDS, the deductor has to deposit the same amount and its details to the government in a TDS return form.
Notably, different types of TDS forms are required to file different types of TDS deductions.
Also Read: How to Calculate Capital Gain Tax in India?
What is TDS Payment Due Date for Government Assesses?
Assesses connected with the Government will be required to make their TDS deposit before the following dates:
- Payment of TDS Tax without challan: on the day of deduction
- Payment of TDS Tax with challan: 7th of the succeeding month
What is TDS Payment Due Date for other Assesses?
The following are the TDS payment due dates for assesses who are not connected/ or are a part of the Government:
- The tax-deductible in the month of March till 30th April of the succeeding year.
- On 7th of the succeeding month for the deposit of tax by the employer.
Can TDS Online Payment be made Quarterly?
Yes, you can do TDS online payment quarterly. However, as a taxpayer, you will have to take permission from the Assessing Officer (with consent from the Joint Commissioner). The following are the TDS payment due dates for the same:
- 7th July for the quarter that concludes on June 30th.
- 7th October for the quarter that concludes on September 30th.
- 7th January for the quarter that concludes on December 31st.
- 7th April for the quarter that concludes on March 30th.
Which are the Authorized banks for TDS Payment?
The following are the authorized banks that can receive online TDS payment:
How to make TDS Payment Online?
To pay TDS online, follow the below-mentioned steps:
- Step 1: Visit TIN NSDL TDS payment website online.
- Step 2: Choose the TDS challan payment number (ITNS 281) for the online payment of TDS.
- Step 3: Enter your valid TAN number.
- Step 4: Enter TDS payment details, such as the name and address of TAN, etc.
- Step 5: A confirmation will be displayed on the screen after you submit data.
- Step 6: On the confirmation page, you will have to confirm the details of the challan. After confirming it, the page will be redirected to the net banking page.
- Step 7: At this stage, you will have to make a payment. And after payment, a challan counterfoil would be displayed, it is proof of the payment.
What are the Consequences of Delayed TDS Online Payment?
In case the taxpayers do not make TDS payment before or on the due date, he will be levied interest at the rate of 1.5% for every month. Notably, the interest will be calculated on the basis of the date of deduction.
How to pay Interest on Late Payment of TDS Online?
As said above, if the taxpayer pays after the due date, he is liable to pay interest @1.5% every month. Notably, the interest is charged from the date TDS was deducted, and not from the due date of TDS payment.
For example, Tax Deducted at Source was deducted on 25th August, and the due date for it was 7th September. Let’s say the assessee fails to deposit it on the due date. In such a case, the interest would be charged from August 25 and not from September 7.
What is Challan?
Challans are a form used to pay tax payments. There are different challans for different tax payments. For example:
- Challan 280 for income tax payment (self-assessment tax, advance tax, etc.)
- Challan 281 for TDS or TCS payment
- Form 26QB for tax payment for TDC deducted (sale of the property, etc.)
Can Challans be Submitted Online?
As said above, challans are the documents required to make tax payments. An individual can get the same from:
- Income tax department
And yes, the payment can be made online as well as offline. To make the payment online, you need to have net banking or debit card. The same can be done by submitting the hard copies of challan and the amount payable at the bank counters.
What is required while making Challan Payment?
The following are the things which are required to fill challan:
- Selection of correct tax payment head
- Selection of mode of payment cautiously
- Attention while entering the amount
- Cross-check of nature of payment
- Selection of assessment year correctly
- Correctly entering PAN & TAN details of the deductor
How to Find TDS Payment Challan?
The following are the steps to view challan on TRACES:
- Login to account
- Go to Payments Menu or Statements
- Click on Challan Status
- Enter Challan details
The result will appear on the screen. All the unused balance (if any) will be shown against the challan details.
Also Read: UAN Number Guide
How to Calculate TDS late Payment Interest?
To understand this, let’s take the help of an example.
The tax was deducted on 20th March and was deposited on May 5th. However, the due date was April 30. Here, the period from March 20 to 31 will be calculated as one month, April 1 to 30 as the second month, and May 1 to 5 as the third month.
So, the interest would be applicable for three months, i.e., 4.5%—the logic behind this is that each month is calculated as per calendar month and not a number of days.
TDS Payment FAQs
How much interest is charged on late payment of TDS?
The interest is applicable at 1.5% per month.
Which challan is used for TDS payment?
Challan 281 is used for TDS payment.
How to download the TDS payment challan?
Visit the official website of NSDL, and search either through CIN (Challan Identification Number) or TAN. Fill all the required details, and you can view status or download the same.
Is TDS applicable for advance payments?
Yes, it is applicable to advance payments made for the supply of goods and services under the contract. However, the value must exceed Rs 2,50,000, excluding GST.