An informative guide on How to make Online TDS Payment

What is TDS?

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get a credit of the amount so deducted on the basis of a Form for TDS certificate issued by the deductor. This article will guide you on how to make Online TDS payments.

TDS means the Tax deducted at source on the receipt of money. TDS payment is to be made on or before the 7th working day of next month. Pay your TDS with Ebizfiling.

Steps on How to make TDS Payment online?

• Step-1: To pay taxes online, log in to the official website of the Income Tax Department and click on the e-payment section. 
• Step-2: Select the relevant challan i.e. ITNS 281 This challan number is to be used for depositing TDS/TCS by a company or non-company deductee.
• Step-3:Select the type of deductee. If the deductee is a person other than the company, then you should select (0021) Non-Company Deductee, else you need to select (0020) Company Deductee.
• Step-4: Enter PAN / TAN (as applicable) and other mandatory challan details like accounting head under which payment is made, address of the taxpayer and the bank through which payment is to be made, etc.
• Step-5: Select the type of payment. If it is a normal payment, then select (200) TDS/TCS Payable by Taxpayer or if it is a payment against the demand raised by the I.T. Department  e.g. payment of interest or late fee under section 234E then select (400) TDS/TCS Regular Assessment (Raised by I.T. Department)
• Step-6: On submission of data entered, a confirmation screen will be displayed. If PAN / TAN is valid as per the ITD PAN / TAN master, then the full name of the taxpayer as per the master will be displayed on the confirmation screen.
• Step-7: On confirmation of the data so entered, the taxpayer will be directed to the net-banking site of the bank.
• Step-6: The taxpayer has to log in to the net-banking site with the user id/password provided by the bank for net-banking purposes and enter payment details at the bank site.
• Step-7: On successful payment, a challan counterfoil will be displayed containing CIN (Challan Identification Number), payment details, and bank name through which e-payment has been made. This counterfoil is proof of payment being made.

Note: After depositing the TDS with the Income Tax Department, the deductor is required to issue a TDS Certificate to the person on behalf of whom the tax payment was made.

The TDS Certificate or Form 16 / Form 16A (as applicable) should be issued on an annual or quarterly basis.

Source: Income-tax Department website.

Know: TDS rate chart for FY 2020-21