TDS Online Payment | Process for TDS E-Payment
TDS Online Payment: A Quick and Easy Guide
What is TDS?
TDS is a system of collecting tax at the source of income. When you receive payments for salary, rent, interest, commission, etc., the person or entity making the payment (the “deductor”) is responsible for deducting the TDS and paying the balance amount to you (the “deductee”).
The deductor must pay the TDS to the government within a certain period. The TDS amount is credited to the government’s account through banks.
Modes of TDS Payment:
There are two ways to make the payment of TDS to the banks:
- By cash: Payment of Tax in cash at the counter through any authorised bank
- By e-Payment: Payment of Tax through Net-Banking or Debit Card.
Advantages of TDS online deposit
- You can pay your taxes anytime through your Internet banking account.
- The TDS amount is deposited directly through your account.
- Online TDS payments to the income tax authorities will avoid mistakes caused by bankers.
- You can download and print the challan and counterfoil generated by your bank.
Pre-requisites for TDS e-Payment
- Valid TAN and PAN
- Internet Banking Account
- UPI or Debit Card
- Good internet connection
- Sufficient balance in the bank to cover the amount of payment for the immediate transfer
Note: Consider the following points before making the payment.
How to Check the Status of TDS Payment?
Here’s how you can check the status of your TDS:
Method 1: Through the TDS TRACES Website
- Login to TRACES and go to “Challan Status” under “Statements/Payments”
- Select the search based on CIN and enter the duration for which the CIN status has to be verified
- The challans paid during the given duration will be listed with their status.
- To view the challan utilisation details, select the particular challan and click on “View Consumption Details”
- Enter the Challan amount, and the consumed and unconsumed details will be displayed.
Method 2: Through the Income Tax E-Filing Portal
- Login to IT Portal with the TDS Deductor credentials
- Go to “e-Pay Tax” under “e-File” and click on Payment History.
- All the processed payments will be listed here, and they can also be filtered based on the requirement.
- To view the challan details, click the 3 dotted button under the “Action” column and select “View Details”.
- The challan receipt in PDF format can also be downloaded from here.
Method 3: Through Net Banking
- Log in to your internet banking portal.
Note: Make sure your PAN is linked to your bank account. - Go to the TDS space to check the status of your TDS payments.
Steps by step procedure for TDS payment
1: Log in to the Income Tax portal using your TAN credentials.
2: Go to ‘e-File‘ on the dashboard and select ‘e-Pay Tax.’
3: Click ‘New Payment‘ on the e-Pay Tax page.
4: Choose the relevant tax payment option and click ‘Proceed.’
5: Select the Assessment Year, fill in the required details, and click ‘Continue.’
6: Enter the breakdown of your total tax on the ‘Add Tax Breakup Details‘ page.
7: Choose your preferred payment gateway and click ‘Continue.’
8: Review your details and click ‘Pay Now.’
9: You’ll receive a confirmation via email and SMS on your registered contact information.
Note: After a successful payment, you will receive a confirmation email and SMS on the email ID and mobile number registered with the e-filing portal. The payment details and challan receipt will be available under the Payment History tab on the e-Pay Tax page.
The due date for payment:
Due dates for TDS payment by government and non-government tax deductors
- Government tax deductors: The TDS amount must be deposited on the same day as the deduction.
- Non-government tax deductors: The TDS amount must be deposited within the 7th of the following month from the deduction date.
For example, if a government tax deductor deducts TDS on 1st July, the TDS amount must be deposited on 1st July itself. If a non-government tax deductor deducts TDS on 1st July, the TDS amount must be deposited by 7th August.
What Happens If You Delay in Payment of TDS?
If someone deducts tax at source but fails to deposit it fully or partially to the income tax department, they must pay simple interest on the unpaid TDS.
The interest will be 1.5% per month or part of a month, calculated from the date of TDS deduction to the date it is paid to the income tax department.
Interest Applicability:
- In case of a delay in payment due to a late deduction, interest at the rate of 1% per month will be applied from the month the deduction was supposed to be made to the month it was actually made.
- If payment is delayed after deduction, interest at 1.5% per month will be applied from the month of deduction to the month of payment.
This concludes the post on the procedure for TDS e-payment. Please share your views and opinions with us in the comment section below.
FAQs on TDS Payment Online
1. Who is liable to pay TDS?
Ans: Individuals who are required to make specified payments under the Income Tax Act must deduct TDS when making those payments. However, if the individual’s books are not audited, TDS will not be deducted.
2. How can i get my TDS account number ?
Ans: The Income Tax Department will provide the Tax Deduction Account Number (TAN) to all individuals who are required to deduct TDS.
3. Is it mandatory to issue a TDS certificate?
Ans: Yes, it is mandatory for deductors to issue a TDS certificate to taxpayers.
4. What is a short payment in TDS?
Ans: Short payment is an error caused by PAN problems, incorrect tax rate, and deduction faults.
