Detailed procedure for TDS e-payment [Download free checklist]

TDS e-Payment: A Quick and Easy Guide

In this post, we will discuss TDS e-payment. We will provide an overview of TDS payment and a brief history of TDS online payment. Lets look at each section in detail: 

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 of time. 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:

  1. By cash: Payment of Tax in cash at the counter through any authorised bank
  2. By e-Payment: Payment of Tax through Net-Banking or Debit Card.

Pre-requisites for TDS e-Payment

  1. Valid TAN and PAN
  2. Internet Banking Account
  3. Good internet connection
  4. Sufficient balance in the bank to cover the amount of payment for the immediate transfer

Note: Consider the following points before making the payment.

Steps by step procedure for TDS payment

  1. Log in to the e-Filing portal with your user ID and password.
  2. On the dashboard, click e-File > e-Pay Tax. You will be navigated to the e-Pay Tax page. On the e-Pay Tax page, click the New Payment option to initiate the online tax payment.
  3. On the New Payment page, click Proceed on a tax payment tile that is applicable to you.
  4. After selecting the applicable tax payment tile, select the assessment year, minor head, and other details (if applicable). Click Continue.
  5. On the Add Tax Breakup Details page, add the breakup of the total amount of tax payment. Click Continue.
  6. In the Select Payment Mode page, select the Payment Gateway mode. Click Continue.
  7. In the Preview and Make Payment page, verify the details and tax breakup details. Click Pay Now.
  8. Read and select the terms and conditions. Click Submit to Bank. (You will be redirected to the website of the payment gateway where you can log in or enter your net banking/debit/credit card/UPI details and make the payment.) You may compare the transaction charges (as per Annexure 1) of the five payment gateways before selecting the payment option.

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.

Interest Applicability:

  • In case of a delay in payment due to late deduction, interest at the rate of 1% per month will be applied for the period 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.

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.