TDS Online Payment Process
As per the Income Tax Act 1961, TDS or Tax Deducted at Source is the tax amount paid to the government at the point of origin of income which is deducted by the responsible deductor.
TDS should be remitted within the stipulated timeline and can be paid through online mode. Here is more detail on how to pay TDS challan online.
Note: Option to pay TDS and TCS is removed from NSDL website, now you have to pay your TDS and TCS using Income Tax Official Website.
How to Pay TDS Challan Online?
The payment of TDS or Tax Deducted at Source can be made online through the Income Tax official website:
Step 1: Visit the official website at www.incometax.gov.in
Step 2: On the main page click on 'e-pay tax'
Step 3: Enter your 'PAN / TAN' and 'Mobile Number'. Click on 'Continue'
Step 4: Now, enter the 'OTP' received on your registered mobile number and click on ' continue'
Step 5: Slelct box named 'Income Tax' and click on 'proceed'
Step 6: Then, Select the 'Assessment Year (AY)' and click on 'Proceed' under 'Pay TDS' tab.
Step 7: Add all your details related to 'Nature of Payment', 'Tax Break up', 'Payment mode'
Step 8: Once all the fields have been filled up, the user will be required to fill in the Captcha code and click on the 'Proceed' button.
Step 9: Select the bank through which you want to make the payment
Step 10: After the user confirms the data, he/she will be redirected to the net banking website of the bank.
Step 11: The user will be required to log in to his/her internet banking profile and make the payment of TDS.
Step 12: After the successful payment, a counterfoil challan will be generated and displayed on the screen.
Step 13: This challan will have the Corporate Identity Number (CIN) and details pertaining to the payment and the name of the bank through which the payment was made.
Step 14: Download the challan for future reference.
Due Date for TDS Online Payment
The deadlines for the payment of TDS are different for government assessees and other assessees. The due dates are listed below:
Month | TDS payment date |
April | 7th May |
May | 7th June |
June | 7th July |
July | 7th August |
August | 7th September |
September | 7th October |
October | 7th November |
November | 7th December |
December | 7th January |
January | 7th February |
February | 7th March |
March | 30th April |
- Due date or deadline for TDS Payment for Government assessees
- The due dates for payment of TDS for Government assessees are as follows:
For the remittance of taxes without challan | The day of deduction |
For the remittance of taxes with challan | 7th of the following month |
Taxes charged on perquisites which are remitted by the employer | 7th of the following month |
- Quarterly payment option
The taxpayers can be permitted by the Assessing Officer to make TDS payments on a quarterly basis. However, this can be done only with the approval of the Joint Commissioner. The due dates for quarterly payments are as follows:
For the quarter ending on the 30th of June | 7 July |
For the quarter ending on the 30th of September | 7 October |
For the quarter ending on the 31st of December | 7 January |
For the quarter ending on the 31st of March | 30 April |
How to Check the Status of Online TDS Payment?
You can check the status of your TDS by following the steps given below:
- Visit https://www.tdscpc.gov.in/app/tapn/tdstcscredit.xhtml
- Type in the 'verification code' and click on 'Proceed'.
- Provide the details of your PAN and TAN.
- Select the financial year followed by quarter and type of returns.
- Click on 'Go'. You will be able to check the status of your TDS.
Another way through which you can check the status of your TDS is:
- Visit Income Tax Efiling official website
- If you are a new user then register yourself. If you have already registered, login to the portal by providing your login credentials.
- Go to 'My Account', under which click on 'View Form 26AS'.
- Select the year and PDF format and download the file. The file is password protected where your date of birth will be your password. If you date of birth is 7 June 1991 then your password will be 07061991.
You can also use the net banking facility to view the status of your TDS payment. However, your PAN must be linked to your net banking portal in order to view the status of your TDS payment.
Taxpayers can easily check the status of their TDS payments online through the TIN-NSDL OLTAS portal. There are two ways to track the status: CIN-based view and TAN-based view, each providing specific details of the payment.
Method | Required Details | Viewable Details |
CIN Based View | - BSR Code of collecting branch - Challan date - Challan serial number - Amount (optional) | - Challan Serial Number - Date of Deposit - BSR Code - Major Head Code with description - TAN/PAN - Name of Taxpayer - Receipt Date by TIN - Amount Confirmation (if entered) |
TAN Based View | - TAN - Challan date range for a particular financial year | - CIN - Major Head Code with description - Minor Head Code - Nature of Payment - Amount Confirmation with CIN |
Timeframe for TDS Payment
The following are the details regarding the due date for TDS payment:
- TDS payment due date that is collected by the deductor is seventh of the next month.
- The due date for TDS payment is 30 April of the year only for the month of March, as it is end of the financial year.
- The non-Government assesses as well as Government assesses who deposit tax with Challan (Treasury Challan) are eligible for these TDS payment timeline
- The due date for TDS payment is the same day on which the tax amount is deducted for government deductors who make the TDS payment without challan.
- The due date for the TDS payment is seventh the next month after end of each quarter and 30 April for last quarter of the financial year if the Assessing officer (AO) has the prior approval from the Joint Commissioner.
Applicability of TDS Payment
Tax Deducted on Source (TDS) is applicable on salary income and is also applicable for the following other cases, such as income from:
- Dividend
- Securities and debentures
- Interest other than those on securities
- Commission on brokerage earnings and commission from insurance
- Professional services or rendering technical
- EPF withdrawal before expiry of a certain period or if amount withdrawn is beyond the limit specified
- Price money won from crossword puzzles, horse races, lottery, or any other game
- Payment made to the contractor, freelancers, or sub-contractors
- Income from transfer of immovable property
Advantages of Online TDS Payment
Listed below are the advantages of online TDS payment
- Can make payment from anywhere
- Facility is available 24 x 7
- Need not submit physical challan
- Can pay on behalf of firm, company, and others
- Get immediate acknowledgement of payment
- The e-challan will be sent directly to the Income Tax department
What Happens If You Delay in Payment of TDS?
If a person who is responsible for deducting tax at source (TDS) fails to deposit the full or any part of the TDS amount to the Income Tax Department within the prescribed time, they will be liable to pay interest on the unpaid tax. The interest is calculated at a rate of 1.5% per month (or part of a month). This interest accrues from the month in which the tax is deducted (i.e., from the date the TDS is deducted from the payment) until the date the payment is actually made to the Income Tax Department.
For example, if the TDS was deducted in January but was only paid in April, interest will be calculated for the months of February, March, and April (even if the payment is made in the middle of April, as the part of the month is considered a full month). The interest charged is simple interest, meaning it is calculated only on the amount of the TDS due and not on any accumulated interest.
This provision is in place to ensure timely payment of taxes and to discourage delays in remitting the deducted tax to the government. The penalty for non-payment can increase if the delay is prolonged, and the defaulting individual or entity may also face additional penalties and legal consequences under tax laws.
Delay in Filing TDS Return
The following are the scenarios that may happen in case there is delay in filing TDS return:
- A penalty of Rs.200 per day till time the TDS return is submitted will have to be paid by the taxpayer in case an assessee fails to submit the TDS return within the specified due dates as per Section 234E.
- In case of purchase of immovable property, the penalty is also applicable for producing Form 26QB.
- the total amount of TDS collected should always be more than the penalty amount.
Delay in TDS Deduction
The following are the details regarding in TDS deduction:
- TDS is deducted on 30th of every month and on the last day for the month of February
- Interest of 1.00% per month or part must be paid by the deductor from the date when it should have been deducted to the actual date of deduction, in case the TDS is not deducted on the due date.
Delay in TDS Payment
The following are the details regarding delay in TDS payment:
Section | Description | Details |
Interest on Delay (Section 201(1A)) | Interest on delayed TDS payment | 1.5% per month (or part of a month) on the TDS amount from the date of deduction to the date of payment. Any fraction of a month is considered a full month for interest calculation. |
Penalty for Non-deduction (Section 221) | Penalty for failure to deduct TDS | Penalty imposed if the deductor fails to deduct TDS and does not provide a reasonable cause. The penalty will be the amount of tax in arrears. |
Penalty for Non-deduction (Section 271C) | Penalty for failure to deduct TDS | Penalty equivalent to the amount of tax due will be levied on the deductor. Only the Joint Commissioner of Income Tax can impose this penalty. |
Prosecution (Section 276B) | Prosecution for failure to deduct TDS without reasonable cause | Imprisonment for 3 months to 7 years, along with a fine, can be imposed if the deductor fails to deduct TDS without a reasonable cause. |
FAQs on TDS Payment Online
- What should I do if I mistakenly entered the wrong TAN while making a TDS payment?
If you made a mistake while entering the TAN, you can correct it via TRACES (TDS Reconciliation Analysis and Correction Enabling System). The correction can be authorised by the Assessing Officer or the Bank, depending on the field that needs modification.
- How can I check my TDS payment challans online?
You can access your TDS payment challans under the 'Payment History Tab' on the e-Pay Tax page of the Income Tax portal.
- What is the due date for making TDS payments online?
TDS payments must be made by the 7th of the month following the deduction. For TDS on rent and property purchase, the due date is 30 days from the month’s end. For March deductions, the due date is 30th April.
- Can I retrieve the TDS challan receipt if I forgot to download it immediately after the payment?
Yes, you can download the TDS/TCS payment challan receipt by logging into your TAN account on the Income Tax portal at any time.
- How can I fix an error in a TDS payment after submission?
Errors in TDS payments can be corrected through TRACES. If you need to amend the payment amount or TAN/PAN, the Assessing Officer or Bank can help facilitate the correction.
- Is it possible to check the status of my TDS payment online?
Yes, you can track your TDS payment status by visiting the 'Payment History Tab' on the e-Pay Tax page of the Income Tax portal.
- Can I make a single TDS payment for multiple deductees?
Yes, you can make a combined TDS payment for multiple deductees in one transaction, ensuring that the payment breakdown is properly filled out during the online payment process.
- Do I need to provide a TAN for making TDS payments online?
Yes, providing a Tax Deduction Account Number (TAN) is mandatory for all TDS returns, including challans and certificates, as per Section 203A of the Income Tax Act, 1961. You can obtain a TAN by submitting Form 49B online.
- Who should pay TDS?
Any individual who is required to make payments as per the Income Tax Act will have to deduct TDS when he/she makes the specified payment. However, in case the individual's books need not be audited, TDS will not be deducted.
- How can I get my TDS account number?
The Tax Deduction Account Number will be provided by the Income Tax Department. All individuals who deduct TDS are required to obtain the TAN.
- Is the TDS certificate mandatory?
In the case of taxpayers, it is mandatory for the certificate to be issued.
- What is the penalty for late TDS payments?
In the case of late payments, a fine of Rs.200 will have to be paid per day until the returns are filed.
- What is a short payment in TDS?
Short payment is an error that occurs because of PAN errors, wrong quotations, and deduction mistakes.
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