What is TDS payment?

TDS payments are taxes deducted at source on payments over certain thresholds per the Income Tax Act of 1961. Tax deducted at source is a method by which income taxes gets paid in India.

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Online TDS means deducting taxes from the assessee’s salary and paying this amount to the government on their behalf. The deductor is required to remit this amount within certain time frames.

What is TDS Challan?

The TDS Challan is the main instrument for depositing TDS with the government. It is a single document that taxpayers can use to deposit their tax payments.

TDS online payment updates during the Union Budget 2022

During the payment of the transfer of virtual digital assets, TDS at 1% will get deducted from the source.
It amended into provisions of section 194-IA regarding the amount on which TDS will be deducted: The person purchasing the property would have to deduct the tax at 1% of the sum paid/credited or the value of the stamp duty on the property, whichever is higher.
According to the new Section 194R, TDS should be deducted at 10% by anyone who provides any residents with benefits or perks, whether convertible into money for carrying on their businesses or professions.

Among the types of payments for which TDS get deducted are:

Consultation fees
Professional fees
Salaries
Commission payments
Rent Payments
Interest payments by banks

*Tips on TDS online payment –

Rent payments or professional fees like those paid to lawyers and doctors do not require individuals to deduct TDS payments.

TDS is a type of advance tax deposited with the government periodically. The deductor is responsible for depositing the tax on time.

The deductee deducts TDS, and these can claim through a tax refund after filing their ITR.

How to make TDS Online Payment / Challan Payment:

You can pay TDS online with NSDLs official website. Please refer to the steps below to make an e-payment.

Step 1 – Visit https://www.protean-tinpan.com/index.html > Click on services > then click e-payment – pay taxes online.

Step 2: Please select the ‘Challan No./ITNS 281′ option from the list of applicable challans found on the landing page of e-payment: Pay taxes online.

Step 3: After clicking the Proceed text, the user gets directed to a separate landing page.

Step 4: The user will land on a new landing page, shown above, where they will be required to enter information regarding the tax application, the Tax Deduction Account Number (TAN), the Assessment Year (AY), the Pin code, and the State, as well as the payment mode and payment type. Upon completing all fields, the user must enter the Captcha code and click ‘proceed.’

Step 5: Following submission of the form, the taxpayer’s TAN gets verified, and the taxpayer’s full name will be displayed.

Step 6: Upon confirmation, the user will move to the bank’s net banking site.

Step 7: The user must login to the Internet banking profile to make TDS payments online.

Step 8: Payment is successfully processed, and a counterfoil challan gets generated. It will contain information related to the online payment, the bank’s name through which the amount got debited, and the Corporate Identity Number (CIN).

TDS Payment Status: How to Check and Download?

Follow these steps to check your TDS status:

Visit – https://www.tdscpc.gov.in/app/tapn/tdstcscredit.xhtml
Click ‘Proceed’ after entering the verification code.
You will need to provide your PAN and TAN
You can select the financial year, the quarter, and the type of return you would like to receive.
By clicking ‘Go,’ you can view your TDS status.

How to calculate interest on TDS late payment?

As per Section 201 (1A), if the TDS gets deducted late, you will have to pay interest at the rate of 1.5% per month, with interest calculated from the date of deduction until the actual deposit date.

How do you calculate TDS on Salary payments?

Employers deduct TDS from employees’ salaries according to their ‘average rate of income tax. The average income tax rate gets calculated: Income tax payable (calculated by slab rates) divided by the employee’s projected income.

Paying TDS online has many advantages

Payments can be made from anywhere
This facility is open 24 hours a day, seven days a week
Physical Challan is not required
Pays on behalf of companies, firms, and others
Receipt of payment is immediate
The income tax department receives the e-challan directly

FAQ’s

1. How to pay Interest on late payment of TDS online?

This steps below will help you pay interest on late TDS (Tax deducted at Source) payments online:
Check out the official site of the Income Tax Department of India at https://www.incometaxindia.gov.in/
In the top menu, click on the “e-Filing” tab, then select “Login Here”.
Please click on ‘Register Yourself’ if you wish to become a member. Existing members can login with their user ID and password.
Then click the “pay tax” link located under the “My Account” tab once you have logged into the e-Filling portal.
- When the “Pay Tax” page opens, select “TDS/TCS Interest payment” form the “mode of Payment” drop-down menu.
Ensure you enter the correct PAN (Permanent Account Number), TAN (Tax Deduction Account Number), assessment year, and interest amount.
When you have entered all the required information, click the “Proceed” button to proceed to the payment page.
Next, the payment page asks you to select a bank and follow instructions for making the payment, after which the payment is submitted.

2. Process for TDS payment online via NSDL?

To make a TDS (Tax Deducted at Source) payment online through the National Securities Depository Limited (NSDL) is now protean portal, you will need to follow these steps:
Visit the NSDL Protean e-Gov website at https://www.protean-tinpan.com/index.html
From the top menu, select “e-Payment,” then “TDS/TCS Payment.”
Users who already own a user ID and password are able to log in. If you are a new user, click on “New User? Register Here” to register.
After logging into the NSDL – Protean e-Gov portal, click on the “TDS/TCS Payment” tab in the top menu and then select “Make TDS/TCS Payment” from the drop-down menu.
The TDS/TCS Payment form will open, where you will be required to enter your PAN (Permanent Account Number), TAN (Tax Deduction and Collection Account Number), the assessment year, and the amount of TDS.
When you have entered all the required information, click the “Proceed” button to proceed to the payment page.
During the payment process, you must select the bank through which you wish to make payment, followed by the instructions provided.
Please note that this is just a general outline of the steps involved in making a TDS payment online through the NSDL-Protean portal. The exact steps may vary depending on the details of your specific case, and you may need to follow additional instructions or provide additional information as required by the NSDL – Protean. It is always best to consult the official website and seek assistance from the NSDL-Protean if you have any doubts or questions.