TDS stands for Tax Deducted at Source, a specific amount a payer deducts from the receiver’s payment, including salary, rent, interest, professional fees, commission, etc. If you know what is GST, you understand that GST is deducted from supplier payments for taxable goods.
The person receiving the payment must pay this tax, and it is the deductor’s responsibility to deduct this tax before paying it. Then, they remit the deducted TDS amount to the government and issue a TDS certificate to the deductor. The following sections will provide an in-depth understanding of the concept and how to make a TDS online payment.
Benefits of TDS Online Payment
Paying TDS online offers multiple advantages, including the following:
- Facility to pay the TDS anytime from anywhere
- No need for physical visits
- Ability to pay on behalf of a company, firm, etc.
- Get immediate payment acknowledgement
- Send e-challan directly to the Income Tax department
- Saves money and time
- Eliminates the need to maintain physical records
- Minimal chance of mistakes like overwriting
- Faster and secure payment procedure
Stepwise Procedure to Make TDS Online Payment
- Visit the NSDL website to pay the taxes online.
- Scroll down and click “Pay Taxes Online”.
- On the next page, select the category of TDS payable or under regular assessment.
- Select the Nature of payment like dividend, interest of payment, etc.
- Choose your preferred mode of payment from debit card, net banking, etc.
- Enter the TAN and select the assessment year.
- Mention the address details, enter Captcha and click “Proceed”.
- A confirmation screen will appear, displaying the deductor’s full name and other information.
- The page will redirect you to the net banking site where you can make the TDS online payment.
After successful TDS payment, a Challan will appear containing details of the payment, bank name, and CIN.
How to Check TDS Payment Status?
You can check the TDS payment status either by PAN card or Form 26as. Here is the stepwise procedure:
- By Pan Card
- Visit NSDL’s website for online tax payments.
- Type the verification code and proceed.
- Enter the PAN and TAN details.
- Select the financial year, quarter, and type of return.
- Hit ‘Go’ and check your TDS status.
- By Form 26as
- Visit the e-filing portal.
- Log in using your credentials.
- Click ‘View Form 26AS’ in the ‘My Account’ tab.
- Select ‘Year’.
- Select ‘PDF format.’
- Download the file.
Due Date for TDS Online Payment
After deducting TDS from the receiver’s payment, the deductor must deposit it with the government within a specific time frame. The due dates for TDS online payment for government and other assessees are as follows:
| Deduction Month | Due 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 | 7th April for government deductors and 30th April for non-government deductors |
Penalties for Delayed Payment & Late ITR Filing
Penalties apply under different sections of the Income Tax Act. They are as follows:
Under Section 201(1A):
- Late Deduction: If the payer deducts the TDS but does not deposit it to the government on time, it will attract an interest of 1% per month till return filing.
- Late Payment: In case the payer does not deposit the TDS, it will attract an interest of 1.5% per month then till the TDS deposit.
Under Section 234E:
If the payer does not furnish a TDS/TCS return within the due date, it will attract a penalty of Rs. 200 per day.
Section 271H:
Under this section, a penalty of Rs. 10,000 to Rs. 1,00,000 may apply under the following conditions:
- If the payer does not file a TDS return before the due date of a financial year
- If the payer does not deposit the TDS deducted, interest amount, or late filing fees to the government
At the income source, the Indian taxpayers must pay TDS as per the Income Tax Act of 1961. The deductor withholds a percentage of the receiver’s total earnings equal to the payable tax amount. If their income is found non-taxable at the end of the financial year, they can claim a TDS refund from the government after return filing. If it is taxable, their tax is deducted from the TDS deposited.
