TDS or Tax Deduction at Source is a system where tax gets deducted at the source where payment originates.
The tax deduction is at the time of making payments such as rent, interest, commission etc. The person making the payments is responsible for deducting the TDS and paying the remaining amount to the person who is supposed to receive the payment. The TDS amount deducted must be deposited to the government within the due dates specified.
The complete list of such specified TDS payments along with the rate of TDS to be deducted can be accessed in the TDS rate chart.
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Here are the steps to follow when making a TDS payment online
Step 1
Go to NSDL’s website for e-payment of taxes
Step 2
Select ‘CHALLAN NO./ITNS 281’ under TDS/TCS section. You will be directed to the e-payment page.
Step 3
In the following page enter the required details
- Under ‘Tax Applicable’ select ‘Company Deductees’ if the TDS deducted by you is while making payment to a company. In any other case select ‘Non-Company Deductees’.
- Enter the Tax Deduction Account Number or TAN and Assessment Year (AY) for which the payment is made.
- Enter the ‘Pin Code’ and select ‘State’ from the drop down.
- Select whether the payment is made for TDS deducted and payable by you or TDS on regular assessment.
- Select the ‘Nature of Payment’ and ‘Mode of Payment’ from the drop-down and then click on ‘Submit’.
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Step 4
On submission, a confirmation screen will be displayed. If TAN is valid, the full name of the taxpayer as per the master will be displayed on the confirmation screen.
Step 5
Once you get confirmation of the data entered, you will be directed to the net banking website of your bank.
Step 6
The taxpayer should log in to the net banking site with the user id and password provided by the bank and make the payment.
Step 7
On successful payment, you will get a challan counterfoil containing CIN, payment details and name of the bank through which payment has been made. This counterfoil is a proof of the payment. After payment of TDS, you have to file your TDS return.
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Is TAN mandatory for making online TDS payments?
According to Section 203A of the Income Tax Act, 1961 it is compulsory to quote TAN on all TDS returns including all TDS payment challans and certificates. TAN can be obtained online by filling Form 49B.
Can TDS paid tax challans be seen online?
Yes. The Income Tax department offers an online facility to view and enquire about challan status. By visiting the official portal of TIN-NSDL, taxpayers can monitor their challan deposits and therefore, can verify the details concerning their taxation related payment. TDS challan status can be tracked online through TAN view and CIN view. In the TAN view mode, the TAN number serves as the identification number for challan tracking. In the CIN mode, the challan number serves as the identification number. The deductor can view all the relevant details.
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If unintentionally while making a TDS payment, the wrong TAN is mentioned, what happens?
The Income Tax department allows for corrections to be made to the challan. If unintentionally, while making TDS payment, wrong TAN is mentioned, the deductee will not be able to claim the credit. Hence corrections in the challan generated can be affected through TRACES (TDS Reconciliation Analysis and Correction Enabling Systems). Depending on the field that requires correction, either the assessing officer or Bank can authorize it. The Assessing Officer authorizes TAN/PAN corrections.