Procedure to Pay TDS Online

Income Tax in India is charged by a variety of different methods. These different methods have been put in place to especially counter tax evasion. Most of us know about the direct Income Tax that we pay at the end of every financial year. Apart from that type of tax, there is something called TDS, short for Tax Deducted at Source.According to the Income Tax Act, whenever a person or company has to make a payment to another person or company, and if the amount crosses the specified limits, then it is liable for TDS.The party making the payment must deduct the applicable TDS at the time of payment and deposit it with the TDS account of the central government before the due date. Thus, the person receiving the payment will get it with tax already deducted. Since the tax is already deducted, evading the tax payment is impossible.The deducted TDS is included in the total annual liable income tax for the individual and can be claimed during ITR filing.

TDS payment today has become quite accessible and one can easily pay TDS using the NSDL portal for TDS payment. The steps to pay TDS are as follows:- Log on to the TIN website for TDS payment by clicking here .- Next, you will see many options to pay via challans. Choose ‘Challan ITNS 281 - Payment of TDS/TCS by company or non-company deductee’.- You will be immediately redirected to a new page where you can fill out the challan.

- Under Tax Applicable, select 0020 for Company Deductee and 0021 for Non-Company Deductee.- Next, under Type of Payment, choose either ‘(200) TDS/TCS Payable by Taxpayer’, or ‘(400) TDS/TCS Regular Assessment’, whichever is applicable.- Choose the relevant item in the ‘Nature of Payment’ dropdown menu. Nature of payment relates to the reason for payment for which TDS was deducted, like professional fees, dividends, winnings from horse races, or anything where TDS was applicable.- Next choose the mode of payment, which can be via net banking or Debit Card.- The next entry is for the Tax Deduction Account Number or TAN. Enter your TAN details accurately. Without the TAN, no deductee will be able to deposit TDS.- Enter the assessment year, which is not to be confused with the financial year. The assessment year is always the year following the year for which tax is being paid. It is the year when the tax is ‘assessed’ for the previous year. For example, if you’re paying tax for the year 2019-2020 some time in 2020, then the assessment year will be 2020-2021.- Enter personal details like address, mobile number etc, enter the CAPTCHA and click on Proceed.

Once you click ‘Proceed’, you will be given a chance to review all your entries on the next page. If everything is in order, you can proceed to pay the TDS. The website will redirect you to your bank’s netbanking page, where you can pay the TDS amount.

Once your payment is confirmed, you will be presented with a Challan Counterfoil that will be your proof of TDS payment. It will contain all details like amount paid, name of bank, mode of payment and a Challan Identification Number.

Voila! You just successfully made your TDS E Payment . By following the detailed steps given above, you can pay your TDS online every year. If by any chance you cannot pay online, then you can also produce a challan via the same website and furnish it at an authorized bank along with your TDS payment.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.