The digitisation of the entire process of income tax filing has made the lives of the income tax officials and the taxpayers easy. One’s tax liabilities can be discharged online in the following manner – advance tax, self-assessment tax, TDS, TCS, and tax on regular assessment. The TDS is deducted at source by the taxpayer at the prescribed TDS rates and the same is deposited with the government.
Collection of TDS is mainly done as it is a steady source of revenue, there is simplification of tax return filing, it will result in timely collection of tax, and provide convenience to taxpayers. E-payment of TDS is mandatory for all corporate assesses and assesses other than the company to whom the provisions of section 44 AB of the Income Tax Act, 1961 are applicable.
Step by Step Breakdown of How to Make TDS Payments Online on the Government’s Website
Step 1: Login to the TIN NSDL Portal i.e. tin-nsdl.com.
Step 2: In all the options given, select the Relevant Challan namely, ITNS 281 (this challan is specifically used for depositing TDS/TCS by company or non-company deductee).
Step 3: Fill in the Challan Details in the following manner -
- For the Deductee:
- If the deductee is a company then select ‘(0020) Company Deductee’.
- If a deductee is a person other than the company then select ‘(0021) Non-Company Deductees’.
- Type of Payment:
- If TDS/TCS is payable by the taxpayer by himself select ‘(200) TDS/TCS Payable by Taxpayer’.
- If TDS is payable via regular assessment as an outcome of a demand raised by the income tax department choose ‘(400) TDS/TCS Regular Assessment’.
- Mode of payment: one can select either Net banking or Debit Card of the taxpayer.
- Enter TAN details.
- Enter the relevant assessment year which would be the year succeeding the financial year in consideration.
- Details like address, email id, mobile number, etc. should be filled in carefully. After which the captcha code should be entered and one must press on the proceed button.
Step 4: Confirm Challan Details that were previously submitted after careful perusal.
Step 5: Make TDS Payment when the portal will redirect you to the net banking page of your bank. One must enter the user id and password details on the net banking page and make the payment of TDS. After the payment is paid, the dashboard will display a challan counterfoil which is the Challan Identification Number (CIN). It will also have the payment details, the Bank Branch Code (a 7-digit code allotted to the bank by the RBI), bank name, and date of tender of challan etc.
Please note: The collecting bank branch will transmit the details to the Tax Information Network (TIN) via Online Tax Accounting System (OLTAS) – an initiative by the income tax department to receive information and receive records of tax paid through banks.
Step 6: Online Verification of the challan be done on the NSDL – TIN website after 7 days of making the payment. There are two ways in which you can track your challan i.e. CIN based view and TAN based view. The information that can be availed will be different for either of the methods.
Conclusion
Online TDS payment facility is governed by a simple philosophy - “Anytime, Anywhere.” This approach has gone a long way in making the process of TDS administration easy and transparent. This increased digitisation is definitely a step in the right direction to create a stabler, more accurate TDS system.