TDS Online Payment: Step by Step Process

E-Payment of taxes is an initiative that has made payment of taxes much easier and hassle-free for the taxpayers. The taxpayers no longer need to visit the department, stand in queues, take a token and wait for their turn in order to pay the taxes; instead, they just need to visit the Income Tax website, select the appropriate challan and make payment after filing the requisite details.

Likewise, a person can make TDS payment through online mode where the user has a net-banking facility/debit card, and his bank provides an e-payment facility. After successfully making the payment, the user gets a TDS challan as proof of payment. 

Mandatory requirement for making online TDS payment is applicable on:

• Corporate assesses.
• The assesses who are covered under section 44AB of the IT Act, 1961 (it does not include company).

Stepwise procedure for making online TDS Payment:

• Visit TIN NSDL Portal for online services through the link “https://onlineservices.tin.egov-nsdl.com/etaxnew/PopServlet?rKey=427531851”
• Click on CHALLAN NO./ITNS 281, to be used by Company or Non-Company Deductee for payment of TDS/TCS.
• The page will display for filing relevant details in the challan. The details to be provided in the challan are:

 - Tax Deducted/Collected at Source from Company or Non-Company Deductees.
- Type of payment, TDS/TCS Regular Assessment or Payable by Taxpayer.
- Select Payment nature.
-Payment to be made through debit card or net banking.
- TAN details to be used for online verification.
- Select the Assessment Year for which tax is to be paid.
- Enter complete address along with mobile no. and Email address.
- Fill in the captcha and click on the "proceed” button.

• The page for confirmation of details provided in challan will appear. The taxpayer must check all the details and confirm.
• After confirmation, the net banking page shall appear for making TDS Payments. The taxpayer needs to log in to their net banking and proceed further for making the E-payment.
• After payment is successfully made, it will display a challan with payment details, CIN, and bank details through which e-payment has been done. This challan acts as proof of online TDS payment.
• Further, the taxpayer shall file the TDS return.
• A person can check the payment status through the TIN NSDL portal by clicking on the "Service” tab and selecting “Challan Inquiry" from the right side corner. The status gets updated on the website after 5-7 days of making the e-payment.

Benefits of making online TDS Payments:

The taxpayer will have the following benefits from Online TDS Payment: 

• The online service can be accessed from anywhere, at any time.
• There is no need to physically visit the department and submit the hard copy of the challan.
• The payment receipt is generated automatically and instantly after successfully making the payment. 
• The income tax department receives the e-challan directly after online payment is made.
• Where the taxpayer does not have an online payment facility or his bank is not authorized for making e-payment, one can also make the payment online through the different account of some other person. But one must note that the taxpayer's Permanent Account Number (PAN) is indicated clearly.