How to Pay TDS?

The payment for TDS i.e. Tax Deduction at Source shall be deposited to the credit of the Central Government by following modes:-

1. Electronic mode

Making e-payment of TDS is mandatory for all of the:-

2. Corporate Assessee; and
3. Assessee (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961
4. Physical mode

By furnishing the Challan 281 in the authorized bank branch

Now, let us proceed further and know the process of making TDS payment through electronic mode as it is the most preferred method.

TDS Payment Online Process

Here are the steps you need to follow for making online payment of TDS.

Step 1 : Open the site of the Income Tax Department to pay TDS online. Then, Login to http://www.tin-nsdl.com

Another best way is to click here to reach directly to the main site where TDS payment shall be made.

Step 2 : A portal of the Tax Information Network of the Income Tax Department will be opened. It is a portal where all e-payment of taxes are done.

Step 3 : On the homepage, you will see various challan no. for various payment of taxes. To pay TDS online, “CHALLAN NO./ITNS 281” is the challan to be paid for tds payment. So, click on the yellow button named as “Proceed” under the TDS/TCS section of heading CHALLAN NO./ITNS 281.

Step 4 : Then, you are require to enter PAN/TAN and other necessary details like accounting head under which payment is made, address of the taxpayer and the bank from which payment of TDS shall be made.

Step 5 : After submitting the data, a confirmation screen will be displayed. If the information filed by the user is valid and is as per the ITD PAN/ TAN then, full name of the taxpayer would be displayed. And after successful submission, the taxpayer will be directed to the net-banking site of the bank.

Step 6 :  For making payment through net-banking, taxpayer is required to login with his/her user id and password.

Step 7 : On successful payment a challan will be displayed CIN, payment details, and bank name through which e-payment has been made. The taxpayer must keep it safe as it is proof of the payment of TDS  

That was how the payment of TDS is made from the Income Tax Department Portal. TDS challan 281 is required to be filed for completing the process of TDS online payment. Also, it is the same portal for making:-

1. Payment of Advance tax, Self-Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company and Tax on Distributed income to unit holders.
2. Payment of Securities transaction tax, Estate duty, Wealth-tax, Gift-tax, Interest-tax, Expenditure/other tax, Hotel Receipt tax and Commodities transaction tax.
3. Payment of Banking Cash Transaction Tax (BCTT) and Fringe Benefits Tax (FBT).
4. Payment of Demand/Penalty/Interest etc under Undisclosed Foreign Income and Assets and Imposition of Tax Act, 2015 (Black Money Act).
5. Payment of Equalization Levy
6. Payment under Income Declaration Scheme, 2016
7. Payment under Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY)
8. Payment of TDS on Sale of Property
9. Payment of TDS on Rent of Property
10. Payment to Resident Contractors, Payment of Commission, Brokerage charges and Fees for Professional Services.
11. Payment of demand raised by CPC-TDS against TDS on Sale of Property
12. Payment of demand raised by CPC-TDS against TDS on Rent of Property
13. Payment of demand raised by CPC-TDS against TDS on Payment to Resident Contractors and Professionals.