How to Make TDS Payment Online: Step-by-Step ITNS 281 Challan Guide (FY 2026-27)

Tax Deducted at Source (TDS) must be deposited with the Income Tax Department within prescribed due dates using Challan ITNS 281 through the TIN-NSDL or Income Tax e-filing portal. Timely online TDS payment ensures compliance under the Income Tax Act, 1961, and avoids interest liability under Section 201 and penalties for non-deposit or late remittance of deducted tax.

Pre-requisites Before Making TDS Payment Online

Before making an online TDS payment, ensure that you have:

• A valid TAN (or PAN where applicable, such as Form 26QB or 26QC).
• The applicable Assessment Year and TDS section code.
• The exact TDS amount, including interest or penalty, if applicable.
• Net banking, debit card, or other supported payment method.
• Deductee and payment details for accurate reporting.

How to Make TDS Payment Online?

Once TDS has been deducted, the deductor must deposit it with the Central Government within the prescribed due date. TDS payments can be made online through the Income Tax e-Filing portal using the deductor's TAN credentials.

Step 1: Log in to the Income Tax e-Filing Portal

Visit the Income Tax e-Filing portal and log in using your TAN, password, and CAPTCHA.

Step 2: Navigate to e-Pay Tax

From the dashboard, go to e-File > e-Pay Tax.

Step 3: Start a New Payment

On the e-Pay Tax page, click New Payment to initiate a TDS payment.

Step 4: Select the Applicable Tax Payment Tile

Choose the relevant tax payment option applicable to your TDS liability and click Proceed.

Step 5: Select the Assessment Year

Choose the appropriate Assessment Year, enter the required details, and click Continue.

Step 6: Enter the Tax Break-up

Provide the breakup of the TDS amount under the relevant payment heads and proceed.

Step 7: Choose the Payment Gateway

Select your preferred payment gateway and click Continue.

Step 8: Verify and Make Payment

Review all the details carefully and click Pay Now to complete the transaction.

Step 9: Receive Payment Confirmation

After successful payment, a confirmation message will be displayed. You will also receive an acknowledgement via your registered email address and mobile number.

Step 10: Select the Correct Section Code

Choose the appropriate Section Code based on the nature of the TDS payment. For example:

• Section 92B – Salary payments
• Section 94C – Payments to contractors
• Select the applicable section for other payment types as prescribed.

Selecting the correct section ensures proper credit of TDS.

Step 11: Select the Applicable Income Tax Act

For payments made from 1 April 2026, the portal provides an option to choose between the Income Tax Act, 1961 and the Income Tax Act, 2025. Select the applicable Act based on the relevant financial year and payment requirements.

Step 12: Download the Challan

Once the payment is successful, download and save the challan receipt containing the CIN/BSR Code, Challan Serial Number, and payment details. This receipt will be required while filing your TDS return and for future reference.

How to Pay TDS via UPI, Google Pay and Net Banking?

The Income Tax e-Filing portal allows deductors to pay TDS using multiple online payment methods, making the process faster and more convenient.

• UPI: Pay instantly using any UPI app by scanning the QR code or approving the payment request.
• Google Pay: Select Google Pay through the UPI payment option and complete the transaction.
• Net Banking: Choose your bank from the list of authorized banks, log in to your internet banking account, and authorize the payment.
• Debit Card: Use a supported debit card issued by participating banks to make the payment.
• Payment Confirmation: After successful payment, download the challan receipt containing the CIN/BSR code for future reference and TDS return filing.

Due Date for TDS Online Payment

Who Must Pay TDS and Online Payment Applicability?

Any person responsible for deducting tax at source (TDS) must deposit the deducted amount with the Central Government within the prescribed due date. The mode of payment and registration requirements depend on the nature of the deductor and the applicable TDS provision.

PAN vs TAN for TDS Payment

• TAN-based payment (ITNS 281): Applicable to employers, companies, firms, and other deductors who are required to obtain a Tax Deduction and Collection Account Number (TAN).
• PAN-based payment: Applicable to specified transactions such as purchase of immovable property (Form 26QB) and rent payments under Section 194-IB (Form 26QC), where obtaining a TAN is not mandatory.

Note: Even individuals and HUFs not liable for tax audit may be required to deduct and deposit TDS for specified transactions, such as high-value rent or property purchases, if the relevant provisions of the Income Tax Act apply.

How to Check the Status of Online TDS Payments?

The taxpayer can check the TDS deposit status online. To check the TDS deposit online, go to TIN-NSDL Oltas challan status Inquiry. There are two ways to search the challan status of TDS payment.

1. CIN Based View

On entering the challan details, such as the BSR code of collecting branch, challan date, challan serial number, and amount (optional), the taxpayer can view the following details:

• Challan serial number
• Date of deposit
• BSR code
• Major Head Code with description
• TAN/PAN
• Name of taxpayer
• Receipt date by TIN
• Amount confirmation, if it is entered (correct or not)

2. TAN Based View

By providing TAN and challan date range for a particular financial year, the taxpayer can view these details:

• CIN
• Major Head Code with description
• Minor Head Code
• Nature of Payment

If the taxpayer enters the amount against a CIN, the system will confirm whether it matches the details of the amount reported by the bank.

How to Correct a TDS Challan After Payment?

If you have made an error while depositing TDS, you can request a TDS challan correction through your bank or the TRACES portal, depending on the type of correction required.

• Corrections Allowed: TAN, Assessment Year, Major Head, Minor Head, Nature of Payment (Section Code), PAN, and Challan Amount (subject to prescribed conditions).
• Online Correction: Eligible deductors can request corrections through the TRACES portal using a digital signature or EVC.
• Bank Correction: Certain challan fields can be corrected by submitting a correction request to the collecting bank within the permitted time.
• Track Status: After submitting the request, you can monitor the correction status on the TRACES portal.

Note: Not all challan fields can be modified, and correction requests must be made within the timelines prescribed by the Income Tax Department.

What is Challan ITNS 281?

Challan ITNS 281 is the prescribed challan used to deposit Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) with the Central Government. It is used by employers, companies, firms, and other TAN holders to deposit TDS deducted from payments such as salary, contractor payments, professional fees, rent, commission, and interest.

From 1 April 2026, the Income Tax Department introduced Challan ITNS 281N under the Income Tax Act, 2025. All TDS payments relating to Tax Year 2026-27 onwards should be made using ITNS 281N, while payments relating to earlier years continue to use ITNS 281.

1. When Should You Use ITNS 281 or ITNS 281N?

Use the challan for depositing TDS deducted on:

• Salary payments
• Contractor payments
• Professional or technical fees
• Rent payments
• Commission and brokerage
• Interest payments
• Any other TDS payment requiring a TAN

2. Details Required While Filling ITNS 281

3. ITNS 281 vs ITNS 281N

Advantages of Online TDS Payment

• You can pay taxes anytime and from your net-banking account.  
• The TDS amount gets transferred instantly through your account.  
• Online TDS payments to the income tax department will avoid the errors made by the bankers 
• You can save/print the challan and the counterfoil generated from your bank.

What Happens if you Delay in Payment of TDS?

Failure to deposit TDS or file the TDS return within the prescribed time can result in interest, late fees, and penalties under the Income Tax Act. The longer the delay, the higher the additional cost and compliance consequences.

1. Interest and Penalty for Delayed TDS Payment

2. Penalty Worked Example - Section 234E 

Complying with the due date for deduction and remittances helps in avoiding late interest, penalties and disallowances.