TDS or Tax Deduction at Source is a system whereby the income tax is deducted at the time of making some payments like rent, interest, commission etc. The person making such specified payments is responsible for deducting the TDS and paying the balance amount to the person entitled to receive such payment.
The complete list of such specified payments along with the rate of TDS to be deducted can be accessed
The TDS amount deducted must be deposited to the government within the due dates specified by the person deducting the TDS. The TDS payment can be made online.
Step 1: Go to NSDL’s website for e-payment of taxes
Step 2: Select ‘CHALLAN NO./ITNS 281’ under TDS/TCS section. You will be directed to the e-payment page.
Step 3: In this page the following details have to be entered:
1. Under ‘Tax Applicable’ select ‘Company Deductees’ if the TDS deducted by you is while making payment to a company. In any other case select ‘Non-Compay Deductees’.
2. Enter the TAN and Assessment Year for which the payment is made.
3. Enter the ‘Pin Code’ and select ‘State’ from the drop down.
4. Select whether the payment is made for TDS deducted and payable by you or TDS on regular assessment.
5. Select the ‘Nature of Payment’ and ‘Mode of Payment’ from the drop-down.
6. Click on ‘Submit’ button.
Step 4: On submission, a confirmation screen will be displayed. If TAN is valid, the full name of the taxpayer as per the master will be displayed on the confirmation screen.
Step 5: On confirmation of the data entered, you will be directed to the net banking site of your bank.
Step 6:The taxpayer should log in to the net banking site with the user id and password provided by the bank and make the payment.
Step 7: On successful payment, a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been madeThis counterfoil is a proof of the payment made. After payment of TDS, you have to file your TDS return. TaxCloud – ClearTDS is a cloud-based TDS filing software. This means that you do not have to download anything on your machine. You can access TDS data from anywhere, anytime.You can create your FVU file in minutes!Start using TaxCloud TDS right now.
Q. Is TAN mandatory for making payments online?
A. As per section 203A of the Income Tax Act, 1961 it is compulsory to quote Tax Deduction Account Number (TAN) on all TDS returns including all TDS payment challans and certificates. The TAN is allotted by the Income Tax Department and can be obtained online by filling Form 49B.
Q. What if I quoted the wrong TAN unintentionally while making payment?
A. Clerical errors while making payments are possible, and hence the taxation department allows for corrections to be made to the challan. The consequences of the wrong challan are that the deductee will not be able to claim the credit. Hence corrections in the challan generated can be affected through TRACES (TDS Reconciliation Analysis and Correction Enabling Systems). Depending on the field that requires correction, either the assessing officer or Bank can authorize it. The Assessing Officer authorizes TAN/PAN corrections.
Q. Can I view the tax challans online?
A. The tax department offers an online facility to view and enquire about challan status. By
visiting the official portal of TIN-NSDL, taxpayers can monitor their challan deposits and
therefore, can verify the details concerning their taxation related payment. TDS challan
can be tracked on the online mode via two views – TAN view and CIN view.
In the TAN view mode of challan tracking, the TAN number serves as the identification number for challan tracking. For any tracking of transactions related to TDS deduction and remittance against the same, TAN is mandatory to be mentioned by the deductors.
In the TAN view mode of challan tracking, the information which can be fetched includes the CIN (Challan Identification Number), Minor and Major Head Codes and the mode/nature of the payment. The deductor has to mention the TAN, and CTD (Challan Tender Date) and these details can be viewed. In the CIN mode, the challan number serves as the identification number. And the deductor can view all the relevant details.
Q. How can I create a Nil TDS challan?
A. To create a NIL TDS challan, the deductor must fill up all amount columns as ‘Zero’ and leave the field containing Cheque/DD number as blank.
Q. By when should I deposit the tax deducted?
A. Tax deducted at source must be deposited within the 7th of the subsequent month of
the tax. The only exception being TDS deducted on rent and purchase of property, where the
date is 30 days from the end of the month in which TDS is deducted. Also for TDS deducted in
March the due date is 30th of April.