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How to Make TDS Payment Online?

Updated on: Jan 11th, 2024


11 min read


Here is a guide for making TDS Payment online:

TDS or Tax Deduction at Source is a system where tax or TDS gets deducted and TDS payments happens online. The tax deduction is 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 making TDS payment 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 in TDS rate chart.

The TDS amount deducted must be deposited to the government within the due dates specified by the person deducting the TDS. The procedure to make TDS payment online is:

How to Make TDS Payment

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.

TDS payment online challan 281

Step 3: In this page the following details have to be entered

TDS payment online challan 281

TDS payment online challan 281

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.

Due Date for TDS Online Payment

Non-government tax deductors can deposit TDS online for:  
1 – Tax deducted for the months April to February – by the 7th of the following month  
2 – Tax deducted in March – by the 30th of April 

For example, if you deduct tax in July, the TDS amount can be deposited by the 7th of next month, i.e. by the 7th of August. 

In case of tax deducted on purchase of immovable property, the time limit for TDS deposit is the 30th of the following month in which the property is purchased.  
For example, if you purchase the property in June, TDS can be deposited by the 30th of July.

Applicability of Online Payment

The person can make an online TDS payment if the tax deductor has a net-banking facility with any banks authorised to collect taxes.

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
  • 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.

Advantages of Online TDS Payment

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

What happens if you delay in payment of TDS?

If any person deducting tax at source fails to deposit the whole or any part of the tax to the income tax department, then such person shall be liable to pay simple interest on the TDS.

Interest at 1.5% will be payable for every month or part of a month on the TDS amount from the TDS deduction to the date of the TDS payment to the income tax department.

Frequently Asked Questions

Is TAN mandatory for making TDS payments online? 

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.

What if I quoted the wrong TAN unintentionally while making TDS payment? 

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.

Can I view the TDS paid tax challans online? 

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 status 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.

How can I create a Nil TDS challan? 

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.

By when should I deposit the TDS payment online? 

Tax deducted at source must be deposited within the 7th of the subsequent month of deducting the tax. The only exception being TDS deducted on rent and purchase of property, where the due 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.


Quick Summary

TDS Payment online guide: Steps include, going to NSDL website, selecting Challan 281, entering details, logging into net banking, and checking TDS deposit status. Payment must be done by 7th of next month. Consequences of delayed payment include 1.5% interest per month. Some FAQs answered include TAN requirement, correction for wrong TAN, viewing TDS paid challans, creating Nil TDS challan, and deposit deadlines.

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