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 here.
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.
Here is a guide for making TDS Payment 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:
- 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’.
- Enter the TAN and Assessment Year for which the payment is made.
- Enter the ‘Pin Code’ and select ‘State’ from the drop down
- Select whether the payment is made for TDS deducted and payable by you or TDS on regular assessment.
- Select the ‘Nature of Payment’ and ‘Mode of Payment’ from the drop-down.
- 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 made.
This 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.
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