All You Need to know about making a TDS payment online

All You Need to know about making a TDS payment online

TDS or Tax Deducted at Source is a way of paying Tax as per Income Tax Act, 1961. The deductor withholds an amount, which us equivalent to the tax amount from the total earnings payable to the receiver.

Applicability of TDS

Many of us know that the TDS is applicable only on salary, but it does have applicability on other cases like :

1. Income gained from the internet on debentures and securities
2. Income from dividends
3. Income from interest other than those on securities
4. Payment to contractors/freelancers/subcontractors
5. Insurance commission
6. Transfer of certain movable property
7. Winning of the lottery, crossword puzzles or horse race
8. Income from professional services
9. Income from royalty.

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Reason for the introduction of TDS:

The government has introduced the concept TDS to :

Prevent tax evasion

It acts as a regular source of revenue

Ensures timely collection of Tax

Since the payment is spread throughout the year, the taxpayer can plan it accordingly.

The timely collection of Tax ensures that it is collected and field at the right time, making it easy for the taxpayer to pay the Tax.

Process of TDS payment online-

The government of India has specified certain steps and measures which one needs to stick to when it comes to tax payment. Read ahead to know more on how you can make e-TDS payment.

1. To begin the process of TDS online payment, you need to log on to the NSDL. Here you will get all the information pertaining to TDS challan payment online.
2. Once logged in, you need to select ‘CHALLAN NO./ITNS 281’ under TDS/TCS section. After this, you will be directed to the TDS e payment.
3. On this page, you would be required to enter the following details:
4. TAX APPLICABLE section- Select Company Dedudctees; if you are not deducting the TDS, then you would need to select ‘Non-Company Deductees.”
5. Now you need to enter the TAN and Assessment year
6. Enter the Pincode and State
7. Choose if the payment is being made for TDS deducted and payable by you or TDS on regular assessment
8. Now select the mode of payment for TDS e-filing
9. Once you have selected the mode of payment, submit the form.
10. After submission, you will see a confirmation screen emerge. If the information like TAN, full name is validated, you will see this screen.
11. After confirming the information, you will be directed to the net banking site of your Bank for making the TDS e payment online
12. Make the payment by filling the details
13. After successful TDS return filing online, you will see a challan having CIN payment details and bank name, which wich the TDS deposit online has been done.

Online payment of TDS on property

As we have mentioned above, one has to do TDS online filing once the property is sold. The procedure for this remains the same. Here is a quick snap at the steps of payment :

1. Go to the TIN NSDL website www.tin-nsdl.com
2. Under the TDS on Sale of property, you need to click on the Online form for furnishing TDS on property
3. Choose the applicable challan like “TDS on Sale of Property”.
4. Fill the form along with Form 26QB
5. Submit the form. Once you have successfully filled the details and submitted it. A confirmation screen would appear, which has two option Print form 26QB and Submit it to the Bank. You will also be intimated with acknowledgment number. Make sure that you keep this number saved with you. Print the form and then select Submit to the Bank. After this, you would be required to make an online payment.

TDS Certificate

Once you have submitted the TDS with the Income Tax Department, the deductor will issue the TDS certificate to the taxpayer. TDS certificate or Form 16 is issued annually or quarterly.

Benefits of making e-payment of TDS :

1. You can make payment at any time of the day
2. You will get an instant acknowledgment of the payment
3. You just download the challan or acknowledgment details and save it
4. Less paperwork and more transparent payment

Timeline for TDS payment

1. The payment is collected on the 7th of next month.
2. Only for March(being the end of the financial year), one can pay the deducted TDS on or before 30th of April

Conclusion- TDS deduction is mandatory and is the responsibility of every individual to make this payment. The information mentioned above will brief on the steps of the TDS payment.