TDS, or Tax Deducted at Source, is a type of tax that the government collects from certain types of payments. The tax is deducted at the time of payment by the payer and deposited with the government. TDS payments can be made online through the TDS NSDL website or the TDS challan system. Here is a step-by-step guide to help you make a TDS payment online.
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TDS Payment
TDS stands for Tax Deducted at Source, and it is a system introduced by the Income Tax Department wherein the tax is collected at the source of income. Taxes are deducted on various payments like salary, commission, professional fees, interest, rent, etc. The person making the payment (deductor) deducts TDS from the payment and deposits it with the government.
The deductor is required to obtain a TAN (Tax Deduction and Collection Account Number) from the Income Tax Department. Once the TAN is obtained, the deductor has to quote this number in all TDS mandatorily returns filed and TDS payments made.
The amount of TDS to be deducted depends on the payment type and the applicable TDS rate. For example, TDS on salary is deducted at 10% while TDS on rent is deducted at 5%.
Once the tax is deducted, the deductor has to deposit this amount with the government using an online portal called NSDL (National Securities Depository Limited). The NSDL website provides a facility for making a TDS payment online. This payment can be done by logging into your account on the website and following the on-screen instructions.
It is important to note that your PAN (Permanent Account Number) must be linked to your bank account to make an online payment. If you do not have a PAN or if your PAN is not linked to your bank account, you will not.
TAN Registration
To make a TDS payment online, you will need to first register for a TAN (Tax Deduction and Collection Account Number). This is a 10-digit alphanumeric number that is allotted by the Income Tax Department. You will need to quote this number while making any TDS payment.
You can apply for a TAN through the NSDL website (https://tin.tin.nsdl.com/tan/index.html) or the UTIITSLC website (https://www.utiitsl.com/UTIITSL_TAN_NSDL/).
Once you have applied for and received your TAN, you can proceed to make your online TDS payment through the NSDL or UTIITSLC websites.
When TDS Deduction and TDS Payment is Required?
As per the Income Tax Act, any person responsible for making payment of salary, commission, professional fees, interest, rent, and more to any resident is required to deduct TDS (Tax Deducted at Source) at the time of making such payment. The deductor is also required to deposit the deducted amount with the government.
However, there are certain payments on which TDS is not required to be deducted. These include payments made to foreign nationals and payments which are specifically exempt under the Income Tax Act.
The deductor is required to deposit the deducted TDS amount with the government within a prescribed time limit. The due date for the deposit of TDS depends on the mode of payment. For example, if TDS is deducted from salary, it must be deposited on or before the 7th of next month. Similarly, if TDS is deducted from interest, it must be deposited on or before 30th April of next year.
Candidates must also note that TDS is applicable for the amount deposited in CERSAI.
Procedure for Making Online TDS Payment
The process of making an online TDS payment is straightforward. Just follow the steps below:
1. Log in to your internet banking account.
2. Go to the ‘Payments/Transfers’ section and select ‘TDS Payment’.
3. Enter the amount you wish to pay, along with the required details such as your PAN number, TAN number, etc.
4. Click on ‘Submit’ and confirm the payment.
That’s it! Your TDS payment online is now complete.
Conclusion
Making a TDS payment online is a simple process. Visit the TDS NSDL website (https://www.tdscpc.gov.in/). Login to your account using your PAN number, TAN number, and password. Select the ‘Payment’ option from the menu. Choose the ‘ Challan 280’ option. Enter the required details such as your PAN number, TAN number, amount of tax to be paid, and so on. Make the payment through any of the available online payment options. You will receive a confirmation message once the payment is successful.
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