How to Make TDS Payment Online Through Income Tax Portal

TDS Payment

TDS payment have significantly changed in the digital age with the introduction of online platforms. Online TDS payment, also referred to as TDS e-payment, has grown in popularity as a practical and effective way for taxpayers to meet their tax obligations. Now, people and businesses can quickly start their TDS payment online, through the income tax portal and reduce the burden of conventional paper-based methods.

As a result of the development of TDS online payment systems, taxpayers can now quickly check the status of their TDS challan online. Now that people can easily log in to the income tax portal and access real-time updates on their TDS challan status.

Additionally, the way TDS challan payment are made has changed dramatically as a result of online TDS payment. Taxpayers can conveniently deposit their TDS amount online which saves time and effort over the internet are made possible. This feature accepts TDS deposits online, also known as TDS challan payment online, which helps the need for a person who trips to banks or tax offices. The ability to pay TDS challan online and check the TDS challan status online has increased drastically nowadays in the world of tax payments.

What Is TDS (Tax Deducted at Source)?

In the context of income tax, TDS mandates that the payer withhold and remit to the government a predetermined portion of the payment made to the payee. It covers many different types of income, including wages, interest, dividends, rent, and professional fees, ensuring a consistent flow of tax revenue for the government and making it simpler for both individuals and businesses to comply with tax laws.

When making certain specific payments, such as TDS on rent and TDS on salary, the tax must be withheld by the payer in accordance with the Tax Deducted at Source (TDS) mechanism of the Indian taxation system. A TDS challan will be generated as a payment voucher to be used when making the payment.

Purpose of TDS Payment

The purpose of TDS payment is to ensure a smooth and efficient collection of taxes by deducting a certain percentage of income at the source itself.

All taxpayers using the e-Filing portal www.incometax.gov.in/iec/foportal/ have access to the Tax Payment through Payment Gateway option. By using the Payment Gateway provided by this service, you can pay your taxes online (in pre-login or post-login mode) using a credit card, debit card, net banking, or UPI. The chosen payment gateway will direct you to its page, which will list all of its options. In this mode, the transaction fees listed in Annexure 1 will also apply in addition to the tax amount.

Pre-Requisites for Paying TDS Online

For paying TDS online, the taxpayer must have a valid PAN or TAN for which he has to make a TDS payment. Also, the taxpayers have to register themselves with the Income Tax e-Filing Portal and link their TAN with the e-filing account. Let’s discuss the above matters in brief.

Obtain TAN (Tax Deduction and Collection Account Number)

There are two methods for TAN applications:(1) Online mode and (ii) Offline mode are as follows:

Online Mode

The NSDL-TIN website offers an online application for TAN. The websites incometaxindia.gov.in and protean-tinpan.com both list the addresses for the TIN FC.

Offline Mode

To request a TAN, fill out Form 49B in duplicate, and deliver it to any TIN Facilitation Center (TIN-FC). The NSDL-TIN website (www.protean-tinpan.com/) lists the addresses of TIN-FCs.

When applying for a Tax Deduction Account Number on behalf of a company that has not yet been registered under the Companies Act of 2013, the applicant must use Form No. SPICe (INC-32) is listed under subsection (1) of Section 7 of the aforementioned Act for the incorporation of the company.​

Register on the Income Tax e-Filing Portal

A registered deductor can access a variety of features on the TRACES website. The features consist of: viewing the status of a challan; downloading Conso Files, Justification Reports, and Forms 16 and 16A; viewing TDS/TCS credits for a PAN; and verifying the PANs of Taxpayers associated with the deductor/collector. A deductor must register their TAN at the TRACES website in order to use the features mentioned above.

The steps to register on www.contents.tdscpc.gov.in

• Step 1: Visit www.tdscpc.gov.in and Select ”Register as Tax Deductor”
• Step 2: Complete the required information, enter your login credentials, and select "Create Account."
• Step 3: After selecting "Create Account," a confirmation screen will show up to ensure that the data you entered is accurate. If changes need to be made, you can select the "Edit" option.
• Step 4: After the data has been confirmed, the account will be created and an activation link and codes will be sent to the applicant's email address and mobile number.

Link TAN with your e-Filing Account

To access various TAN-related services, you must activate your TAN user ID after successfully registering for one on the Income Tax portal. To activate your TAN user ID on the Income Tax portal, follow these steps:

• Step 1: Visit the income tax website and click the "Login Here" button.
• Step 2: Login by using your TAN user ID and password.
• Step 3: To activate your user ID, click the "Activate Your Account" link.
• Step 4: To continue, enter the OTP that was sent to the registered mobile number and click "Validate."
• Step 5: You must enter a new password for your TAN user ID on the following screen.
• Step 6: To finish the activation process, enter the new password in the appropriate field and click "Submit."

Your TAN user ID will become active once you have finished the aforementioned steps. You can access various TAN-related services, including TDS/TCS statements, challans, certificates, and more, through the income tax portal.

Step-by-Step Guide to Pay TDS Payment Online

To make a payment of TDS deducted to the government, there are two modes available, namely.

1. Pay after Generating a New Challan Form (CRN)
2. Pay without Logging in to the e-Filing Portal

Let’s discuss the steps involved in both payment methods.

Pay After Generating a New Challan Form (CRN)

• Step 1: Enter your User ID and Password to access the e-Filing portal.
• Step 2: Click e-File > e-Pay Tax on the Dashboard. Your navigation will take you to the e-Pay Tax. To start the online tax payment, select New Payment on the e-Pay Tax page.
• Step 3: Select a tax payment tile that applies to you on the New Payment page and click Proceed.
• Step 4: After choosing the appropriate Tax Payment tile, choose the Assessment Year, the Minor head, and any additional information (if necessary), then click Continue.
• Step 5: On the Add Tax Breakup Details page, enter the breakdown of the total tax payment, then click Continue.
• Step 6: Select Payment Gateway mode on the Select Payment Mode page and press Continue.
• Step 7: Verify the information and the tax break-up information on the Preview and Make Payment page, then click Pay Now.
• Step 8: After reading and making your selections in accordance with the Terms and Conditions, click Submit to Bank.

You will be taken to the Payment Gateway website, where you can log in or provide your Net Banking, Debit, Credit, or UPI information and complete the payment. Before choosing a payment method, you can compare the transaction fees offered by the five payment gateways (as per Annexure 1).

You will receive a confirmation email and SMS on the email address and mobile number registered with the e-Filing portal after the payment is successful. Upon payment success, the Challan Receipt and payment information are accessible under the Payment History Tab on the e-Pay Tax page.

Pay Without Logging in to the e-Filing Portal

• Step 1: Visit the incometax.gov.in e-Filing portal and select e-Pay Tax from Quick Links.
• Step 2: Complete the necessary information on the e-Pay Tax page, then click Continue.
• Step 3: Enter the 6-digit OTP that was received on the mobile number entered in Step 2 on the OTP Verification page, and then click Continue.
• Step 4: Following OTP verification, a success message will be shown that includes your PAN/TAN and masked name. To proceed, click Continue.
• Step 5: Select a tax payment category that applies to you on the e-Pay Tax page and click Proceed.
• Step 6: After choosing the appropriate Tax Payment tile, choose the Assessment Year, the Minor head, and the other details (if necessary), then click Continue.
• Step 7: Add the breakdown of the total amount of tax payment on the Add Tax Breakup Details page, then click Continue.
• Step 8: Select Payment Gateway mode and Click Continue on the Select Payment Mode page.
• Step 9: Verify the information and the tax break-up information on the Preview and Make Payment page, then click Pay Now.

You will receive a confirmation email and SMS on the email address and mobile number registered with the e-Filing portal after the payment is successful. The Challan Receipt can be downloaded for future use after the payment is successful. After logging in, go to the Payment History tab on the e-Pay Tax page to view the payment information and the Challan Receipt.

The Applicability of Online Payment for How to Make Tds Payment Online Through the Income Tax Portal Depends on the Following Factors:

• The type of TDS payment you are making.
• The amount of TDS you are paying.
• Your bank's online payment facility.

In general, you can make online TDS payments for all types of TDS, including TDS on salary, TDS on rent, and TDS on interest. However, there may be some exceptions, so it is always best to check with your bank or the Income Tax Department to make sure.

The amount of TDS you are paying may also affect your ability to make an online payment. For example, if you are paying a large amount of TDS, your bank may require you to make the payment in person.

Finally, your bank's online payment facility may also affect your ability to make an online TDS payment. Some banks do not allow you to make TDS payments online, so you will need to make the payment in person.

If you are unsure whether you can make an online TDS payment, you can always contact your bank or the Income Tax Department for more information.

Here are the steps on how to make TDS payment online through the Income Tax Portal:

• Go to the Income Tax Portal and log in to your account.
• Click on the "e-Pay Tax" tab.
• Select the type of TDS payment you are making.
• Enter the amount of TDS you are paying.
• Select your bank and enter your online payment details.
• Click on the "Pay Tax" button.

The TDS payment will be processed immediately, and you will receive a confirmation receipt.

Here are some of the benefits of making TDS payments online:

• It is convenient and easy to do.
• You can make the payment from anywhere in the world.
• You can track the status of your payment online.
• You can avoid the hassle of making the payment in person.

Benefits of Paying TDS Online

The process is more convenient, effective, and streamlined when TDS (Tax Deducted at Source) payments are made online. The following are the main benefits of paying TDS online:

• Online TDS payments save both individuals and businesses valuable time and effort by eliminating the need to travel to actual tax offices or banks.
• Taxpayers have the flexibility to conveniently comply with tax regulations because they can make online TDS payments at any time and from any location.
• TDS challans can be tracked in real-time on online platforms, providing prompt updates on the status of the payment and guaranteeing accuracy.
• Online TDS payments are very safe because they use encryption and other security measures to safeguard private financial data.
• Online TDS payments encourage a more eco-friendly and green approach to tax compliance by reducing the need for paperwork and manual documentation.
• For their TDS payments, taxpayers instantly receive digital receipts, giving them proof of payment in case of audits or future reference.
• Online platforms enable automated TDS amount calculations, reducing the possibility of mistakes in tax deductions.

Conclusion

In conclusion, online TDS payment offers taxpayers a number of benefits. Time is saved because there is no need to go to a bank or tax office. Anywhere can access the process, and real-time status updates guarantee accuracy. Online transactions are safe, require less paper, and generate receipts immediately. Errors are reduced by automation, and timely compliance is ensured by reminders. Overall, it is a simple and effective way to pay taxes, making the process hassle-free and up-to-date.

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