The tax liability rests with the deductee, who must pay the tax, while the deductor withholds the tax at the source and remits the balance to the deductee. The deducted TDS is then paid to the government. The deductee can cross-verify this deduction using Form 26AS or the TDS Certificate from the deductor.

Methods of Tax Collection:

• TDS/TCS: Tax Deduction or Collection at Source
• Direct payment by assessee, such as advance tax/self-assessment tax

If Mr. A wins a lottery of Rs 1,00,000, a 30% TDS is required. Thus, Mr. A receives Rs 70,000 (Rs 1,00,000 - 30%). This is termed as Tax Deduction at Source. The deductor must deposit the TDS to the government within a set period, either online or offline.

How to Make the TDS Payment Online

• Search "TDS payment online": Use a search engine to find the relevant link.
• Visit the NSDL website for e-tax payment.
• Pay taxes online: Click on "PAY TAXES ONLINE".
• Enter required details: Select applicable tax category, TDS type, payment mode, enter TAN, assessment year, and address, then proceed.
• Confirm and pay: Verify details and complete payment on the net banking page. A challan with payment details will be issued.

How to Make the TDS Payment Offline

Download Challan 281, fill in the details, and submit it physically at designated bank branches. A stamped counterfoil is provided as proof.

Advantages of Online TDS Payment

• Convenience of anytime, anywhere payment.
• No need to visit physically or join queues.
• Pay for self or others (firm/company).
• Immediate acknowledgment with e-challan.
• Saves time and resources, reduces errors.

Due Dates for Depositing TDS with the Government

• April: May 7th
• May: June 7th
• June: July 7th
• July: August 7th
• August: September 7th
• September: October 7th
• October: November 7th
• November: December 7th
• December: January 7th
• January: February 7th
• February: March 7th
• March: April 30th (non-govt) / April 7th (govt)

Tracking the Status of Online TDS Payment

Verify TDS payment online using PAN, Form 26AS, or net banking:

• Using PAN: Visit NSDL's status page, enter PAN and TAN, financial year, and type of return to check the status.
• Using Form 26AS: Access the Income Tax e-filing website, register or log in, view Form 26AS to download the PDF for your reference (password: DOB as per PAN).

Penalty for Delayed Payment and Late Return Filing

Section 201(1A) addresses late deduction/payment of TDS. Interest is 1% per month if TDS is delayed from the intended deduction date or 1.5% if delayed in deposit.

Section 234E imposes a Rs. 200 daily penalty for late TDS return filing, capped at the unpaid TDS amount. Example: For a 15-day delay from October 31 to November 15, a Rs. 2,500 penalty (15 days x 200), if the due TDS is also Rs. 2,500.

Section 271H

An Assessing Officer may impose a Rs. 10,000 to Rs. 1,00,000 penalty if the TDS return isn't filed within a year of the due date, and the deducted TDS, late fees, and interest are unpaid.

Adhering to these protocols helps ensure timely, accurate TDS payments, avoiding penalties and legal complications.