The recipient of this payment (the deductee) is liable to pay this tax. The deductor deducts the tax at the source and pays the remaining amount to the deductee. The deducted TDS amount is then remitted to the government. The deductee can verify the deducted TDS in Form 26AS or the TDS Certificate issued by the deductor.

Methods of Tax Collection:

Deduction or collection of tax at source (TDS / TCS)

Direct payment by an assessee, i.e., Advance tax/self-assessment tax

For example, if Mr. A wins a lottery amounting to Rs 1,00,000, TDS needs to be deducted at 30%. In this case, Mr. A would receive Rs 70,000 (Rs 1,00,000 – 30%). This tax deduction before rendering the income to the receiver is known as Tax Deduction at Source.

The deducted TDS must be deposited by the deductor to the government within a specified timeframe. TDS payments can be made both online and offline.

How to Make the TDS Payment Online

• Search for TDS payment online:

Open Google and search for "TDS payment online." Click on the relevant link.

• Visit the NSDL website:

Go to the NSDL website for e-payment of taxes.

• Pay taxes online:

Scroll down to find "PAY TAXES ONLINE" and select "Click to Pay Tax Online."

• Fill in the required details:

Under "Tax Applicable," choose either company deductees or non-company deductees.

Select the category of TDS you want to pay under "Type of Payment" (e.g., TDS payable by the taxpayer or under regular assessment).

Choose the nature of the payment (e.g., interest, dividend).

Select the payment mode (net banking/debit card).

Enter the Tax Deduction Account Number (TAN) and select the assessment year.

Provide the address, including the district, state, and pin code.

Enter the CAPTCHA and click "Proceed."

• Confirm details and make payment:

A confirmation screen will display the full name of the deductor as per the master if the TAN is valid.

After confirming the data entered, you will be directed to the net banking site to complete the payment.

Once the payment is successful, a challan will be displayed containing the payment details, CIN, and bank name.

How to Make the TDS Payment Offline

For offline payments, deductors must deposit TDS by submitting the challans physically at bank branches. They can download Challan 281 online, fill in the required details, and deposit the TDS amount along with the challan at the nearest bank branch. A counterfoil will be provided after submission, which can be used as proof after being stamped by the bank.

Advantages of Online TDS Payment

• Convenience of making payments from anywhere

• No time constraints

• Avoid physical visits and standing in queues

• Ability to pay on behalf of a firm, company, or others

• Immediate acknowledgment of payment

• E-challan sent to the Income Tax department

• Saves time and money

• No need to maintain physical records

• Avoids mistakes like overwriting

• Faster and more secure

Due Date for Depositing the TDS Amount with the Government

After deducting the TDS amount, the deductor must deposit this amount with the government within a specified timeframe. The due dates for remitting TDS are as follows:

• For April deductions, the due date is May 7th.

• For May deductions, the due date is June 7th.

• For June deductions, the due date is July 7th.

• For July deductions, the due date is August 7th.

• For August deductions, the due date is September 7th.

• For September deductions, the due date is October 7th.

• For October deductions, the due date is November 7th.

• For November deductions, the due date is December 7th.

• For December deductions, the due date is January 7th.

• For January deductions, the due date is February 7th.

• For February deductions, the due date is March 7th.

• For March deductions, the due date is April 30th for non-government deductors and April 7th for government deductors.

Tracking the Status of Online TDS Payment

To check the TDS payment status online, you can use PAN, Form 26AS, or the net banking portal.

• Steps to Check TDS Status by PAN Card

• Visit the NSDL TDS Status Page or the NSDL website for e-payment of taxes.

• After typing the verification code, proceed.

• Enter the PAN and TAN details.

• Select the financial year as well as the quarter and the type of return.

• Click on 'Go'; the TDS status can be checked here.

• Steps to Check TDS Payment Status by Form 26AS

• Visit the Income Tax e-filing website.

• Register yourself if you do not have credentials.

• If you are already a registered user, log in using the credentials.

• Click on 'View Form 26AS' in the 'My Account' tab.

• Select 'Year' and 'PDF format.'

• Download the file.

If the file is password protected, it can be accessed using the Date of Birth as per the PAN card.

Penalty for Delayed Payment and Late Return Filing

Section 201(1A): Late deduction or late payment of TDS

Late Deduction: If TDS is deducted but not deposited to the government, interest will be levied at 1% per month or part thereof, from the date on which TDS was supposed to be deducted to the date of furnishing the return.

Late Payment: If TDS has not been deposited, interest will be levied at 1.5% per month or part thereof, from the date on which TDS was supposed to be deposited to the date on which TDS was actually deposited.

Section 234E: Late fee for default in the furnishing of TDS/TCS returns within the due date

The penalty under this section is Rs. 200 per day until the failure continues. However, the amount of penalty cannot exceed the amount of TDS for which the return is required to be filed. For example, if ABC is required to file his TDS return for Q2 (July - September), which is due on October 31, and ABC files his return on November 15, the penalty will be calculated as follows:

• Total number of days of delay: 15 days

• Penalty: 15 * 200 = Rs. 3,000

• Amount of TDS: Rs. 2,500

• Penalty u/s 234E: The lower of the penalty or TDS amount, i.e., Rs. 2,500

Section 271H:

The Assessing Officer can levy a penalty ranging from Rs. 10,000 to Rs. 1,00,000 if:

No TDS return has been filed within one year from the due date.

The TDS deducted, late filing fees, and interest amount have not been deposited to the government.

By following these steps and guidelines, you can ensure timely and accurate TDS payments, avoiding penalties and legal issues.