How to Make TDS Payment: Online & Offline Process

Tax Deducted at Source is part of income tax. It is deducted during specific payments such as rent and commission by a deductor.

As a taxpayer, you need to remit this deducted amount to the government. Timely payment of TDS is essential to avoid penalties. You can opt for both online and offline procedures to pay this tax.

Continue reading to know more about this TDS payment online process and other vital details.

How to Make TDS Payment Online

Follow the steps mentioned below to pay your TDS online and offline -

Step 1: Visit the official website of NSDL. Select "Click to pay tax online".

Step 2: Click on "Proceed" under "TDS/TCS Challan NO /ITNS281".

Step 3: You will be redirected to a page of "Challan No./ITNS 281". Fill in the mandatory fields such as assessment year, payment type and TAN. Enter the captcha and submit. If your TAN is valid, your full name as a taxpayer will appear on the screen.

Step 4: Once you confirm all information, you will be redirected to the net banking page. Here, log in with your existing net banking credentials to deposit TDS online.

After successful online TDS payment, a challan will be generated. This challan summarises the Corporate Identity Number, bank and payment details. Keep this carefully for future reference.

How to Make TDS Payment Offline

If you do not have internet access, you can deposit TDS offline. Take a look at a few simple steps mentioned below -

Step 1: First Download “Challan 281” from the official website of the Income Tax Department.

Step 2: Take a printout of this form. Fill in details such as TAN, your full name, residential address etc.

Step 3: Submit your payable TDS amount along with the challan to your nearest bank. After TDS challan payment, the bank will issue a stamped receipt after paying the TDS amount.

How to Check TDS Payment Status

If you are wondering "how to check TDS payment status online", follow the simple steps mentioned below -

Step 1: Visit the official website of NSDL. Select CIN or TAN-based view based on your requirement.

Step 2: In the case of CIN, enter the following information:

BSR Code of the collecting branch
Serial number of challan
Deposit date of challan
Amount

Enter the verification code and select "View". You can view the following information -

Serial number of a challan
BSR code and deposit date of the challan
Major Head Code and description
PAN/TAN
Receipt date as per TIN
Tax amount
Your name as a taxpayer

Step 3: In the case of TAN, TAN and challan deposit date. Enter the verification code and click "View Challan Details". You can view the following details -

Major and Minor head code with description
Type of payment
CIN

You can download the TDS challan file. This file is used to verify details of quarterly TDS payments.

Alternate Way to Check TDS Payment Online

Here are 3 steps to check payment status on the e-Filing website -

Visit the official e-Filing website of the Income Tax Department.
New users must register to this portal. If you are already a registered member, log on with your credentials.
Navigate to the "My Account" option. Select "View Form 26AS".
Select the year and PDF format to download the file. Enter your date of birth to open the password-protected file.

You can also use the net banking option to check your TDS payment status. However, you must link your PAN to the net banking portal to view it.

What Are TDS Payment Due Date?

You must pay TDS to the government by the 7th month of a subsequent month. For example, if TDS is deducted in June, you must pay TDS by 7th July. Note the following deadlines to pay your TDS amount -

Dues Dates Applicable for Government Assessees

Type of Transaction	TDS Payment Due dates
Payment of TDS without challan	On the day TDS is deducted
Payment of TDS with challan	7th of a subsequent month
Tax remittance by an employer	7th of a subsequent month

Dues Dates Applicable for Every taxpayer

Type of Transaction	TDS Payment Due dates
TDS deducted during March	30th April of a given financial year
TDS deducted during other months	7th of a subsequent month

What Happens Due to Late Payment of TDS?

In case of late payment of TDS, you need to pay the following penalties -

Type of Default Section 201 (1A)	Interest on Late Payment of TDS	Period of Interest Payment
No deduction of TDS(fully or partly during transaction time)	1% per month	The interest rate is charged from the deduction date to the date on which the tax is deducted.
Non-payment of tax after deduction of TDS	Monthly or part payment of 1.5% or 0.75%.	The payable interest is calculated from the deduction date to the date you paid TDS.

To simplify it, let’s consider an example:

Payable TDS amount	₹5000
Due date to deposit TDS	13th January
You paid the TDS amount	17th January
Interest payable for late payment of TDS	1.5% per monthx₹5,000 = ₹375

In case TDS Payment After 1 month from the TDS Deposit Date

Month in which TDS is deducted	1st August
Due date to deposit TDS	7th September
You paid due tax	8th September
The payable interest rate is applicable for 2 months	1st August to 8th September
Interest payable for late payment of TDS	2 months x 1.5 per month = 3%

Additional Fees for Non-Payment of TDS

Section 276B

In addition to these interest payments, if a taxpayer fails to remit the deducted amount to the government, he/she is liable to face imprisonment. The term of imprisonment is not less than 3 months. This may extend up to 7 years along with a penalty payment.

Section 234E

You need to pay ₹200/day till you fail to pay TDS. The penalty should not exceed the TDS amount which is to be filed.

How to Pay TDS Outstanding Amount?

Go through the below-mentioned steps to know how to pay interest on late payment of TDS online:

Log in to the "TRACES" portal. Download the "Justification Report" to view your outstanding TDS amount.
Use challan 281 and complete payment of outstanding TDS amount.

TDS is a mandatory payment. Hence to avoid complications opt for TDS payment online. This will help you to skip the bank queue to submit TDS challan. Keep the procedures in for a quick and smooth payment procedure.

Frequently Asked Questions

✓ Who is eligible to pay TDS online?

Any corporate and government collectors or deductors are eligible to pay TDS online.

✓ Has the government extended the due date of the TDS payment in 2021?

Yes. The government had extended the due date for filing TDS quarterly payments in 2021.