Tax Deducted at Source (TDS) is a process in which there is a tax deduction at the origin of the income. Tax deducted by the payer at the source is paid to the government on behalf of the payee.
When a company makes a payment for rent, commission, salary, professional fees or interest, they deduct the applicable taxes before paying to the receiver. This deducted amount, known as Tax Deducted at Source (TDS), is paid to the government. TDS Challan is the form used to deposit the tax to the government.
Challan 281 is used to deposit the TDS. You can make your TDS payments online and offline.
Online Payment of TDS
To make an online payment of TDS, visit the official website of NSDL and click on the option of “Pay Taxes Online.” You can proceed with the preferred category, TDS or TCS. You will be redirected to the preferred page. Fill in all the mandatory details, and enter CAPTCHA. Your name will appear on the screen if your TAN is valid.
Once the information is verified, the net banking page will open. Now you can log in with your net banking details to deposit the TDS online.
After you deposit the TDS online, your TDS Challan will be generated. It will have all your payment details. You can print or save the Challan and the receipt copy.
Offline Payment of TDS
For offline TDS payment, download the Challan required for TDS payment from the site of the Income Tax Department. You can take out a printout, fill in the required details and go to your nearest bank branch to deposit this Challan with the TDS amount.
Tips for Smooth and Error-Free Transactions
Follow these tips to ensure a smooth TDS payment process.
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For error-free transactions, you can manage your tax payment through a net banking portal, as it is easy and provides an accurate status of your TDS payment. You get instant receipts if you make an online payment of TDS. You can check your payment status through the bank portal.
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Banks enable their existing and non-existing customers to make online payments of TDS round the clock, including public holidays, through net banking.
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Multiple payment alternatives like net banking, credit card, debit cards, and UPI make payments more manageable. You get instant payment acknowledgements for tax payments done through these modes. You get tax receipts instantly, which confirm your payment.
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The transactions are smooth and more secure when you use net banking, as you know the amount paid and the account from which you have paid. Keeping a record of the TDS Challan receipts lets you analyse the history of taxes paid.
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You can get all the information concerning your TDS Challan payment for the current year and last financial year by going to the TDS inquiry section of the net banking portal.
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You can view your TDS certificates via online bank records if your registered PAN matches NSDL records.
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If you have overpaid your tax, you will get the refund through ECS in your bank account, provided you have pre-validated your bank account under the income tax e-filing portal.
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The TDS returns need to be submitted quarterly and requires details like the amount of TDS deduction, TAN, Type of payment, and PAN Number of the taxpayer. There are different forms of TDS payment. You can find the details online without the need to go to the bank or related department.
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Submitting the documents through a bank portal minimises your endeavours of cross-checking them.
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To pay Advance or Self-Assessment Tax, GST, Direct Tax, TCS, and TDS, you can go through the net banking portal and follow the simple steps to complete your filing.
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Online banking has bulk payment and bulk upload options to pay taxes, so you can make multiple payments by simply uploading the bulk tax file.
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If you wish to carry out your transaction by visiting the bank, you can select the option from the Tax Payment portal.
Conclusion
Tax Deducted at Source or TDS is an essential payment you should pay on income, such as interest on fixed deposits, salaries, rent, etc. For a smooth process, you can choose net banking portals to make your tax payments quick and proficient.
