TDS or Tax Deducted at Source is a way of collecting the Income Tax by the Government of India. The TDS mechanism ensures that the Government thus receives income tax from the assessee at the time of transaction – thereby minimizing the tax default risk and also ensuring timely collection of the tax. The purpose of this article is to tell the user as to how is TDS paid online through the income tax department.
TDS is deducted by the person who is paying the income. Thus, the tax is deducted at the source of the income itself. The tax which is deducted is then deposited by the payer of the income into the income tax department account on the behalf of the payment recipient as the TDS payment. The TDS payment is thus deemed to be the payment of the income tax by the recipient at the time of his assessment.
TAN registration or the Tax Deduction and the Collection Account Number (TAN) is, however, a 10 digit alphanumeric number which is however required to be obtained by all the persons who are thus responsible for the purpose of deducting or collecting the tax. All those persons who are thus required in order to deduct the tax at source or to collect tax at source on the behalf of the Income Tax Department are however required to obtain TAN.
The following steps are to be followed. In order to make online TDS Payment, one is firstly supposed to login to the e-Tax Payment System and is then required to follow the steps below:
Step 1: Firstly, you are required to select the relevant challan online, as it is applicable:
- Income Tax Challan No ITNS 280
- Income Tax Challan No ITNS 281
- Income Tax Challan No ITNS 282
- Income Tax Challan No ITNS 283
Step 2: You are then required to enter its PAN / TAN as it is applicable. There will be an online check on the validity of the PAN / TAN which is entered.
Step 3 : If the PAN/ TAN is valid the taxpayer will be allowed to fill up the other challan details such as the accounting head under which the payment is made, name and the address of the TAN and also in order to select the bank through which the payment is, however, to be made, etc.
Step 4: On the submission of the data which is entered, a confirmation screen will be displayed. If the taxpayer thus confirms the data which is however entered in the challan, it will thus be directed to the net-banking site of the bank.
Step 5: The taxpayer will log into the net-banking site with the user id/ password which is provided by the bank for the net-banking purpose and also to enter the payment details at the bank site.
Step 6: On the successful payment a challan, a counterfoil will be displayed containing the bank name, payment details and the CIN through which the online payment has been made. This counterfoil is a proof of the fact that the payment is being made.
Thus after following the above-mentioned steps, a person would be able to fill his TDS online, through the Income Tax Department site.
This article has been contributed by Shruti Kakkar, Content Writer, LegalRaasta- an online platform for GST Software, ITR Filing, TDS Return Filing etc.