Before knowing how to make TDS Payment, we must know what TDS is?
TDS is Tax deducted at source. It is collected by different assessee in different areas. Mainly the deductor is a employer or in case of rent, he is a tenant, etc. In simple words, one who is going to pay you for your goods or services or any other work, if applicable, will deduct taxes from your income.
After collecting the taxes on behalf of his employee, he is required to deposit this amount with the government.
TDS Payment is made to the government after deducting it from the payable amount that is meant to be paid to the payee.
It’s the deductor who makes the TDS payment. There are two methods to do so. They are –
1. Online Method
2. Offline Method
Online Method: –
• The taxpayer must have Internet banking facility or debit card of any of the authorized banks mentioned below in this article.
• Then you should visit this website of Tax Information Network of Income Tax Department here.
• On the menu page, there will be options given regarding the areas, for which TDS has to be deposited. Such as TDS on rent, TDS on sale of property etc.
• Challan for each category is also mentioned there. So you will have to select the challan for which you are going to deposit taxes.
• On the next page, fill in all the details such as PAN number of the payee or taxpayer, your TIN number, your accounting head, name and address of TAN, etc.
• On the same page, select the bank, using which you will be going to make the payment.
• Select the mode of online payment. Such as Internet banking or through debit card.
• Fill in your bank details and make the payment.
• After the payment is successful, a “challan counterfoil” will be generated, which will contain the CIN number, payment details and name of the bank from which the payment has been made.
• This Challan Counterfoil is proof of payment. So, you must keep it safely.
• In case of any discrepancy, you will be required to furnish this counterfoil.
Offline Method: –
• You will need to fill in Challan 281 and will be required to deposit the same with authorized bank branch.
• You will receive a payment slip after successful payment.
• You must keep the payment slip safely.
• In case of any discrepancy, this slip will require as a proof of payment.
Authorized Banks through which TDS Payment can be made, is mentioned below alphabetically: –
• Allahabad Bank
• Andhra Bank
• Axis Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank
• HDFC Bank
• ICICI Bank
• IDBI Bank
• Indian Bank
• Indian Overseas Bank
• Jammu & Kashmir Bank
• Oriental Bank of Commerce
• Punjab and Sind Bank
• Punjab National Bank
• State Bank of India
• Syndicate Bank
• UCO Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank
Important Points: –
• Electronic payment or online payment of TDS is must for all corporate assessee and other assessee (except company) who comes under the purview of section 44 AB of Income Tax Department. Meaning, those required to get the tax audit done.
• In case, the TDS is deducted by the government, then it automatically get deposited with the same. No counterfoil is generated here. Though one can get a certificate for the same from assessing officer.
• TDS must be deposited on time, failing of which may incur a penalty.
• Once the tax is deposited with the government, the assessee must issue a TDS certificate to the payee.
• The payee or taxpayer, in whose behalf tax has been deposited with the government, can claim tax credit on the basis of the Form 26AS or TDS certificate issued by the deductor or employer.
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