Tax Deducted at Source, generally known as TDS is tax collected at the source from where a person's income is generated. It was introduced to lessen tax evasion, as the fee would be deducted right at the time of income generation instead on a different date.
TDS does not apply to every earning individual. The tax payment structure is framed according to various income levels and categories of varied recipients.
The TDS system works with the concept of a 'deductor' deducting the imposed amount from the 'deductee's' source of income, mentioned under the Income Tax Act and depositing it into the government's account. Form 26AS is available for showing the amount which has been deducted at source and deposited into government funds.
TDS is applicable on various incomes other than salary. For example, brokerage, fees over professional or technical services, insurance commission, dividend etc.
IMPORTANCE OF TAN FOR TDS PAYMENT:
Tax Deduction and Collection Account Number, generally known as TAN refers to a ten-digit alphanumeric number mentioned in all TDS payments, returns or any documentation of the Income Tax Department. All deductors must say TAN in all TDS related documentation.
TDS ONLINE PAYMENT GUIDE-
● Step 1
Head over to the official site of ITD. Undermentioned is the link for logging into the TDS Online Payment portal: https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp.
● Step 2
There are various forms prescribed for different tax deductions. Challan ITNS is the one you need to select. It is used for depositing TDS by a company or individual deductee.
● Step 3
Fill in the details required in the Challan. Following are the details to be filled in Challan ITNS 281:
a) '(0020) Company Deductee' is to be selected if the deductee is a company. '(0021) Non- Company Deductee' is to be chosen by an individual deductee.
b) Then select the mode of payment. If the taxpayer himself is paying the TDS, choose '(200) TDS/TCS Payable by Taxpayer.'
If the payment is being made after a demand from the ITD select '(400) TDS/TCS Regular Assessment.'
c) Choose the type of payment over which the TDS paid. You can Google the TDS rates article for figuring out the prescribed amount paid.
d) Make the final payment. Payment can be made through Net Banking or Debit Card.
e) Mention the TAN details for the procedure of online verification. This step is mandatory as check the validity of TAN.
f) Mention the assessment year for which income is determined, and tax is liable thereon.
g) Fill in the rest of the details like email address, mobile number, etc.
● Step 4
Go through the Challan details thoroughly before clicking on the 'proceed' button.
After assuring that all the mentioned details are correct, select 'proceed', and you'd be directed to the payment page.
● Step 5
The NSDL portal will redirect you to the payment page of your bank. You'd be required to fill in the User ID and password and make the payment.
● Step 6
Once the payment is done, the dashboard will display CIN or Challan Interfoil. CIN contains the Challan details and other important information about the payment made.
Aforementioned are the simple steps you need to follow for filling up your online TDS form and making the TDS online payment.