Procedure for Online TDS Payment? Check TDS Payment Status ?

TDS (Tax Deducted at Source) is a mechanism in which tax is withheld at the source and TDS payments are made electronically. 

Tax deductions are made when certain payments are made, such as rent, interest and so on. It is the tax amount withheld by the liable deductor and paid to the tax department on behalf of the assessee. The TDS amount withheld must be reported with the government by the due dates stated by the TDS deductor. It’s important to remember that TDS can only be withheld if your net taxable income exceeds your total taxable cap. 

TDS will not be withheld if the total is less than the taxable cap. TDS (Tax Deducted at Source) payments can be made electronically at the NSDL portal and the procedure for the same is described below. Also Read: Big relief to SBI customers, now you can change the name of the nominee sitting at home, this is the way

Procedure to make TDS payment online

• Visit the E-Payment Income Tax Department website.
• Select the challan no. ITNS 281. This challan number is to be used for depositing TDS/TCS by company or non-company deductee.
• Select the type of deductee.
• If the deductee is a person other than company, then you should select (0021) Non-Company Deductee, else you need to select (0020) Company Deductee.
• Enter your TAN details. This will be used for an online verification on the validity of the TAN.
• If TAN details are not available in the database of the Income Tax authorities, then you will not be allowed to proceed any further.
• Select the Assessment Year (AY). The Assessment Year is the year immediately following the financial year in which the income is evaluated. For example, for income earned between 1 April 2015 and 31 March 2016, the assessment year will be 2016-17.
• Enter other challan details like accounting head under which the payment is to be made. The name, address, email address and contact details of TAN holder need to be furnished.
• Select the type of the payment.
• If it is a normal payment, then select (200) TDS/TCS Payable by Taxpayer or if it is a payment against the demand raised by the I.T. Department  e.g. payment of interest or late fee under section 234E then select (400) TDS/TCS Regular Assessment (Raised by I.T. Department)
• Select the nature of payment such as payment of insurance commission, rent, fees for professional services, etc.
• Also, you will need to select the bank through which the TDS will be deposited.
• On submission of the data, a confirmation screen would get displayed.
• After checking it thoroughly, you need to confirm that all the data entered in the challan has been entered correctly and true to the best of your knowledge.
• Post your confirmation, the page will be re-directed to the net-banking page of your bank.
• You are now required to login to the net banking page, using the User ID and password and make the payment.
• After a successful online TDS payment, the system displays a challan counterfoil.
• The challan contains CIN – Challan Identification Number that shows the payment details, bank name through which the e-payment has been made, Bank Branch Code (BSR) and date of tender of challan.
• The collecting bank branch transmits the details of taxes deposited by you to the “Tax Information Network” (TIN) through the Online Tax Accounting System (OLTAS).
• You can also verify the status of the challan in the ‘Challan Status Inquiry” on the NSDL – TIN website, post seven days of making the payment using the CIN.

If you face any problem at the NSDL website, you can contact the TIN Call Centre at 020 – 27218080 or write to them at tininfo@nsdl.co.in. Also Read: Big News: Haryana government’s decision, these girls will get 1000 rupees every month

How to Check TDS Payment Status

Assessees can check the TDS payment status online through the online portal of Centralized Processing Cell. Here’s how to do it :

1) Visit TDS CPC website at https://www.tdscpc.gov.in/app/tapn/tdstcscredit.xhtml

2) Enter the captcha code and click on “Proceed”

3) Enter details such as PAN of deductee, TAN of deductor, Financial Year, Quarter and Type of Return. Click on “Go” now.

4) TDS credit of the taxpayer is displayed on the screen

TDS Filing Due Dates For AY 2021-22

TDS Online Payment FAQ’s

Q.1 – What are the payment instructions for the Corporate Customer?

The payment instructions for the Corporate Customer are as follows:

Fill the important details which are ad hoc for the payment on the NSDL /Treasury website.

• Opt for ICICI Bank for payment.
• Make sure you have automatically taken to the Bank’s Corporate Internet Banking site.
• Enter the required payment details.
• Address the transactions according to the “Company’s Approver Matrix” given by the system.

Q.2 – I tried claiming tax refund by filing ITR but got unsuccessful because of mentioning wrong account number. How can the right account number be submitted to claim the tax refund?


The right bank account number can be submitted by selecting the option of refund reissue. Steps to apply for refund reissue are follows:

• Go to the website https://incometaxindiaefiling.gov.in and Login
• Go to “My Account” Choose – “Service Request”
• Choose Request Type – “ ‘New Request’”
• Choose “Refund Reissue” from the requested category.
• Update the details of a bank account.
• Click → “Submit”.

Q.3 – When can TDS be deducted?

In general, the word “TDS” is used wrt to employer and employee relationship. A TDS is deductible every month from employees’ salary. An employer can deduct TDS while paying salary to the employee based on the income tax rate applicable to the employee. 

Rest other payments which come under the ambit of TDS deduction are as follows: Payments to contractors, Payment of interest on investments, Payment of rent, Payment for professional or technical services, payment of compensation on procurement of immovable property and so on. TDS on all payments is deductible at certain predefined rates, until and unless it is not tax-exempt.

Q.4 – How is Interest Calculated on delayed payment of TDS?

Let us understand it with an example. Let us suppose the TDS is deducted on 1st August and the due date for remitting the TDS is 7th September. But the tax is deposited on 8th September i.e. one day later from the deadline. Then the interest will leviable from 1st August to 8th September means for 2 months.

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