If you deduct TDS (Tax Deducted at Source) but are unsure where or how to make the payment, it can lead to serious issues like penalties or interest. However, you can easily make TDS payments through the Income Tax Portal by following this step-by-step guide.
This guide is ideal for accounting students, accountants, and professionals managing TDS compliance. Follow these instructions carefully to ensure error-free payments.
Step 1: Access the Income Tax Portal
To begin, visit the official Income Tax e-filing portal by typing “incometax.gov.in” into your browser’s search bar. This will direct you to the portal’s homepage.
Step 2: Select the ‘e-Pay Tax’ Option
On the homepage, locate the ‘e-Pay Tax’ option and click on it. This will redirect you to the tax payment page.
Step 3: Enter PAN or TAN Details
- If you are making an Advance Tax payment for yourself, enter your PAN number.
- If you are paying TDS on behalf of another party, enter their TAN number.
Once entered, provide a valid mobile number to receive an OTP for verification. Enter the OTP and proceed.
Step 4: Verify the Party Details
After submitting the TAN details, verify the party’s name shown on the screen. This ensures you are paying TDS for the correct entity. Once confirmed, click ‘Continue’.
Step 5: Select the Financial Year and Assessment Year
Choose the relevant Assessment Year (AY) and Financial Year (FY) carefully:
- FY 2024-25 corresponds to AY 2025-26.
Then, select the appropriate payment category:
- TDS on Rent (Section 194I)
- TDS on Professional Fees (Section 194J)
Step 6: Enter TDS Amount and Payment Details
Specify the amount of TDS deducted. Remember that TDS payments must be made by the 7th of each month to avoid penalties. If you’re paying late, add applicable interest or penalty amounts.
Step 7: Select Payment Method
You can choose from several payment options:
- Net Banking
- Debit Card
- RTGS/NEFT
- Payment Gateway via UPI
For convenience, selecting UPI can make the process faster. After selecting the desired payment mode, proceed to the next step.
Step 8: Confirm Payment
Once you click ‘Pay Now’, review the terms and conditions, then click ‘I Agree’ and submit. This will redirect you to the selected payment gateway.
Using UPI, scan the QR code displayed and complete the payment. Upon successful completion, a payment confirmation will be generated.
Important Tips to Remember
- Always verify the party details before proceeding with the payment.
- Ensure the correct Assessment Year and Financial Year are selected to avoid errors.
- Pay TDS before the 7th of each month to prevent penalties and interest.
Useful Resources
For further insights and detailed walkthroughs, you can refer to this helpful YouTube guide by Vijay Zine: TDS Payment on Income Tax Portal – Step-by-Step Guide.
FAQs on TDS Payment
1. What is the deadline for TDS payment?
TDS payments must be made by the 7th of the following month. For instance, TDS deducted in March must be paid by April 7th.
2. What happens if I fail to pay TDS on time?
Failure to pay TDS on time results in interest (1.5% per month) and potential penalties.
3. How can I check if my TDS payment was successful?
You can verify TDS payment status on the Income Tax Portal under the ‘Challan Status Inquiry’ section.
4. What is the difference between a TAN and a PAN?
TAN is required for entities deducting TDS, while PAN is for individuals paying advance tax.
5. Can I pay TDS using UPI?
Yes, the Income Tax Portal allows TDS payments through UPI, Net Banking, Debit Card, and RTGS/NEFT.
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