What is TDS?
TDS stands for Tax Deducted at Source and as the name suggest the tax get deducted at the source itself periodically or occasionally. We can take an example to understand TDS suppose Mr.A is paying his fee Rs.10000 to an organization called as B. So, in this case B will instantly deduct TDS 10% and transfer the amount to the government bank. Income tax department will issue a certificate to B after receiving the TDS amount. That means tax get deducted at the source itself automatically and an individual does not have to do undergo any official formality to pay TDS. TDS is a constant source of income for the government to run the country and by this process citizen pay the tax thought out the year in small installment. After every financial year if TDS if found less than the income tax amount calculated then the rest amount need to be paid as income tax. On the other hand if TDS found more than income tax amount then extra amount paid can extra amount can be availed by filling income tax return.
Why we need TDS?
TDS comes under Income Tax Act, 1961 CBDT that is Central Board of Direct taxes regulates this under IRS that is Indian Revenue Services. TDS is very important part of our Indian tax system as it allows you to pay tax in small amount throughout the year. Instead of paying the entire year tax at a time which usually turn out to be a huge amount government allows you to pay the same in small units. With the help of TDS government of India get constant flow of cash to keep India going. So, it can be understand TDS is helpful for both citizen and as well as for the government. At present TDS is applicable on Salary, professional fees, Commission, interest, rent etc.
How to pay TDs online?
TDS as you know now is deducted at the source itself and TDS collector need to send the amount to the government bank within a specified deadline. So, to pay the TDS online there are certain steps need to be followed which are mentioned as below
1: Tax collector need to visit NSDL official website that is https://nsdl.co.in/ well specific link for TDS is https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
2: Under e-payment tab you will get many option. You need to go to TDS/TCS section and select ‘CHALLAN NO./ITNS 281’.
3: After following the above step you will get to see the following form. Each and every detail need to be fed as asked for:
-You will see the option called “Tax Applicable” and on that another two option is give “Company Deductees” or “Non- Company Deductees”. If the payment is made to you for a company then select company deductees if not select another option.
-Now, enter the Year and TAN number
-After that enter the state and pin code correctly. You will see a drop down option select your option from their
-Now, you need to select the option TDS deducted and the same is being paid by you or TDS on regular assessment
-Payment mode need to be specified. Here you will get two option “Mode of Payment” and “Nature of Payment”
-After every detailed is entered correctly hit on submit button
4: On submission of every detail correctly most importantly TAN number it will display the tax payer name with other detail
5: You need to check and cross check every detail entered and then you will be redirected to net banking site for final payment
6: After successfully entering of banking credentials your payment will be successful.
7: You will be given an e-challen on successful submission of your tax containing CIN number. Well, you do not have to download anything as it is a cloud base you can get your e-challen any time anywhere. At the end of the financial year while filling tax return you can download your e-challen as a proof of your return.
TDS is a very important part of our Indian Taxation system and this helps our country going. With introduction of e filling it has become very easy to tax payer to pay the tax online without any hassle. For more details, you can click here to know more on TDS online payment.