{"id":6103,"date":"2021-07-29T18:11:47","date_gmt":"2021-07-29T12:41:47","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=6103"},"modified":"2025-01-29T15:57:59","modified_gmt":"2025-01-29T10:27:59","slug":"online-tds-payments-due-dates-penalties","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/online-tds-payments-due-dates-penalties\/","title":{"rendered":"Online TDS Payments: Procedure, Due Dates & Penalties"},"content":{"rendered":"

Every business is required to deduct TDS (tax deducted at source) before making contractor payments, salary payouts, payments to professionals and more. The Income Tax Department mandates TDS to be collected at specified rates every month. <\/span>
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\n<\/span>Read on to know everything about making monthly TDS payments, TDS rates<\/a>, due dates & penalties for late payments<\/a>.\u00a0<\/span>
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What is TDS?<\/b><\/h2>\n

TDS (Tax deducted at source<\/a>) is a mode of direct tax collection set by the Income Tax Department in India. Every business or individual is required to deduct a certain percentage as TDS before making the full payment to contractors, professionals or employees.<\/span><\/p>\n

Pay TDS Now!<\/a><\/div>\n

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Example for understanding a TDS payment<\/h2>\n<\/div>\n

Let\u2019s say a Private Ltd. Company (Meenakshi) makes a rent payment of Rs 200,000\/- to a builder.<\/p>\n

Now, Meenakshi Pvt. Ltd. is required to deduct & deposit TDS of Rs 20,000- (10%) to the government and make a net payment of Rs 1,80,000\/- to the builder.<\/p>\n

What is the process of depositing TDS?<\/b><\/h2>\n

Any individual or business need to deposit TDS to the Central Income Tax Department through TDS Challan 281. <\/span>
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\n<\/span>There are two modes of depositing TDS – offline and online (e-TDS) mode.\u00a0<\/span><\/p>\n

Offline TDS payment<\/b><\/h2>\n

Deductors can deposit TDS by physically visiting an authorised bank branch and submit the challan. Once the challan is successfully submitted, the bank will issue a stamped receipt or counterfoil as proof of TDS payment<\/a>.\u00a0<\/span><\/p>\n

Online TDS payment<\/b><\/h2>\n

Corporate and non-corporate businesses can deposit e-TDS on the NSDL government portal by following these steps<\/span>
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\n<\/span>Step 1:<\/strong> Log in to NSDL\u2019s website <\/span>
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\n<\/span>Step 2:<\/strong> From the \u2018Services\u2019 tab, select \u2018e-payment: Pay Taxes Online’<\/span>
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\n<\/span>Step 3:<\/strong> Select the relevant challan i.e. ITNS 281\u00a0<\/span><\/p>\n

Step 4:<\/strong> Fill in the challan with all the details:\u00a0<\/span><\/p>\n