How to Pay TDS Challan 280, 281 Online? Tax deducted at source or TDS a form of indirect tax managed by the Central Indirect Tax Board.
Under TDS, the person responsible for making some specific payment like salary, interest, commission, rent, etc. Is liable to deduct a certain percentage of tax (as specified) before making full payment to the other party.
Under the Income Tax Act, every person responsible for deducting TDS is also responsible for depositing this TDS amount in the Income Tax Department.
TDS Challan 280
Challan 280 used to pay advance tax, self-assessment tax, and regular assessment tax. You have the option to pay income tax through Challan 280 online through the internet.
Earlier you could pay tax at designated branches of the bank but this option discontinued by most banks. To pay tax online, you must have a pure banking account with any bank.
Income tax for advance tax, self-assessment tax, surcharge, regular assessment tax, distributed profit or income and others can make through payment 280.
This form of challan can pay in two ways – online or offline. Challan number / ITNS 280 required irrespective of the mode opted by the individual for payment of income tax and corporation tax. Therefore, it should be paid by the depositor.
How To Pay the online payment of income tax through challan 280
- Login to http://www.tin-nsdl.com
- Click on an e-pay tab or pay taxes online click and select Challan 280. Once the screen with the form opens, enter the following details:
- PAN number
- Your address
- Assessment year for which the tax is to be paid
- Minor Head code
- Applicable Tax (income tax in case of salaried employees)
- Type of payment: You have to select 100 in case of advance tax, 300 for self-assessment tax, and 400 for tax on regular assessment for making any payment only when the demand has been raised by the income tax department.
- Select the name of the bank from the drop-down list of banks
- After filling in all the required details, click on the proceed button. The TIN system will display all the details you entered with your name appearing in the Income Tax Department’s database for the PAN you entered.
- Note: PAN is mandatory for the payment of income tax. Payment of tax will not proceed without a valid PAN number.
- You will get the option to verify the details you have entered. If you find an improvement, click the Edit button to correct the information. If all the details entered are correct, click submit. The tin system will take you to its net-banking site.
- Login to your net banking account with the user ID and password and enter the payment details. You have to divide your salary into various components like income tax and education cess etc.
- Your bank will process online transactions on debit and successful payment to your account; The system will generate a printable acknowledgment indicating the CIN (Invoice Identification Number). The challan acceptance will contain the CIN number, payment details, and bank name through which the payment has been made. Challan acceptance is proof of payment made. After a week of making the payment, you can verify the invoice status online in the Challan Status Inquiry section on the NSDL-TIN website using your CIN.
Precautions while filing income tax challan 280
- Quote correct PAN number and name and address on Challan used for depositing tax.
- Use a separate Challan for each payment and fill the correct code number corresponding to the respective payment type.
- Do not make mistakes in indicating FY (Financial Year) and AY (Assessment Year) while filling the respective Challan.
- Do not use the same challan for making payments of different types of taxes such as advance tax, self-assessment tax, etc.
READ ALSO : How to calculate TDS on Salary?
TDS Challan 281
Challan 281 Used to pay the tax deducted at source (TDS) under any head of income or tax collected at source (TCS) by corporate or non-corporate deductors.
TCS or TDS collected from the buyer at the time of sale of goods specified by the seller. Taxpayers can file TDS Challan 2 can online or offline. Challan Identification Number (CIN) issued when payment made online or through some mode given by the bank.
Types of payment covered under challan 281 are:
- TDS/TCS payable by a taxpayer
- TDS/TCS against regular assessment demand
How To Pay the online payment of income tax through challan 281
- Login to http://www.tin-nsdl.com
- Select Challan 281 for TDS/TCS payment.
- Select the deductee code. Deductor required to select code 0020 in case of TDS of a company deductee and 0021 in case of a non-company deductee. The following details are required to fill in:
- TAN number and Assessment Year.
- Personal details such as an address, mobile number, and email ID.
- Code of payment: The type of payment with the correct code required. The codes are given in Challan 2, 2001 are 200 and 400. Code 200 is for TDS / TCS payable and code is 400 for TDS / TCS payable on regular assessment.
- Type of TDS: The deductor has to select the section of payment under which TDS paid. TDS can pay in respect of salary, rent, payment made to subcontractors, etc. Challan 281 contains a list of classes such as:
- Section 94C: For TDS deducted on the payment made to a subcontractor
- And Section 92B: For TDS deducted on the payment made as salary
- Section 94I: For TDS deducted on the payment made as rent
- Section 94J: For TDS deducted on the payment made to professionals
- The Deductor needs to select the bank through which he intends to pay the tax. He should have a net banking facility and a valid account to perform the transaction.
- After filling in the above details, the deductor will have to pay by logging in to his net banking account after filling in the valid username and password.
- After successful payment, the system will generate a receipt. The deductor required to keep the receipt as proof of payment.
- The Deductor can view the status of the invoice online after one week of making the payment. The deductor can check the status using a CIN number or TAN number.
Precautions while filling Challan 281 online
- Correct 10-digit TAN number and name and address of deductor on each invoice used to collect tax.
- Use a separate challan to collect tax deducted under different sections. For example- use invoice 94C for TDS on payments to contractors and subcontractors and use invoice 94I for TDS on payment of rent.
- Select the correct code number as specified for each payment type.
- Do not make a mistake in indicating AY (Assessment Year) and FY (Financial Year) while filling challan.
- Every business division is only required to file an invoice with a TAN number. If the deductor has a separate TAN number for a different business branch, he is advised to file tax under a TAN number and the remaining TAN numbers are surrendered.
How to check TDS Challan Status
- Visit the TIN-NSDL website https://tin.tin.nsdl.com/oltas/index.html
- Select either CIN (Challan Identification Number) based view or TAN based view
- Fill in the required details to view the Status
- Tax Deductors may also download the Challan Details file for a selected period through TAN based view, which can help verify the Challan entries filled in the e-TDS/TCS Statement.
READ ALSO : What is an Income Tax Refund?
READ ALSO : TDS Rates Chart FY 2020-21 In India