Making TDS Payments Online in India – The Complete Guide


The Central Board of Direct Taxes (CBDT) is a statutory body under the Ministry of Finance in India. The CBDT administers India’s indirect tax laws, including the Income Tax Act and its rules. The Income Tax Department also manages various schemes and initiatives, such as direct tax collection through TDS payments and e-filing. By making payments online, you can reduce your time spent on paperwork while ensuring that they are up-to-date at all times

An overview of TDS payments

TDS is a tax deducted at source, which means it’s paid by the person who pays your income. It’s not directly paid by you and you don’t have to worry about it.

  • Income: Anything that earns money for you such as wages or interest payments
  • How much TDS will be deducted? There are different rates for different types of incomes, but most businesses deduct 20% of all gross income from their employees (with certain exceptions). For example: if someone has an annual salary of Rs 10 lakh per annum and pays taxes on it through their employer, then they would have to pay TDS in the amount of Rs 2 lakh per year (20% x 10 lakhs = 20000/-)

What are TDS payments?

TDS stands for tax deducted at source. It is a way of deducting tax from payments made to you from your bank account, credit card or Paytm Wallet.

In simple terms, if you pay for something with your credit card or debit card and the merchant does not charge any sales tax on the transaction then TDS will be deducted automatically by them since they are considered as an agent of government and hence they have to pay taxes along with other expenses incurred by them. This means that all payments made by consumers through their bank accounts/credit cards etc., would have been subject to TDS charges which need not be paid upfront but can be deducted later when required (i) When filing Income Tax Return (ITR),(ii) In case of PAN registration under Section 139AAGZCAs).

How do I pay TDS?

How do I pay TDS?

There are three ways to pay your TDS: online, through an agent or direct. Here’s how to do it:

  • Online payment – Through the official website of any bank (e.g., and select ‘Payment Service Charges’. You will be directed to another page where you can choose from many different options like RTGS, NEFT or IMPS transfer etc., depending on which mode of payment has been selected by your bank in advance;
  • Agent payment – Agents such as Kisan Credit Cards provide this facility for farmers who may not have access at all times with their banks during working hours due t their profession or location;
  • Direct payment – If none of these options suit your requirement then one can go directly through their respective branches/branches near them without any hassle whatsoever!

What is the TDS due date?

The TDS due date is the 10th of the following month. If it falls on a weekend or holiday, then you will have to make your payment on the next working day.

Who can use the TDS challan ITNS 281?

The ITNS 281 is a form you can download, fill out and send to your bank. But before you do that, make sure you meet the following requirements:

  • You are registered with the Income Tax Department as an individual or business entity. If you aren’t, contact them to get registered (or check out our guide on how to register).
  • You have a PAN card number and bank account(s). If not, go back up and read this article again!

What are the benefits of paying taxes online?

  • Reduced paperwork.
  • Faster processing of your TDS payment.
  • Reduced chances of errors, as there are fewer people involved in the process and they are generally well-trained to handle your case. The best part is that you don’t have to wait on long queues at banks or post offices! You can pay your taxes online from anywhere in India without having to leave home or visit an office or bank!

The step by step process for making TDS payments online in India

  • Log in to the TDS portal.
  • Select the challan number and challan type from the drop-down menus.
  • Enter your PAN number and other details as required by the government. The last four digits of a person’s Aadhaar number are always used for filing TDS returns on their behalf, even if they don’t have an Aadhaar card yet (you can also use this link to generate one).
  • Select payment mode from the drop-down menu: Cash deposit; Bank transfer; Debit card credit; Credit card debit etc., depending on what type of bank account you have with them (if any). Click Pay Now and make payment via whichever method has been selected for you!

Stay on top of your business. Make sure your TDS payments are up to date.

TDS payments are a legal obligation. If you don’t make your TDS payments, the government can impose penalties on you. These include:

  • A fine of up to Rs 1 lakh (for the first offence) or Rs 10 lakh (for repeat offences)
  • Cessation of business operations for up to six months

If your company is not in compliance with the tax laws and regulations, it might find itself at risk for other issues as well—including legal action by customers and creditors.


I hope this article has helped you learn more about how to make TDS payments online in India. If you need any further assistance or have any questions about the process, please feel free to contact us at [email protected].


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