How to pay tds challan online

TDS means tax deducted at source—which is an integral part of income tax. Under the TDS system, the specific amount gets deducted as tax directly from the income at the source. It is deducted on various types of payment such as salaries, interest payments by banks, commission and rent payments, consultation fees, and professional fees. This tax amount further helps the government to collect direct income taxes very efficiently. Here’s a guide to know about the meaning of TDS, where it is applicable and online payment process of TDS along with other vital details. What is Tax Deducted At Source (TDS) TDS is a part of the direct tax mechanism which is considered as one of the modes of collecting tax under the Income Tax Act, 1961. It was introduced with the sole aim to collect the taxes from the very source of income or during the time of income payout. TDS refers to the amount of tax, which is deducted by the deductor, and then the same amount gets remitted into the account of the Central Government. The deductee from whom this amount has been deducted at source is eligible to receive the credit of the same amount on the basis of Here, a deductor is referred to any individual who has to make payments as per the Income Tax Act and thus have to pay TDS when specified payments are made. This tax amount is deducted at source at the predetermined TDS rates and the tax so deducted needs to be deposited with the government within a specified time period. For instance, the monthly ...

Introduction Girish moved to a metropolitan city for the sake of higher studies. He hailed from a small rural town and was surprised and fascinated to see the significant buildings and other impressive infrastructures of the city. He met with his broker in order to rent a place for living. The broker showed him a lovely apartment which Girish liked instantly. While paying the rent, he got to know that the landlord doesn’t get the total rent as he has to make a TDS challan payment after deducting a certain percentage from the rent. If you too want to know more about TDS challan payment and how to make TDS online payment, keep reading this blog post. What is TDS? It stands for tax deducted at source. The aim of tds challan payment is to collect tax from the very start of income. Specific nature of the charge, when made by a person to another person, shall deduct tax at the source and deposit the same into the account of the central government. It is an indirect form of tax that is administered by the Central Board of Indirect Taxes. Payments like salary, rent, commission, etc., when made by a person over a certain amount of limit, are expected to deduct a specified percentage from it before making the payment. This deducted amount is called TDS, meaning tax deducted at the source. What is a TDS Challan? The tds challan payment is made for depositing the deducted amount to the government. It is a single challan, and it is used for depositing the taxes that are collected under...

Before the introduction of TDS e-payments, businesses had to physically visit banks and make TDS payments. Without an expert’s services, small business owners spent hours manually calculating TDS. Some may hire a Chartered Accountant that again adds to the expenditure and may also delay the process as business owners must recheck and manually approve every payment. Central Board of Direct Taxes (CBDT) replaced the manual process of TDS payments by Online Tax Accounting System (OLTAS) in 2004. Electronic payment method was introduced to minimise TDS calculation errors and facilitate online transactions. The TDS amount applicable to businesses must be deposited through TDS Challan 281 to the Central Income Tax Department. TDS can vary according to the service availed by a business. The Income Tax Department is the sole authority to decide these rates. Because of the variance in Read on to know more about the TDS challan 281, methods of making TDS payments and how RazorpayX Payroll is simplifying the entire process for businesses. Tax Challan 281 Explained TDS Challan 281 is used to pay TDS and TCS (Tax Collected at Source) by corporates and non-corporate businesses. There are 2 modes for making TDS payments – Online and offline mode. Online Mode Step 1: Visit TIN-NSDL website Step 2: Select ‘e-payment: Pay Taxes Online’ from the ‘Services’ tab Step 3: Then, select Challan no./ITNS 281 from the options Step 4: Enter the following details: • Select deductees – 0020 for Company...