TDS Payment is liable to be made by any assesse who has deducted TDS at the time of incurring any expenditure. The Due Date for TDS Payment is separate for Govt. and Non-Govt. assessee’s as mentioned below

Due Date for TDS Payment in case of Govt. Assessee

S. No.ParticularsDue Date
1.Tax Deposited without ChallanSame Day
2.Tax Deposited with Challan7th of next month
3.Tax on perquisites opted to be deposited by the employer7th of next month

Due Date for TDS Payment in case of Non-Govt Assessee

S. No.ParticularsDue Date
1.Tax Deductible in March30th April of next year
2.Other Months and Tax opted to be deposited by the employer7th of next month

The Assessing Officer may with the prior approval of the Joint Commissioner permit quarterly payment of TDS as specified in the table below:-

S. No.Quarter ends onDue Date
1.30th June7th July
2.30th September7th October
3.31st December7th January
4.31st March30th April

It is mandatory for all corporate assesses and all other assessees liable for Tax Audit under section 44AB of the Income Tax Act to deposit the TDS Online. Assessees who do not fall in the above 2 categories are at the option of either making online payment or by depositing the same with the prescribed banks.

Procedure for TDS Payment Online

The following procedure is to be followed for making Payment of Tax Deducted at Source. It shall be noted that TDS Payments cannot be made without a valid TAN No. In case, you still dont have a TAN No., refer article on How to apply for TAN No.

  • Enter your TAN No. based on which there would be an online check on the validity of the TAN entered for TDS Payment
  • If the TAN entered by the taxpayer is found to be valid, the taxpayer would be allowed to fill up other challan details like the accounting head under which the payment is to be made, name and address of TAN etc.
  • On submission of the data, a confirmation screen would be displayed. If the taxpayer confirms the data entered in the challan, the page would be routed to the net-banking page of the bank as mentioned by you in the challan through which the payment is to be made.
  • The Taxpayer would now be required to login to the net-banking page of the bank with the user-id and the password as allocated by the banker and make the TDS Payment
  • On successful TDS Payment, a challan counterfoil would be displayed containing the Challan Identification Number (CIN), payment details and the bank name through which e-payment has been made. The counterfoil is proof of the payment being made. You can also verify the status of the challan in the “Challan Status Inquiry” on the NSDL-TIN website after a week of making the payment using the CIN so generated

After depositing the TDS with the Income Tax Department, the Deductor shall issue a TDS Certificate in Form 16/ Form 16A on an annual/quarterly basis as may be applicable

If any problem encountered at the NSDL website while entering non-financial data then contact the TIN Call Center at 020 – 27218080 email them at [email protected] If any problem encountered while entering the financial details at the net-banking webpage of your bank, then you should contact your banker for assistance.

Interest on Late Payment of TDS

In case the assesse deposits the TDS Payment after the due date of payment of the Tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the Govt. Earlier, the Interest liable to be paid was 1% but this has been increased to 1.5% pm with a view to discourage the practice of delaying the deposit of tax after deduction.

Interest @ 1.5% is liable to be paid from the date on which the TDS was deducted and not from the date the TDS was due. This can be explained with the help of an example.

For example: TDS was deducted on 25th June and the due date for TDS Payment was 7th July. The assessee fails to deposit the TDS by 7th July. In such a case, the Interest would be calculated from 25th June and not from 7th June.