TDS Remittance Process

Tax Deducted at Source (TDS) deducted by the Employer (Deductor) needs to be deposited with Government within the specified due date. Though there are many ways to make the payment, Online payment though government portal is mostly used payment method. This process involves following steps;

1. Login & Navigate

2. Select Assessment year and Section

3. Enter TDS details & Make Payment

1. Login & Navigate:

  • Visit official Income Tax portal https://www.incometax.gov.in/
  • Login to the portal using TAN and Password
  • On the Dashboard, click e-File > 'e-Pay Tax'. You will be navigated to the e-Pay Tax
  • On the e-Pay Tax page, click the 'New Payment' option to initiate the online tax payment.

2. Select Assessment year and Section
  • Select relevant Assessment year (Example: Select AY 2024-25 if you would like to remit TDS for FY 2023-24).
  • Click on 'Proceed' in 'Pay TDS' option.
  • Select the applicable TDS section from the options given and click on 'Continue'

What is TDS Code?
To refer to the exact payment of TDS under each section, Income Tax Department has allocated a three digit code to each section. This will be last 3 digits of any section.

Eg: TDS for payment of salary shall be deducted under section 192 of Income Tax Act, However, while making the TDS remittance to Govt., following payment category needs to be made with specific TDS code;
Code 92A: Payment to Govt. Employees other than Union Government Employees: 
Coed 92B: Payment of Employees other than Govt. Employees
Eg 2: TDS for Payment of Rent is made under Section 194I, TDS Code for the same is 94I

Practice Question:
Assume TDS computation has been done against salary payment for the last month. In Simulation interface below, please select relevant Assessment year and Section to proceed further.

3. Enter TDS details & Make Payment
  • Select the 'Tax Applicable (Major Head)' i.e., Other than company deductees (0021) for non- corporates or Company deductee (0020) for corporates

Various type of persons under each head:
Other than Company Deductees (0021): Individual, Firm, LLP, AOP, BOI, etc
Company Deductee (0020): Private Limited Company and Public Limited Company

  • Enter the TDS payable under relevant heads i.e., Tax, surcharge, cess, interest, penalty and Fee u/s 234E
  • Select 'Type of Payment' (Net Banking / Debit Card / RTGS / Pay at Bank) and click on Continue. Select the Bank Name to use and click ‘Continue’ to preview and pay.
  • Check the details in the preview and click on Pay and Submit to the Bank.
  • The taxpayer will login to the net- banking site with the user id / password provided by the bank for net-banking purpose and enter payment details at the bank site.
  • On successful payment a challan, a counterfoil will be displayed containing CIN, payment details and bank name through which e- payment has been made. This counterfoil is proof of payment being made. 
  • Click on Download button to download the challan for future refernce.  Another option is download the challan from Payment History of ITD Portal.

Click on Make Another Payment to make next payment

Sample copy of Challan has been show for your reference:

TDS codes used while making payments is used for-

Denoting the Head under which the TDS is remitted
Denoting the category of the person towards whom payment is being made
Denoting the period for which the TDS payment is made
None of the above

The challan for making TDS payment by a Corporate and a Non-Corporate assessee are-

Same challan for all category of taxpayers
Different challans for each category of taxpayers
Different for Government and Non-Government category
Different for Corporate and Non-Corporate category