Process of Online TDS or TCS or Outstanding Demand Payment

Many users get confused regarding online payment of TDS/TCS and same way if there is any outstanding demand against our TAN then how to resolve it. Hence today I come up with this article which wil give you the clarity regarding online payment of TDS and outstanding demand payment.

1. Online TDS/TCS or Demand Payment with Challan ITNS 281

a) Some Important Information

• Challan No. ITNS 281 is used by the Deductors to deposit Tax Deducted at source/Tax Collected Source (TDS/TCS) and Demand Payment.
• User should have Internet Banking Account in order to avail facility of Online payment of Challans.
• Following details required to be filled while payment of Challan ITNS-281:

1. Tax Applicable: This column has two options:

• • • 0020: This is applicable in the case of income tax of companies ( If Deductee is company).
    • 0021: This is applicable to income tax for other than companies (If Deductee is not a company i.e. an individual, HUF, partnership firm, etc.).

2. Assessment Year.

3. TAN No., Name and Address

4. Type of Payment:

• • • 200 ( TDS/TCS payable by Taxpayer)
    • 400 ( TDS/TCS payable regular Assessment).

Note: In case of Online Demand Payment Deductor can select Minor Head 400 ( TDS/TCS Regular Assessment ).  For TDS/TCS payment Deductor can select Minor Head 200 ( TDS/TCS payable by Taxpayer).

5. Nature of Payment: Deductor has to select Section Code as per the section under which TDS/TCS is deducted

b) Brief Steps:

Go to www.tin–nsdl .com website .

Step 1: Click on “e- payment Pay Taxes Online” available at home page under “Services” tab.

Step 2: Select Challan ITNS 281 for Demand payment from the list. Challan ITNS-281 Form will appear.

Step 3: Select Major Head (0020/0021), Enter valid 10-digit Tax Deduction and Collection Account Number (TAN), Assessment Year, Address. Minor Head/Type of Payment (200/400), Nature of payment, Mode of Payment & Bank Name then Click on “Proceed” button.

Step 4: Confirmation Screen will appear to confirm the details entered in Challan . On Confirming the details entered in Challan. Click on “Submit to Bank” button.

Step 5: Deductor will be re-directed to the Internet- Banking site of the bank. Enter the User- ID and Password provided by the bank.

Step 6: Enter payment details at Bank website and make the TDS payment.

Note: On Successful payment, A Challan counterfoil will be generated containing Challan Identification Number (CIN), payment details and Bank Name through which e- Payment has been made. This counterfoil is proof of payment being made.

2. How to Check Total Outstanding Demand

Brief steps to check total online outstanding demand are as under:

Step 1: Login on Traces website as deductor.

Step 2: Click on “Dashboard”.

Step 3: After clicking on “Dashboard”. There is a tab of “Total Outstanding Demand”.

Step 4: Click on “Total Outstanding Demand” demand table will appear on the screen,

• User can click on “Prior year” hyper link to view previous years demand.
• User can click on “Manual Demand” amount to close the demand via Tag Challan and navigate to “Tag/ Replace Challan”.
• User can click on “Financial Year” against Processed Demand (Justification available from CPC) to view demand details and navigate to “Default Summary”.

Step 5: User can view the “Default Summary” across quarters and form types in a financial year.

Step 6: User can click on particular quarter and can proceed with Online correction by clicking on the link “Request for Correction”.

(Republished with Amendments by Team Taxguru)