E-TDS payment steps

Dear Sathish!

E-PAYMENTS OF TAXES:

Ø  Payment of taxes through electronic mode has been made compulsory from 01.04.2008, for (i) Corporate deductors and (ii) All deductors, not being company, for whom the provisions of 44AB of the Income Tax Act, is applicable (i.e Tax Audit Cases).

Ø  The tax deductors have to make their tax remittances through the internet using the ‘net banking facility’ provided by the authorised banks for this purpose.

Ø  At present, almost all the nationalised banks besides a good number of private banks have been authorized to provide this facility to their customers. To identify whether a particular bank branch is offering this service, the same can be verified in the website www.tin-nsdl.com. Alternatively, the manager of the respective bank may be approached for clarification.

Ø  Basic Requirements:

o   You must have a bank account with net banking facility.

o   Your bank is among the banks that provide the e-tax payment facility.

o   In case, you have a bank account without net banking facility, after checking up the availability of the service, request your bank manager to provide the same for your account. A distinct LOGIN ID and a secret PASSWORD would be provided to you for using the above service.

Ø  E-tax payment – The procedure in brief:

o   Log on to the NSDL-TIN website. i.e. www.tin-nsdl.com

o   Click on the icon ‘Pay tax online’,

o   Select the appropriate challan form 280, 281, 282, 283 for making the tax payment. For making TDS payments, use challan form 281.

o   After choosing the required challan, you will be directed to the screen for entering the following data:

v  TAN for TDS payments and PAN for other types of payments,

v  Name and address of the tax payer,

v  Assessment Year,

v  Major Head Code,

v  Minor Head Code,

v  Type of payment.

v  After entering the required data, select your bank through which the tax will be paid. Select your bank from the list of banks providing this facility.

o   Click ‘Submit’. A message will appear as under;

“For the TAN/PAN submitted by you above, the name as per the Income Tax Department Database is ‘…………………………………’. If the name is right, then click on “Submit to the bank”.

o   TIN system will take you to the net banking site of your bank. You will have to log on to the net banking site of your bank, using your login ID and password/PIN provided by the bank.

o   The particulars entered by you at the TIN website will be displayed again. You will have to mention the amount of tax to be paid and your bank account number from which the tax amount has to be paid. After verifying the correctness of the details entered by you, confirm the payment.

o   Your bank will process the transaction online by debiting the bank account indicated by you and issue an acknowledgement indicating the Challan Identification Number (CIN). Please save/print the acknowledgement copy as may be required for your future use.

o   Your e-tax payment process is now completed. Apart from the CIN given to you, you my also verify your online bank statement to verify for tax payment.

o   In case, you wanted to verify the status of your challan in the ‘Challan Status Enquiry’ at NSDL-TIN website using CIN, the same can be done after a week after making the payment.

Ø  For any e-tax payments made, quoting of the ‘Challan Identification Number’ in the return formats would be considered as sufficient proof. Attaching copy of the acknowledgement counterfoil is not necessary.

Ø  Frequently Asked Questions regarding e-tax payments:

A.   How secure is the transmission of data to the website for e-tax payment?

All transaction through NSDL-TIN website is encrypted and is with Secure Socket Layer (SSL) authentication. With respect to the banks, it depends on the security measures provided by the banks for net banking.

B.   How does this system of payment of taxes through the internet benefit me as taxpayer?

(i)     No need to personally visit the bank and wait in the long queues before the cash counter for making tax payments.

(ii)   Payment can be made electronically from any place at your convenience i.e Office, Residence, outstations, etc. Therefore, due dates of remittances would not be a problem.

(iii) No need to issue cheque or carry cash to the bank for making tax payments.

(iv) Your TAN/PAN is verified every time from Income Tax Database. Therefore, possibility of wrong credit of taxes is totally avoided.

(v)   Chances of uploading wrong data by bank employees due to oversight will be totally reduced.

(vi) With the simple procedure prescribed and by virtue of the inherent advantages, e-tax payment is far simpler than manual tax payments.

Good Bye! Cheers!!