Latest Online process to pay TDS and file TDS returns from April 2020

The concept of TDS was introduced with an aim to collect tax from the source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor. The person deducting the TDS is known as Payer or Deductor and the person from whose payment TDS is deducted is known as Payee or Deductee. The process of payment of TDS and filing of TDS return is covered further:

Payment of TDS

Under Tax Deducted at Source system the Tax is deducted at the time of payment to the party. The person making the payment is responsible for deducting the TDS and depositing the TDS in government treasury on or before the due date specified. The below is the due date for payment of TDS to the government account:

Due dates for TDS payment for FY 2020-21 AY 2021-22

Month	Due date for Government deductors	Due date for other deductors (Company, Individual, HUF etc.)
April	7th May 2020	7th May 2020
May	7th June 2020	7th June 2020
June	7th July 2020	7th July 2020
July	7th August 2020	7th August 2020
August	7th September 2020	7th September 2020
September	7th October 2020	7th October 2020
October	7th November 2020	7th November 2020
November	7th December 2020	7th December 2020
December	7th January 2021	7th January 2021
January	7th February 2021	7th February 2021
February	7th March 2021	7th March 2021
March	7th April 2021	30th April 2021

Interest on late payment and Late deduction of TDS:

As per section 201(1A) Interest at the rate of 1% per month or part of the month on amount of TDS from the date of tax was deductible till the date of tax actually deducted shall be charged for late deduction.

Also, for late payment Interest at the rate of 1.5 % per month or part of the month on amount of TDS from the date of tax was deducted till the date such tax is paid shall be charged.

Interest on late payment of TDS: Changes made as per Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 24^th March 2020:

For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, reduced interest rate at 9% instead of 12 %/18 % per annum (i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. No late fee/penalty shall be charged for delay relating to this period.

Procedure for Payment of TDS online:

Step 1: Go to site https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

Select challan no CHALLAN NO./ITNS 281

Step 2: Filing of Challan no. 281

• Select the tax applicable i.e. (0020) Company Deductees for Company deductees and (0021) Non- Company Deductees for others like Individual, HUF, Firm etc.

• Select the Type of Payment:
• (200) TDS/TCS Payable by Taxpayer: In case of regular payment of TDS then we are required to select this option
• (400) TDS/TCS Regular Assessment: In case of payment is made in response to notice of department like demand notice, then we to select this option

• Select the Nature of payment i.e. Whether rent, salary, contract payment etc.

• Mode of Payment: Select the Bank through which the TDS payment is to be made also select whether payment is to be made through net Banking or Debit Card

• Enter your TAN number and Select Assessment year as applicable

• Enter your address and mobile no

Now, click on “proceed” it will display the name of the entity and Financial Year

Step 3: Final Submission:

1. Now Select “I agree” Check box and Click on “Submit to Bank” it will take you to your bank page and you can enter your login ID and password and pay tax 
2. Once paid you will be redirected to the BSR Code and challan details
3. Download/ Save the Challan Copy

Process Online to File of TDS return:

Person deducting TDS is compulsorily required to file TDS return. It is mandatory for the deductor to file the e-TDS return on or before the due date specified by the department. Once the return have been submitted the details will reflect in the deductees 26AS i.e. TDS Statement. The below are the due dates for TDS return:

Due dates for TDS quarterly Returns for FY 2020-21 AY 2021-22:

Quarter	Period	Due Date
Q1	1 April 2020 – 30 June 2020	31st July 2020
Q2	1 July 2020 – 30 September 2020	31st October 2020
Q3	1 October 2020 – 31 December 2020	31st January 2020
Q4	1 January 2020 – 31 March 2021	31st May 2021

Fees for default in filing of TDS/ TCS return:

Fees is payable at Rs. 200 per day for each day during which the failure continues. The amount of fees cannot exceed than the amount of TDS

Process to file TDS return Online:

The following are the 3 steps of TDS return:

1. Downloading TDS return utility
2. Downloading Challan file
3. Preparing and filing the TDS return

Step 1: Download TDS return preparation utility:

Go to : https://www.tin-nsdl.com/services/etds-etcs/etds-rpu.html and Click on “Download RPU Version 3.1”. The utility will get downloaded in a zip file.

Go to the download and Unzip the “RPU_3.1” zip file

Step 2: Download Challan file

Under this stage we will be downloading the challan file. Challan file consist of the details of TDS challan to be considered for the TDS return. The following is the process to download the challan file:

Go to https://tin.tin.nsdl.com/oltas/index.html

Click on “TAN Based view” button

Enter the TAN no and Enter the Range of date, during which the TDS payment has been made. For instance, 3 TDS payment has been made from 1^st February 2020 to 31^st March 2020 then Enter the above date as range of Challan Tender Date. Enter the Captcha and click on “View Challan file” button

The paid challan will be displayed in the next page. Select the Challan details and click on “Download Challan file”. The challan file gets downloaded

Step 3: Preparing and filing the TDS return

Open the RPU folder downloaded in step 1 and Click on “TDS_RPU_3.1” file from the folder. The utility will get started.

After form opens select the Form no required as below:

1. 24Q: Statement for Tax Deducted at Source from salaries
2. 26Q: Statement for Tax deducted at source on all payments except salaries
3. 27Q: Statement for deduction of tax payable to Non-Resident of India
4. 27EQ: Statement of the collection of tax at source

We be will filing Form 26Q for Tax deducted at source on all payments except salaries in this article as below:

1. Select Form 26Q from the drop down and click on “Click to Continue” button. The form will have three parts as below:
   • Main form which we will provide the details of the Deductor and the employer
   • Challan Details
   • Deductee details
2. Filling of Main form

Step 4: n this part we have to fill the following details:

1. TAN of the deductor
2. Financial year
3. Quarter ended for which return is to be filed
4. PAN of the entity
5. Type of the deductor i.e. Individual, Firm, Company etc.
6. Furnish Particulars of deductor like:
   • Name of the deductor
   • Branch of deductor if any. If no branch then enter NA
   • Postal address of the Deductor as per TAN
   • Email Id of the deductor
   • Select whether the address has been changed since last return.
7. Furnish details of person responsible for deduction of Tax:
   • Name of person responsible for deduction of Tax
   • Designation of the person
   • PAN of the person
   • Postal address of the person
   • Email ID and Mobile no of the person
8. Select whether address has been changed since last return
9. Select whether return for earlier return has been filed. In case return has been filed then enter the acknowledgment no of the return for earlier return

Now click on “Create file” button. You will be able to enter the challan details.

Unless the above details are filled the form will not proceed further

After you come to challan details tab click on “Add rows” button. Now Enter the no of challan to be added.

Step 5: Now enter the challan details like

1. TDS, surcharge, cess, Interest, fee and Penalty amount
2. Enter the BSR code of the Challan
3. Enter the date of deposit of the challan
4. Enter the Challan Serial no
5. Select the Minor head of Challan from the drop down i.e.
   • (200) TDS/TCS Payable by Taxpayer: In case of regular payment of TDS then we are required to select this option
   • (400) TDS/TCS Regular Assessment: In case of payment is made in response to notice of department like demand notice, then we to select this option

After entering the above details go to Annexure I i.e. deductee details

• Filling of deductee and Payment details

Click on “Insert a Row” button and Insert the no of deductee to be added against a particular challan. For instance, if you want to add 3 entries against challan 1 than enter 3 under no of deductee rows to be added against Challan number 1.

Step 6: Now enter the details in the added rows as follows:

• Section under which the payment is made i.e. nature of payment
  1. Name and PAN of the deductee
  2. Date of Payment to the deductee
  3. Amount of Payment made
  4. TDS deducted
  5. Date of deduction
  6. Rate at which tax has been deducted

After above details are entered click on “Create file” button

Step 7: It will ask two folder path as below:

1. In 1^st option we have to select the folder path where the challan file downloaded in step 2 is stored
2. In 2^nd option we have to select the folder path where we have to save the TDS return xml

After the above path has been selected, click on “validate” button. The folder where the TDS return xml is stored will open automatically.

Now, save the folder in USB drive and take print of Form 27A generated and submit to TDS facilitation center near you.