TDS Payment

TDS Remittance Process under Income Tax Act 2025

Tax Deducted at Source (TDS), once deducted by the employer (also called Deductor), must be deposited to the Central Government within the prescribed timelines. The most widely used method of payment is through the Income Tax Department’s official online portal, as governed by the Income Tax Act 2025.

This section explains the entire process with examples and simulations to help learners understand and apply the procedure hands-on.

Step-by-Step Process to Pay TDS Online

Login & Navigate to the Payment Page

Access the official Income Tax portal and log in using your TAN and password to reach the e-Pay Tax section.

Select Tax Year & TDS Section

Choose the correct Tax Year (e.g., 2026-27) and specify the relevant TDS details.

Fill TDS Payment Details & Complete Payment

Provide all necessary payment information, including TDS, interest, and late fees, then finalize the transaction through your chosen banking method.

1. Login & Navigate to the Payment Page

Visit the official Income Tax portal: https://www.incometax.gov.in/ launch🔗
Login to the portal using your TAN and Password.
On the Dashboard, click e-File > ‘e-Pay Tax’. You will be navigated to the e-Pay Tax page.

2. Select Tax Year and Enter TDS Details

On the e-Pay Tax page, click the ‘New Payment’ option to initiate the online tax payment.
Select the relevant Tax Year. For income earned in the Tax Year 2026-27 (under Income Tax Act 2025), select 2026-27.
Click on ‘Proceed’ in the ‘Pay TDS/TCS’ option.
Select the Tax Applicable Major Head:

Major Head	Description	Applicable Deductee(s)
0021	Income Tax (Other than Companies)	Individual, Firm, LLP, AOP, BOI, etc.
0020	Corporation Tax	Private Limited Company and Public Limited Company

Please select the residential status of the deductee(s) from: Resident Deductee(s) Non-Resident Deductee(s)
Click on Continue.
Select Payment details from “Details of Payments” under the heading “TDS/TCS Section-Wise Payment Details”.
You can see the Section and TDS Code once relevant details are selected.
Enter the applicable TDS, Surcharge & Education Cess and click on ‘Add’.
Enter Interest, Late Fee, Penalty & Other amount in Details of Other payments and click Continue.

What is TDS Code under Income-tax Act, 2025?

A TDS Code / Nature of Payment (NOP) Code is the code used while making the TDS payment/challan to identify the nature of payment on which TDS has been deducted. For payments/credits on or after 1 April 2026, the relevant provision of the Income-tax Act, 2025 and the corresponding TDS payment code should be used. The Income Tax Department specifically states that quoting old sections such as 192, 194C, 194J or 194H for post 1 April 2026 transactions can result in system validation errors. Example 1: TDS for payment of salary shall be deducted under section 392 of Income Tax Act, 2025. However, while making the TDS remittance to Govt., the following payment category needs to be made with specific TDS code: Code 1001: Salary – Government employees other than Union Govt. Code 1002: Salary – Employees other than Government employees Example 2: TDS for Payment of Rent is made under Section 194I earlier, TDS Code for the same is 94I.

Experiment 2:

Assume TDS computation has been done against salary payment for the last month. In the Simulation interface below, please select the relevant Tax year, Section & Code to proceed further.

3. Complete the Payment

Select ‘Type of Payment’ (Net Banking / Debit Card / RTGS / Pay at Bank) and choose the Bank Name to use. Click ‘Continue’ to preview and pay.
Check the details in the preview and click on Pay and Submit to the Bank.
The taxpayer will log in to the net-banking site with the user ID/password provided by the bank and enter payment details.
On successful payment, a challan counterfoil will be displayed containing CIN, payment details, and the bank name. This counterfoil serves as proof of payment.
Click on the ‘Download’ button to download the challan for future reference. Alternatively, you can download the challan from the Payment History section of the ITD Portal.

Click on Make Another Payment to initiate a new transaction.

Question: TDS codes used while making payments are used for-

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

Experiment 3:

Assume the total TDS payable under Salary for the month is ₹76,700 and the Interest payable is ₹3,560. Please make the payment on 5th May using the simulation interface provided below. Select the appropriate Tax Applicable (Major Head): For Other than Company Deductee, choose Income Tax (Other than Companies) – 0021 For Company Deductee, choose Corporation Tax – 0020 Use Dummy Bank as the payment bank under the Net Banking option.