TDS Payment Online —
Challan 281 Step by Step
How to pay TDS online with Challan 281 on the income-tax e-Pay Tax portal — TAN, tax-applicable code, nature-of-payment codes, monthly due dates, the OLTAS receipt and how it reaches Form 26AS.
Pay TDS online at incometax.gov.in → e-Pay Tax using Challan 281 (ITNS 281). Enter your TAN, pick the tax-applicable code (0020 for company deductees, 0021 for non-company), the correct Assessment Year and Nature of Payment (e.g. 192 salary, 194J professional). Pay by net banking, UPI, debit card or NEFT/RTGS, then download the OLTAS receipt — it carries the BSR code and challan serial number and shows in Form 26AS within a few working days.
How to Pay TDS Online with Challan 281
TDS is now paid through the e-Pay Tax service on the income-tax portal (the old TIN-NSDL/OLTAS e-payment route has migrated here). You need a valid TAN — payment cannot be made without it.
- 1. Open e-Pay Tax — go to incometax.gov.in and click e-Pay Tax in Quick Links; authenticate with TAN + OTP.
- 2. Select Challan 281 (TDS/TCS) — this is for TDS/TCS only, not Challan 280 (self income-tax).
- 3. Choose tax applicable — (0020) Company deductees if you deducted from a company, else (0021) Non-company deductees (individuals, HUFs, firms).
- 4. Enter TAN & Assessment Year — TDS deducted in FY 2025-26 is paid against AY 2026-27.
- 5. Pick the Nature of Payment — the 3-digit code for the section under which you deducted (192, 94C, 94J, etc.).
- 6. Enter amounts — TDS/income-tax, plus surcharge/cess where they apply; verify the total.
- 7. Pay & download the OLTAS receipt — keep the challan showing BSR code, serial number, date and amount; you will quote these in your TDS return.
TDS challans are keyed to the deductor's TAN, never the PAN. Depositing against a wrong or non-existent TAN means the credit will not reach the deductee's Form 26AS, and interest under Section 201(1A) keeps running until it is corrected.
TDS Payment Due Dates — Monthly Schedule
TDS deducted in any month (except March) must be deposited by the 7th of the following month. TDS deducted in March gets an extended deadline of 30 April.
| Month of deduction | Deposit due date | Note |
|---|---|---|
| April – February | 7th of next month | e.g. April deducted → 7 May |
| March | 30 April | Extended deadline for March deductions |
| 194-IA / 194-IB / 194M (challan-cum-statement) | 30 days | By 30th of the next month, via Form 26QB/26QC/26QD |
| Government deductor (book entry) | Same / next day | Deposited by book adjustment; BIN used, not a challan |
Miss the date and interest under Section 201(1A) applies from the date of deduction to the date of deposit.
Interest is 1% per month for failure to deduct and 1.5% per month (part of a month counts as a full month) for TDS deducted but not deposited on time, under Section 201(1A). Separately, late filing of the TDS return attracts a fee of ₹200 per day under Section 234E, capped at the TDS amount.
Late-deposit interest — ₹50,000 TDS, 2 months late
Late-filing fee — return 10 days late
Deducted TDS but missed a challan deadline? Get your interest and return sorted.
Talk to a TDS Expert →Challan 281 — Nature of Payment Codes
Choose the code that matches the section under which you deducted. Picking the wrong code mismatches your challan with the TDS return. For the full section-wise list of current-year rates and limits, see the TDS rate chart 2025-26.
| Section | Nature of payment | Code | Typical rate (FY 2025-26) |
|---|---|---|---|
| 192 | Salary (payroll TDS) | 192 | Slab rate |
| 194A | Interest other than on securities | 94A | 10% |
| 194C | Contractor / sub-contractor | 94C | 1% ind/HUF · 2% others |
| 194H | Commission or brokerage | 94H | 2% |
| 194I | Rent — land/building 10%, plant/machinery 2% | 94I | 10% / 2% |
| 194J | Professional 10% · technical 2% | 94J | 10% / 2% |
| 194Q | Purchase of goods above ₹50L | 94Q | 0.1% |
| 195 | Payments to non-residents | 95 | Per income + DTAA |
194H was reduced to 2% (from 5%) w.e.f. 1 Oct 2024. If the deductee has no PAN, deduct at 20% under Section 206AA. Section 206AB (higher rate for non-filers) was omitted w.e.f. 1 April 2025.
The tax-applicable code follows the deductee, not you: use 0020 when the payee is a company and 0021 for a non-company payee (individual, HUF, firm, LLP). Mixing company and non-company deductions in one challan is fine on e-Pay Tax, but the code on the challan should reflect the deduction being paid.
Not sure which section or code applies to a payment? Get it checked before you deposit.
Get TDS Help →OLTAS Receipt, Form 26AS & Your TDS Return
The OLTAS (Online Tax Accounting System) receipt is your proof of payment. It carries the BSR code (7 digits) and the challan serial number — both are required when you file the quarterly TDS return (24Q for salary, 26Q for non-salary) on TRACES. Once the return is processed, the credit appears in the deductee's Form 26AS and AIS.
Government deductors that pay by book entry quote a BIN (Book Identification Number) generated from Form 24G, instead of a challan number.
- Have a valid TAN before deducting
- Pick 0020 (company) / 0021 (non-company) correctly
- Deposit by the 7th of the next month (March by 30 April)
- Save the OLTAS receipt — BSR code + challan serial
- File 24Q / 26Q quarterly on TRACES
- Issue Form 16 (salary) / Form 16A (non-salary)
- Reconcile the challan in Form 26AS / AIS
For a minor error (AY, nature-of-payment code, minor/major head, amount), request an OLTAS challan correction with the bank within 7 days, or use Challan Correction on TRACES. For older or major errors, apply to your jurisdictional TDS Assessing Officer. Correct it quickly — until the credit lands in the deductee's 26AS, Section 201(1A) interest can keep accruing.
Challan paid — now file the return correctly and issue Form 16A on time.
Get TDS Return Filing →TDS Payment Online — Frequently Asked Questions
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