TDS Payment Online — Challan 281 Step-by-Step Guide

Updated: 3 June 2026 | incometax.gov.in | Challan 281 | TRACES / OLTAS

Pay TDS online at incometax.gov.in → e-Pay Tax → TDS/TCS using Challan 281. Enter your TAN, select the correct Assessment Year and Nature of Payment (e.g., 192 for salaries, 194J for professional fees). Pay via net banking or NEFT. Download the OLTAS receipt immediately — it is your TDS payment proof and appears in Form 26AS / TRACES within 3–4 working days.

1.5% / mo

Interest under Section 201(1A) for late TDS deposit.
Interest runs from the date TDS was deducted to the date it is actually deposited. April–February deductions: deposit by 7th of next month. March deduction: deposit by 30 April.

How to Pay TDS Online — Step by Step

Visit incometax.gov.in or TIN-NSDL
Go to the Income Tax e-filing portal (incometax.gov.in) → click "e-Pay Tax" in the quick links. Alternatively, use TIN-NSDL (tin-nsdl.com) → OLTAS → e-Payment of Taxes → Challan 281.
Select Challan 281
Choose "TDS / TCS" (Challan 281). This is used for all TDS and TCS payments — NOT Challan 280 which is for income tax on your own income.
Select Tax Applicable
Choose: (0020) Company Deductees — if deducting from a company (e.g., contractor payments to Pvt Ltd). (0021) Non-Company Deductees — if deducting from individuals, HUFs, partnership firms.
Enter TAN and Assessment Year
Enter your 10-digit TAN (Tax Deduction Account Number). Select correct Assessment Year (for TDS deducted in FY 2025-26: select AY 2026-27). Select the correct Nature of Payment code (e.g., 192, 194J).
Enter TDS Amount
Enter the TDS amount (basic tax), surcharge if applicable, and education cess. The system may auto-calculate surcharge and cess. Verify total before proceeding.
Pay via Net Banking
Select your bank from the authorized list → complete payment via net banking. UPI and debit card are available for amounts up to ₹1 lakh. NEFT/RTGS available for large payments.
Download OLTAS Receipt
After payment, download the challan counterfoil showing BSR code, challan serial number, date, and amount. This is your TDS payment proof required for TDS return filing on TRACES.

TDS Due Dates — Monthly Deposit Schedule

TDS deducted in any month (except March) must be deposited by the 7th of the following month. March TDS has extended deadline of 30 April.

Deduction Month	Deposit Due Date	Special Note
April	7 May	—
May	7 June	—
June	7 July	—
July	7 August	—
August	7 September	—
September	7 October	—
October	7 November	—
November	7 December	—
December	7 January	—
January	7 February	—
February	7 March	—
March	30 April	Extended deadline for March deductions
Government deductor (salary)	Same day	Section 192 — Govt. offices deposit on deduction day

Challan 281 — Nature of Payment Codes

Section	Nature of Payment	Code	TDS Rate (Default)
192	Salary (payroll TDS)	192	As per slab rate
194A	Interest other than securities	94A	10%
194C	Contractor / sub-contractor payments	94C	1% (Individual) / 2% (Company)
194H	Commission or brokerage	94H	5%
194I	Rent (plant, machinery, land & building)	94I	2% / 10%
194J	Professional / technical services fees	94J	10% (2% for technical)
194Q	TDS on purchase of goods	94Q	0.1%
195	Payments to non-residents / NRI	95	30% / DTAA rate

Challan 281 Key Fields Explained

TAN: 10-character Tax Deduction Account Number — mandatory; payment fails without valid TAN.
Assessment Year: Always one year after the financial year of deduction. TDS deducted in FY 2025-26 → AY 2026-27.
Surcharge: Applicable on TDS where the payee's income exceeds ₹50 lakh (individuals) or ₹1 crore (companies).
Education Cess: 4% on (TDS + surcharge).
Nature of Payment Code: 3-digit code matching the TDS section under which deduction was made.

After Payment — OLTAS & Form 26AS

The OLTAS (Online Tax Accounting System) receipt contains the BSR code (7 digits) and challan serial number — both required when filing TDS returns (24Q/26Q) on TRACES. The payment credit appears in the deductee's Form 26AS within 3–4 working days of deposit. Government deductors use a BIN (Book Identification Number) instead of challan details.

Frequently Asked Questions

What if TDS is deposited to the wrong TAN?

If TDS is deposited under an incorrect TAN, the deductee's Form 26AS will not reflect the credit, causing issues when they file ITR. Steps to correct: Contact the bank (within 7 days for OLTAS correction). If the bank window is closed, submit a Challan Correction request to your jurisdictional TDS Assessing Officer (AO) with a written application, original challan, and TAN/PAN proof. On TRACES, the deductor can also request a challan correction for minor errors. Correcting quickly is important — interest under Section 201(1A) continues to accrue until proper credit appears.

How do I correct a Challan 281 error after payment?

Challan corrections on TRACES (tracessoftware.com): Login to TRACES → Statements/Payments → Challan Correction → Select statement period. You can correct: TAN, nature of payment, AY, amount (minor amounts only). Bank-level correction: Within 7 days of payment, approach the bank directly with original challan receipt. AO-level correction: For major errors or after 7 days, submit Form 26A / written request to TDS AO. Common correctable fields: challan serial number, BSR code, AY, TAN, nature of payment code.

Can excess TDS be refunded to the deductee?

Excess TDS can be credited to the deductee via two routes: (1) For deductee — file ITR and claim refund under the self-assessment. The excess TDS shown in Form 26AS will automatically reduce tax payable, and if credit exceeds tax liability, a refund is issued to the deductee's bank account. (2) For deductor — if TDS was deducted in excess and not yet deposited, the deductor can adjust in subsequent months. After filing TDS returns, a refund to the deductor's bank account can be claimed via TRACES refund request for excess payment.

Can TDS be paid offline using Challan 281?

Yes. Download Challan 281 from the TIN-NSDL website (tin-nsdl.com). Fill in: TAN, AY, Nature of Payment, amount (including surcharge and cess). Submit the filled challan with cash or cheque at any authorized bank branch (e.g., SBI, HDFC, ICICI, PNB — all RBI-authorized banks). The bank stamps the challan and gives you the counterfoil (OLTAS receipt). Note: Offline payments take 3-7 working days to appear in Form 26AS vs 2-3 days for online payments.

What is BIN (Book Identification Number) for government deductors?

BIN stands for Book Identification Number — used exclusively by government deductors (Central/State Government offices) that deposit TDS via book entry (not cash/cheque). Instead of BSR code + challan serial number, government deductors quote the BIN in their TDS returns. BIN is generated by the Pay & Accounts Officer (PAO). PAOs file Form 24G with NSDL to generate BINs. Deductees receiving salary from government departments see BIN details in their Form 16 / Form 26AS instead of a challan number.

TAN Registration TDS Return Filing Form 26AS TDS on Salary Slab Section 195 TDS on Non-Residents Challan 280 — Income Tax TRACES Login

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