Process of TDS Registration

TDS Registration is performed on the TRACES portal stands for Tax Deducted at Source Reconciliation Analysis and Correction Enabling System. It is an official portal of the Income tax department that enables the connection of stakeholders in the administration and implementation of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS).

The person deducting the tax is compulsorily required to take registration under the CGST or SGST Act, 2017. The registration can be made by a deductor, deductee, and pay and accounts office (PAO). A tax is deducted when a specific payment is made like rent, commission, professional fees, salary, interest, etc.

Steps Involved in the Process of TDS Registration

The TRACES website provides the online facility for registration to the taxpayers or deductors or PAO who are required to register on the website.

The following are the steps for registration by TDS Deductor registration:

Step 1: Visit the TRACES portal and then click on ‘Register as a new applicant’. There will be three options i.e., Deductor, taxpayer, or PAO register on TRACES. Select the ‘Deductor’ option from a type of user.

Step 2: The details of a taxpayer like PAN Details, Date of birth or Incorporation date, and Name of the taxpayer.

Step 3: For any of the following details like deduction or collection for TDS Registration; fill in the details of challan deposited by the taxpayer, and details of 26QB statement.

Step 4: Click on ‘Create Account’ after entering the above details. A page of confirmation appears for validating the details. In case you want to edit then it can be changed and submitted.

Step 5: After confirming the details, the account is created with an activation link and a code is sent to the email address and phone number.

Step 6: After the account is activated, the user can TDS login into TRACES.

The following are the steps for registration by Taxpayer:

Step 1: Visit the TRACES portal for TDS Registration.

Step 2: Traces login to the page and click on ‘Register as new applicant’.

Step 3: Select the ‘Taxpayer’ option and ‘Individual’ from a type of user.

Step 4: Provide the basic details like PAN, First name, middle name and surname, Date of birth and residential status.

Step 5: Click on the ‘Continue’ option.

Step 6: Enter the mandatory information like password, contact details, and current address and then click on the ‘Submit’ option.

Step 7: Once registration is completed, the residents will get a six-digit 2 OTPs on the phone number and email address. In the case of Non-residents,             the OTP is sent to the email ID given during registration.

Step 8: Enter the OTP and the registration process is completed.

Documents Required for TDS Registration by Individual or Sole Proprietorship

The required documents for registration under GST, TDS and TCS are as follows:

• PAN card of the individual.
• Aadhar card of the individual.
• Passport-size photograph of the sole proprietor in JPEG form with a maximum 100 KB size.
• For registered office proof:
• In the case of self-owned then a copy of the electricity bill, telephone bill, water bill, and property tax receipt.
• In the case of the rented property then rent agreement and no objection certificate from the owner of the property.
• Bank account information like a copy of the cancelled cheque, the front page of the passbook or a bank statement is required for registration.
• DSC is required for individuals for TDS Registration.

Process of TAN Registration Online

The steps for online TAN registration are given below:

Step 1: Visit the Income tax Efiling portal and then click on the ‘Register’ option.

Step 2: First, select the ‘Others’ option and select ‘Tax Deductor and Collector Category’ in the category given.

Step 3: Enter TAN and click on the ‘Validate’ button.

Step 4: There are three situations; a TAN registered on the TRACES portal with a request for registration on the E-Filing portal is made and click on ‘Continue’ and ensure the correct details are filled.

In the second situation; a TAN is unregistered and no request is made on the E-Filing portal.

Step 5: Enter the same details filled in at the time of TDS Registration such as ‘PAN’, ‘Name’ and ‘date of birth’ and then click on ‘Continue’.

Step 6: Fill in all the details like postal address, phone number and email address. Click on ‘Continue’.

Step 7: OTPs are sent to mobile and email addresses and then click on continue.

Step 8: Review the details entered on the screen and then click on ‘confirm’.

Step 9: A password has to be set with a message and click on the ‘Register’ button.

Step 10: A message showing successful registration is displayed on the website. The transaction ID is generated which is used in the future. The approval of the competent authority completes the process.

Process of Making TDS Online Payment

The TDS Registration amount is deducted at the time of paying rent, commission, salary, etc. The process of TDS payment is described in the following steps:

Step 1: Visit the E-Payment Income Tax Department official portal.

Step 2: Select the Challan No. ITNS 281 after TDS filing login which is used for depositing TDS or TCS by a company or non-company deductee.

Step 3: Select the type of deductee from the options given on the screen.

Step 4: In case a deductee is a person and not a company then select the ‘Non-company deductee’ option or company deductee’.

Step 5: Fill in the TAN details for online verification with the validity of the TAN as done at the time of TDS Registration.

Step 6: In case TAN details are unavailable then you cannot proceed further.

Step 7: Select the Assessment year.

Step 8: Enter the details of the challan such as the head of accounting where the payment is made. The details of name, address, email and contact details of the TAN holder.

Step 9: Select the payment type from the option given on the screen.

Step 10: For normal payment select TDS/TCS payable by taxpayer or against the demand raised then select TDS/TCS Regular Assessment raised by the Income tax department.

Step 11: Select the nature of payment whether it is salary, rent, fees, etc.

Step 12: For TDS Registration; select the bank with which TDS is deposited.

Step 13: After the submission of the details, the screen will show the confirmation message.

Step 14: Check the details and confirm that the details are true and best of your knowledge.

Step 15: After confirmation, net banking will appear.

Step 16: Income tax login to the net-banking page with a user ID and password by making the payment.

Step 17: After the payment of TDS online a challan will be displayed.

Step 18: The challan has CIN i.e., Challan Identification number showing the details of payment with bank name and branch code and date of challan.

Step 19: For TDS Registration; the branch gives the details of deposited taxes to the ‘Tax Information Network’ with the online tax accounting system.

Step 20: Verification of the status of the challan by ‘Challan Status Inquiry’ on the NSDL website.

Conclusion

Tax deducted at source is a form of collecting tax with a percentage of the payable amount by the receiver on goods or services. In the new notification, An authority or board set up by a parliament or state legislature with 51% equity is controlled by the government. A society by central or state government or a local authority and public sector undertakings can deduct TDS. At Online XBRL you will get advanced business consultations with efficient solutions for registering under TDS.