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Income Tax

How to Pay TDS Online With Challan 281 or 281N

Pay TDS on the e-Filing portal via e-Pay Tax > Pay TDS/TCS. Use ITNS 281N for tax deducted from April 2026; deposit by the 7th of next month.

RM

Written by Rohan Mehta

Published 23 September 2026·6 min read

On this page9 sections
Credsir Income Tax guide cover with a receipt indian rupee icon

To pay TDS online, log in to the Income Tax e-Filing portal with your TAN, open e-File > e-Pay Tax, pick the Act, and pay through the Pay TDS/TCS tile. For tax deducted from 1 April 2026, use Challan ITNS 281N under the Income-tax Act, 2025; Challan 281 now covers only earlier periods. Deposit by the 7th of the following month.

Key facts

Item Detail
Challan for tax year 2026-27 onwards ITNS 281N (Income-tax Act, 2025)
Challan for FY 2025-26 and earlier ITNS 281 (Income-tax Act, 1961)
Due date 7th of the month after deduction
Tax deducted in March 30 April (non-government deductors)
Property purchase TDS (Form 141) Within 30 days from the end of the month of deduction
Challan (CRN) validity 15 days from generation
Section codes per 281N challan Up to 20 under Minor Head 200
Interest for late deposit 1.5% a month or part of a month

Who pays TDS with Challan 281 or 281N

Any deductor with a TAN uses these challans: employers deducting tax on salary, and businesses deducting tax on rent, contract or professional payments. The challan you pick depends on when the tax was deducted:

  • Deducted up to 31 March 2026: choose Income Tax Act 1961 on the portal. That generates Challan 281.
  • Deducted from 1 April 2026: choose Income Tax Act 2025. That generates ITNS 281N.

Individuals who deduct tax once on a property purchase do not need a TAN. Section 397(1)(c) of the Income-tax Act, 2025 exempts them. They pay through Form 141, covered below.

Due date for depositing TDS

The e-Filing portal gives the standard deadline as the 7th of the month after the month of deduction. Tax deducted in March gets until 30 April for non-government deductors. Tax deducted in August 2026 is therefore due by 7 September 2026, and September’s deductions by 7 October 2026.

Miss the date and Section 398(3) of the Income-tax Act, 2025 charges simple interest:

  • 1% a month or part of a month from the date tax was deductible to the date you actually deduct it.
  • 1.5% a month or part of a month from the date of deduction to the date you pay it.

You must pay this interest before filing the quarterly TDS statement. Filing that statement late adds a fee of ₹200 a day under Section 427, capped at the tax deductible.

Steps on e-Pay Tax

  1. Log in to the e-Filing portal with your TAN user ID and password.
  2. On the dashboard, go to e-File > e-Pay Tax.
  3. On the Act selection screen, choose Income Tax Act 1961 or Income Tax Act 2025, then click Continue.
  4. Click New Payment.
  5. Click Proceed on the Pay TDS/TCS tile.
  6. Select the deductee type (company or non-company) and residential status, then click Continue.
  7. On Add Nature of Payment Details, enter the tax, surcharge and cess for each section code.
  8. Click Continue and check the Verify Tax Break Up Details screen.
  9. Pick a payment mode and pay through your bank or the payment gateway.
  10. Download the Challan Receipt once the payment succeeds.

You can also pay without logging in. Use the e-Pay Tax quick link on the portal home page, then enter your TAN and the OTP sent to your mobile.

Payment modes are net banking and debit cards of authorised banks, pay at bank counter, RTGS/NEFT, and a payment gateway that accepts net banking, debit card, credit card and UPI.

Selecting the correct section and minor head

For tax deducted from 1 April 2026, quote the new section. Salary TDS is under Section 392 of the Income-tax Act, 2025. Most other TDS to residents falls under Section 393, and TCS under Section 394. The portal warns that quoting old numbers such as 194C, 194J or 194H for these transactions can cause validation errors.

The heads on ITNS 281N are:

Head Code Use it for
Major Head 0020 Company deductees (Corporation Tax)
Major Head 0021 Non-company deductees (Income Tax other than companies)
Minor Head 200 Regular TDS/TCS payable by the deductor
Minor Head 400 TDS/TCS demand from regular assessment
Minor Head 500 Other receipts
Minor Head 800 Payment against a PAN-based TDS demand

The ITNS 281N FAQ asks for separate challans for resident and non-resident deductees, and for company and non-company deductees. One challan under Minor Head 200 can carry up to 20 section codes. According to ClearTax, a challan with a wrong section, minor head or year can be corrected through TRACES. Our TDS rates chart lists what each payment attracts.

Paying TDS on property or rent (Form 141)

From 1 April 2026, Form 141 under the Income-tax Rules, 2026 replaced the old property challan-cum-statement, Form 26QB. Patron Accounting’s guide adds that its schedules also replace Forms 26QC, 26QD and 26QE, and that it works on PAN, without a TAN.

  • Property: a buyer deducts 1% of the price or the stamp duty value, whichever is higher, when the property is worth ₹50 lakh or more (Section 393(1), Table serial 3(i)).
  • Rent: an individual or HUF deducts 2% when rent is above ₹50,000 a month, if their business turnover last year was ₹1 crore or less (₹50 lakh for a profession). Salaried tenants fall in this group. The deduction happens in the last month of the tax year or of the tenancy (Table serial 2(i)).

TaxGuru notes that Form 141 must be filed, with the tax, within 30 days from the end of the month of deduction. The TDS certificate is now Form 132, due within 15 days of that date. Our pages on TDS on property sale and TDS on rent cover these in more depth.

Checking challan status

The e-Pay Tax page has three tabs: Saved Drafts, Generated Challans and Payment History. A generated challan moves through Payment Not Initiated, Initiated and Awaiting Bank Clearance before it shows Paid.

The Challan Receipt shows the Challan Identification Number (CIN), BSR code and date of payment. You need these details for your TDS statement. Receipts stay downloadable from Payment History with no time limit.

A CRN expires 15 days after you generate it. If you use pay at bank counter and hand over the cheque or draft before expiry, validity extends by 90 days. For a mismatch you cannot fix yourself, a chartered accountant can help with the correction.

Frequently asked questions

What is the last date to deposit TDS?

The 7th of the month after deduction. For tax deducted in March, non-government deductors have until 30 April.

Is Challan 281 still used after April 2026?

Only for tax deducted up to 31 March 2026. For tax year 2026-27 onwards, the portal generates ITNS 281N.

Can I pay TDS online without logging in?

Yes. Use the e-Pay Tax quick link on the e-Filing portal and verify with your TAN and a mobile OTP.

Can I pay TDS by UPI or credit card?

Yes, through the payment gateway option on e-Pay Tax, which supports UPI, credit card, debit card and net banking.

How long is a TDS challan valid?

The CRN is valid for 15 days from the date you generate it.

What is the interest on late TDS payment?

1.5% a month or part of a month from the date of deduction to the date of payment, under Section 398(3) of the Income-tax Act, 2025.

Do I need a TAN to pay TDS on a flat purchase?

No. Buyers deducting tax on immovable property are exempt from getting a TAN and pay through Form 141 using their PAN.

Sources

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