> ## Documentation Index
> Fetch the complete documentation index at: https://razorpay-60c89f9a-mintlify-audit-missing-sections-1778528421.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Tax Payment Life Cycle

> Following are the 2 life cycles in tax payments:

* [Tax Payment Life Cycle](#tax-payment-life-cycle)
* [Payout Life Cycle](/x/payouts/states-life-cycle)
  Following is the tax payment life cycle.

## Unpaid

The TDS payment is uploaded to our system. A payout may have been created, but not successfully made against the TDS payment.

Possible payout states:

* Payout not yet created.
* `rejected`
* `cancelled`
* `failed`
* `reversed`

## Processing

The TDS payment is being processed. A payout is created and is being processed.

Possible payout states:

* `pending`
* `queued`
* `processing`

From the `processing` states, the payout can go back to the `unpaid` state if:

* If you cancel or reject the payout.
* If the payout fails or is reversed.

## Paid

The TDS payment was successful. Possible payout state: `processed`.

After the TDS is successfully paid, you can download the challan from the Dashboard and file the TDS as per your convenience.

## Cancelled

You have manually cancelled the TDS payment from the Dashboard.

* You can only cancel a TDS payment in the `unpaid` state.
* You cannot cancel a TDS payment after a payout is initiated for it.

### Related Information

* [Tax Payments](/x/tax-payments)
* [Tax Payments - Standard User Roles](/x/manage-teams#tax-payments)
* [Payout Life Cycle](/x/payouts/states-life-cycle)