Income Tax Challan: How to Pay Income Tax Online Through the e-Pay Tax Facility
- Adv. Siddharth Sachan
- Jun 1
- 13 min read
Taxpayers are required to pay certain income tax liabilities, such as advance tax, self-assessment tax, demand tax, and other applicable taxes, using the e-Pay Tax facility available on the Income Tax e-Filing Portal. The portal enables taxpayers to make tax payments electronically through various authorised payment modes without visiting the Income Tax Department.
After the payment is successfully completed, taxpayers should verify that the transaction is reflected in Form 26AS and the Annual Information Statement (AIS) before filing their Income Tax Return (ITR). The challan receipt generated after payment should also be retained as proof of tax payment.
Key Highlights
Self-assessment tax should be paid under the Minor Head 300 – Self-Assessment Tax.
Tax payments can be made through Net Banking, Debit Card, Credit Card, UPI, RTGS, NEFT, or at an authorised bank branch, subject to the payment options available.
After successful payment, taxpayers should download and preserve the challan receipt, which contains important details such as the BSR Code, Challan Serial Number, CIN (Challan Identification Number), and the date of payment.
Before filing the Income Tax Return, taxpayers should ensure that the tax payment is correctly reflected in Form 26AS and the Annual Information Statement (AIS).
For Tax Year 2026–27 onwards, tax payments are required to be made in accordance with the Income Tax Act, 2025, using the prescribed challan forms, including ITNS 280N, ITNS 281N, and ITNS 288N, as applicable.
Table of Contents
How to Pay Income Tax Online Through the e-Pay Tax Facility
Taxpayers can pay income tax online through the e-Pay Tax facility available on the Income Tax e-Filing Portal. Before initiating the payment, taxpayers should ensure that they select the correct Assessment Year, Major Head, Minor Head, and payment category to avoid any mismatch in tax credit. The following steps explain the online tax payment process.
Step 1: Access the e-Pay Tax Facility
Visit the Income Tax e-Filing Portal.
On the homepage, navigate to the Quick Links section.
Click e-Pay Tax or search for e-Pay Tax using the search bar.
Step 2: Authenticate Your PAN
Enter your Permanent Account Number (PAN) and confirm it.
Enter the registered mobile number.
Verify the One-Time Password (OTP) received on the mobile number to proceed.
Step 3: Select the Applicable Assessment Year and Tax Payment Type
Select Income Tax as the payment category.
Choose the applicable Assessment Year from the drop-down list (for example, Assessment Year 2026–27, wherever applicable).
Select the appropriate Type of Payment, such as:
Self-Assessment Tax (Minor Head 300)
Advance Tax (Minor Head 100)
or any other applicable payment category.
Click Continue.
Step 4: Enter the Tax Payment Details
Enter the tax amount under the appropriate tax heads, including tax, surcharge, cess, interest, fee, or penalty, wherever applicable.
Verify that the amounts entered correspond with your tax computation.
Step 5: Choose the Payment Mode
Select the preferred payment mode.
Tax payment may be made through:
Net Banking
Debit Card
Credit Card
UPI
RTGS/NEFT
Payment at an authorised bank branch (where applicable)
Select the bank and click Continue.
Step 6: Verify the Challan Details
Review the challan generated by the portal.
Confirm that the PAN, Assessment Year, Major Head, Minor Head, and payment amount are correct.
If any information requires correction, select Edit before proceeding.
Click Pay Now to continue.
Step 7: Complete the Tax Payment
Accept the applicable terms and conditions.
Click Submit to Bank.
Complete the payment using the selected payment method.
Step 8: Download the Challan Receipt
Upon successful payment, the portal will generate a challan receipt.
Download and retain the challan for your records.
The challan contains important payment details, including:
BSR Code
Challan Serial Number
Challan Identification Number (CIN)
Date of Payment
These details may be required while filing the Income Tax Return (ITR) or for future verification.
Step 9: Verify the Tax Payment Before Filing the Return
Confirm that the tax payment is reflected in Form 26AS and the Annual Information Statement (AIS).
If using tax filing software, enter or upload the challan details, wherever required.
Ensure that the tax credit has been correctly reflected before filing and verifying the Income Tax Return.
Taxpayers Required to Make Electronic Income Tax Payments
The e-Pay Tax facility enables taxpayers to discharge advance tax, self-assessment tax, interest, fees and other income-tax liabilities electronically. While all taxpayers may use this facility, electronic tax payment is mandatory for specified categories under Rule 125 of the Income-tax Rules, 1962.
Persons Required to Pay Tax Electronically
The following taxpayers are required to make income-tax payments through an electronic mode:
Every company, including domestic and foreign companies.
Every person other than a company whose accounts are required to be audited under Section 44AB of the Income-tax Act, 1961.
Other taxpayers may also voluntarily use the e-Pay Tax facility for making their tax payments.
Payment of Self-Assessment Tax Before Filing the Income Tax Return
Self-assessment tax is the balance tax payable after adjusting advance tax, TDS, TCS, reliefs and other eligible tax credits against the final tax liability.
Where the tax computation shows an outstanding amount, the taxpayer should pay the balance tax before filing the Income Tax Return. The payment should be made under Minor Head 300 – Self-Assessment Tax.
The amount payable may include:
balance income tax;
surcharge and health and education cess;
applicable interest;
late-filing fees; and
any other amount payable under the Income-tax Act.
Interest Payable With Self-Assessment Tax
Where applicable, the taxpayer must also pay:
interest under Section 234A for delay in filing the return;
interest under Section 234B for default or shortfall in payment of advance tax; and
interest under Section 234C for deferment of advance-tax instalments.
Interest under Sections 234B and 234C does not become payable merely because tax is paid after 31 March. Its applicability depends on whether the taxpayer was liable to pay advance tax and whether the prescribed advance-tax instalments were paid within the applicable timelines.
Under the official section-mapping material for the Income-tax Act, 2025, Section 234B corresponds to Section 423, while Section 234C corresponds to Section 424. Therefore, the reference to Sections 424 and 425 should be corrected.
Liability to Pay Advance Tax
Advance tax is income tax paid during the relevant financial year in prescribed instalments instead of paying the entire liability at the time of filing the return.
Under Section 208 of the Income-tax Act, 1961, a taxpayer is generally required to pay advance tax where the estimated tax liability for the financial year, after reducing eligible TDS and TCS credits, is ₹10,000 or more.
Key Points
Salaried taxpayers may not have a separate advance-tax liability where sufficient tax is deducted by the employer through TDS.
Advance tax may still become payable where the taxpayer earns income not fully covered by TDS, such as:
interest income;
rental income;
capital gains;
business or professional income; or
income from other sources.
Taxpayers should estimate their total annual income and tax liability before each advance-tax due date.
Failure to pay the required advance tax, or delay in paying the prescribed instalments, may attract interest under Sections 234B and 234C.
Important: The ₹10,000 threshold refers to the estimated tax liability after considering eligible TDS and TCS credits, and not merely the taxpayer’s gross income.
Advance Tax Payment Due Dates and Instalment Requirements for FY 2026–27
Taxpayers liable to pay advance tax must discharge the liability in prescribed instalments during the financial year. For FY 2026–27, the applicable due dates and cumulative payment requirements are as follows:
Due Date | Cumulative Advance Tax Payable |
On or before 15 June 2026 | At least 15% of the total advance tax liability |
On or before 15 September 2026 | At least 45% of the total advance tax liability, after reducing earlier payments |
On or before 15 December 2026 | At least 75% of the total advance tax liability, after reducing earlier payments |
On or before 15 March 2027 | 100% of the total advance tax liability, after reducing earlier payments |
These instalment requirements are prescribed under Section 211 of the Income-tax Act, 1961.
Important Note
Failure to pay advance tax or deferment of the prescribed instalments may attract interest under:
Section 234B for default or shortfall in payment of advance tax.
Section 234C for deferment of advance-tax instalments.
How to Calculate Advance Tax Liability and Instalment Amounts
Advance tax is computed on the taxpayer’s estimated total income for the relevant financial year. The calculation should consider income from all applicable sources, eligible deductions, the selected tax regime, applicable tax rates, surcharge, cess and available tax credits.
Step 1: Estimate Income for the Financial Year
Estimate the income expected to be earned during the relevant financial year under all applicable heads, including:
Salary income
Income from house property
Business or professional income
Capital gains
Income from other sources
Income earned in earlier financial years may be used as a reference, but the calculation should be based on the taxpayer’s reasonable estimate of current-year income.
Step 2: Consider Expected Changes in Income
Adjust the estimated income for any expected increase or decrease during the year, such as:
change in salary or business receipts;
rental income;
interest or dividend income;
capital gains;
bonuses, incentives or commissions; and
any other taxable receipts.
Step 3: Determine Eligible Deductions and Exemptions
Reduce the deductions and exemptions available under the selected tax regime, subject to the prescribed conditions.
Only deductions permitted under the applicable tax regime should be considered while estimating taxable income.
Step 4: Compute Estimated Total Income
Calculate the estimated total income after considering eligible exemptions, deductions, set-offs and adjustments under the Income-tax Act.
Step 5: Calculate the Gross Tax Liability
Apply the applicable income-tax rates to the estimated total income.
Add, wherever applicable:
surcharge;
health and education cess; and
tax payable at special rates on specified income.
Step 6: Reduce Available Tax Credits
Reduce the following amounts from the gross tax liability, as applicable:
estimated TDS;
estimated TCS;
eligible foreign tax credit;
relief under the applicable provisions; and
advance tax already paid.
The resulting amount represents the taxpayer’s estimated net advance-tax liability.
Advance Tax Calculation Format
Particulars | Amount |
Estimated gross total income | ₹XXX |
Less: Eligible deductions | ₹XXX |
Estimated total income | ₹XXX |
Income tax on estimated total income | ₹XXX |
Add: Surcharge, if applicable | ₹XXX |
Add: Health and education cess | ₹XXX |
Gross tax liability | ₹XXX |
Less: Estimated TDS and TCS | ₹XXX |
Less: Other eligible tax credits or relief | ₹XXX |
Estimated net tax liability | ₹XXX |
Less: Advance tax already paid | ₹XXX |
Balance advance tax payable | ₹XXX |
Advance Tax Applicability
A taxpayer is generally liable to pay advance tax where the estimated tax liability for the financial year is ₹10,000 or more, after reducing eligible TDS and TCS credits.
The balance advance-tax liability should be discharged in the prescribed instalments within the applicable due dates.
Important: Advance tax should be recalculated during the financial year whenever there is a material change in estimated income, deductions or tax credits. Any shortfall in payment may attract interest under Sections 234B and 234C.
How to Pay Advance Tax Online Through the e-Pay Tax Facility
Advance tax can be paid electronically through the e-Pay Tax facility available on the Income Tax e-Filing Portal. Taxpayers may initiate the payment either after logging in to their account or through the pre-login facility using their PAN and mobile number. The payment should be made under Minor Head 100 – Advance Tax.
Option 1: Pay Advance Tax After Logging In
Step 1: Log in to the Income Tax Portal
Visit the Income Tax e-Filing Portal.
Log in using your PAN as the user ID, password and the applicable authentication details.
Step 2: Access the e-Pay Tax Facility
Navigate to e-File.
Select e-Pay Tax.
Click New Payment.
Step 3: Select the Applicable Income Tax Act
Select the Income Tax Act applicable to the relevant tax year.
For Tax Year 2026–27 onwards, select the option relating to the Income-tax Act, 2025, wherever applicable.
Proceed to the Income Tax or Corporation Tax payment category, depending on the taxpayer’s status.
Step 4: Select the Tax Year and Payment Type
Select the applicable Tax Year or Assessment Year, as displayed on the portal.
Choose Advance Tax – Minor Head 100.
Verify the relevant major head:
0020 – Corporation Tax, for companies; or
0021 – Income Tax Other than Companies, for non-corporate taxpayers.
Step 5: Enter the Tax Payment Break-Up
Enter the amount under the relevant components, such as:
income tax;
surcharge;
health and education cess;
interest; and
any other applicable amount.
Step 6: Select the Payment Mode
Choose an available payment method, such as:
net banking;
debit or credit card;
UPI;
RTGS or NEFT; or
payment at an authorised bank counter, where permitted.
Tax payment facilities are available in both pre-login and post-login modes, subject to the selected payment channel and bank.
Step 7: Review and Complete the Payment
Verify the PAN, tax year, major head, minor head and payment amount.
Accept the applicable terms and conditions.
Click Pay Now or Submit to Bank, as displayed.
Complete the transaction through the selected payment mode.
Option 2: Pay Advance Tax Without Logging In
Step 1: Open the e-Pay Tax Facility
Visit the Income Tax e-Filing Portal.
Under Quick Links, select e-Pay Tax.
Step 2: Authenticate the Taxpayer
Enter the PAN and confirm it.
Provide a valid mobile number.
Enter the OTP received on the mobile number.
Step 3: Select the Applicable Income Tax Act
Select the legislation applicable to the relevant tax year.
Proceed to the Income Tax or Corporation Tax payment tile, as applicable.
Step 4: Select Advance Tax
Choose the relevant tax year.
Select Advance Tax – Minor Head 100.
Continue to the tax payment screen.
Step 5: Enter and Verify the Tax Details
Enter the tax, surcharge, cess, interest and other applicable amounts.
Select the preferred payment mode and bank.
Preview the challan details before confirming the transaction.
Step 6: Complete the Payment
Click Pay Now.
Accept the applicable terms and conditions.
Complete the payment through the selected channel.
Download and Preserve the Challan Receipt
After successful payment, download and retain the challan receipt as evidence of advance-tax payment. The challan details generally include:
BSR Code;
date of payment;
challan serial number;
Challan Identification Number, where applicable; and
amount paid.
The BSR Code, payment date and challan serial number can also be viewed after login under e-Pay Tax → Payment History → View Details.
Important: Before confirming the transaction, verify the taxpayer’s PAN, applicable tax year, major head and Minor Head 100 – Advance Tax. An incorrect selection may affect the credit of tax and may require a challan-correction request.
Payment of Outstanding Income Tax Demand Online
An outstanding tax demand may arise where an amount becomes payable pursuant to an intimation, assessment order, rectification order or demand notice issued by the Income Tax Department.
Where the taxpayer agrees with the demand, the amount may be paid online through the Income Tax e-Filing Portal. The portal displays outstanding demands against the taxpayer’s PAN and allows the relevant demand to be selected for payment. Such payment is generally classified as tax on regular assessment, subject to the nature of the demand and the payment option displayed on the portal.
How to Pay an Outstanding Demand
Log in to the Income Tax e-Filing Portal.
Navigate to Pending Actions and select Response to Outstanding Demand.
Review the demand details, including the assessment year, demand reference number and amount payable.
Select Pay Now where the demand is accepted.
Choose the available payment mode and complete the transaction.
Download and preserve the payment challan for future reference.
Taxpayers should verify the demand before making payment. Where the demand is incorrect, partly correct or has already been paid, the appropriate response should be submitted on the portal instead of making a duplicate payment.
Banks and Payment Modes Available for e-Tax Payment
The e-Pay Tax facility supports tax payment through authorised banks and approved payment channels available on the Income Tax Portal.
Depending on the bank and payment facility selected, taxpayers may pay through:
authorised-bank net banking;
authorised-bank debit card;
payment gateway, including UPI and eligible cards;
RTGS or NEFT; or
an authorised bank counter, where available.
The list of participating banks and supported payment modes may be updated periodically. Taxpayers should therefore refer to the latest list displayed under the e-Pay Tax section of the official portal before initiating payment.
Conclusion
The e-Pay Tax facility provides taxpayers with a convenient and secure mechanism for paying advance tax, self-assessment tax, outstanding demand and other applicable income-tax liabilities.
Before confirming a payment, taxpayers should verify the PAN, applicable tax year or assessment year, payment category, tax amount and challan details. After successful payment, the challan receipt should be downloaded and retained as evidence of tax payment.
FAQs
Q1. Is online tax payment mandatory for every taxpayer?
Electronic payment is mandatory for specified taxpayers, including:
every company; and
every person, other than a company, whose accounts are required to be audited under Section 44AB of the Income-tax Act.
Other taxpayers may also use the e-Pay Tax facility voluntarily.
Q2. How can income tax be paid online?
Income tax can be paid through the e-Pay Tax facility on the Income Tax e-Filing Portal. Taxpayers may access the facility either before login through Quick Links or after logging in to their e-Filing account.
Q3. What information is required to pay tax online?
The taxpayer should keep the following information ready:
valid mobile number for OTP verification;
applicable assessment year or tax year;
correct tax-payment category;
amount payable under each tax component; and
access to the selected payment mode.
Q4. Which tax liabilities can be paid through the e-Pay Tax facility?
The facility may be used to pay:
advance tax;
self-assessment tax;
tax on regular assessment;
TDS or TCS;
interest, fee or penalty;
outstanding demand; and
other prescribed direct-tax liabilities.
Q5. What amounts are included in the total tax payable?
The total amount payable may include:
income tax;
surcharge, where applicable;
health and education cess;
interest under the applicable provisions;
late-filing fee;
penalty or other statutory dues; and
outstanding demand, wherever applicable.
Eligible TDS, TCS, advance tax, rebates, reliefs and other tax credits should be reduced while determining the final liability.
Q6. What are the benefits of paying income tax online?
Online tax payment allows taxpayers to:
make payment through multiple authorised modes;
generate an electronic challan;
view payment history;
track transaction status; and
retain digital proof of payment.
Q7. Can the payment mode be changed after generating a challan?
The payment mode selected for an existing challan generally cannot be changed. Where a different payment mode is required, the taxpayer should generate a fresh Challan Reference Number and complete the payment using the preferred mode.
Q8. What should a taxpayer do if the wrong assessment year is selected?
Where eligible, the taxpayer may submit a challan-correction request through the e-Filing Portal. The correction facility is subject to the prescribed conditions and time limits. If online correction is not available, the taxpayer may need to approach the jurisdictional Assessing Officer or follow the applicable challan-correction procedure.
Q9. What should be done if the payment transaction fails?
The taxpayer should first verify whether the amount has been debited from the bank account.
If no amount has been debited, a fresh challan may be generated.
If the amount has been debited but the payment status is not updated, the taxpayer should check the payment status on the portal and contact the bank, where required.
A duplicate payment should not be made without confirming the status of the earlier transaction.
Q10. Where can generated or expired challans be viewed?
Generated challans and payment history can generally be viewed under the e-Pay Tax section after logging in to the Income Tax e-Filing Portal.
Q11. How is the e-Pay Tax facility different from the earlier tax-payment system?
The e-Pay Tax facility integrates challan generation, multiple payment modes, payment history and transaction-status tracking within the Income Tax e-Filing Portal. It also supports both pre-login and post-login access.
