Income Tax E-Payment: Steps to Pay Income Tax Online
- Bhavika Rajput
- 21 hours ago
- 7 min read
When it comes to paying their income taxes, many taxpayers encounter difficulties and frequently require help. Many modifications have made tax payments easier and simpler as a result of the Income Tax Department's digitisation. Taxpayers can use a variety of banking services to file ITRs and pay taxes online through the Income Tax Department. The process is smooth and secure, even when they complete the payment in a few clicks. However, it is vital to understand the steps involved and follow them thoroughly to ensure the hassle-free completion of the online payment of income tax.
Table of Contents
What is Income Tax E-Payment
Income tax e-payment is a feature that allows taxpayers to utilize their net banking account to pay their income taxes online. If a taxpayer has a bank account with net banking or if their bank offers an e-pay tax facility, they can use this service. To streamline the tax payment process, the Income Tax Department recommended that banks switch from their direct tax payment methods to the e-filing platform. Taxpayers can use this service to pay their taxes online, including e-freight, GST, customs charges, state taxes, EPF, ESI, direct taxes, and indirect taxes. Additionally, they can use the capability to view their past and present challans.
Benefits of e-Tax Payment
Online e-tax payments are available to taxpayers at any time and from any location.
Taxpayers can complete their tax payment operations with the online payment facilities. You don't have to go to the bank and stand in line.
The e-tax payment is processed right away by the income-tax department. The Bank does not need to adhere to any manual procedures.
Taxpayers get acknowledgment when their payment is received.
Eligibility for Income Tax E-Payment
The following assessees are required to pay taxes electronically as of April 1, 2008.
Each corporate assessee.
Every assessee to whom the rules of section 44AB of the Income Tax Act, 1961, apply, excluding companies.
Prerequisites for Income Tax E-Payment
One needs to make sure of the following to pay taxes online:
You need to open an account with a bank that has the authority to handle tax payments.
The account you wish to use to make the payment must have online banking enabled.
Furthermore, you may use a credit or debit card, UPI, or both to make the payment.
Steps for Income Tax E-Payment
Here's a detailed tutorial on using the Income Tax Portal to pay taxes without logging in:
Step 1: Access the "E-Pay Taxes" section of the income tax portal. To access the Income Tax Portal, visit https://www.incometax.gov.in/. Click the 'e-Pay Tax' option from the 'Quick Links' section. 'e-Pay Tax' is another term you might look up in the search.
Step 2: Enter your mobile number and PAN/TAN. Enter your PAN on the "e-Pay Tax" page, then enter it again to be sure. After entering your mobile phone number, click "Continue." Click 'Continue' after entering the 6-digit OTP sent to your cell number.
Step 3: Choose the appropriate Assessment Year and mode of payment. Click "Proceed" after selecting "Income Tax" in the first box. To make payments for FY 2024–2025, choose 2025–2026 from the dropdown option under "Assessment Year." Click "Continue" after choosing "Self-Assessment Tax (300)" under "Type of Payment."
Step 4: Provide your tax payment information. Verify that the payment amounts are entered accurately under the relevant category. You can find all the amounts by consulting the pre-filled challan on TaxBuddy.
Step 5: Decide on a payment option. Press 'Continue' after selecting the bank and payment type to submit the taxes. You can pay at the bank counter or online using a debit card, credit card, RTGS/NEFT, UPI, or internet banking.
Step 6: Confirm payment details. Once 'Continue' has been clicked, you will be able to view the challan information. To make the payment, click the 'Pay Now' button at the bottom of the page after double-checking the payment details you supplied. If you need alterations to the information, click 'Edit'.
Step 7: Send in the money. Click 'Submit To Bank' after reading the Terms and Conditions and checking the box to indicate your agreement.
Step 8: Obtain confirmation of payment. After the upload of your tax payment, you receive a confirmation. To finish the return filing process, you will need the BSR code and Challan number; therefore, don't forget to get the challan.
Step 9: Proceed to file your taxes now. Press the "Add Paid Tax Details" button. Enter the tax amount paid as well as additional information from the challan, including the Challan Serial Number, BSR Code, and the date of payment. You can now "e-file" and "e-verify" the return.
Steps To E-Pay Income Tax After Log-in to E-filing Portal
Step 1: Your User ID and password are to be entered to open the e-Filing portal.
Step 2: Pick e-File > e-Pay Tax from the Dashboard. It will head to the e-Pay Tax. To start the e-payment procedure, tap “New Payment” on the e-Pay Tax page.
Step 3: Click Proceed on the tax payment tile that applies to you on the New Payment page.
Step 4: Complete the aforementioned Steps 3 through 9 to electronically pay taxes without logging in.
Banks Authorised for Income Tax E-Payment
The following is a current list of banks that are available for electronic tax payments using the e-filing portal:
Allahabad Bank | Andhra Bank | Axis Bank |
Bank of Baroda | Bank of India | Bank of Maharashtra |
Canara Bank | Central Bank of India | Corporation Bank |
City Union Bank | DCB Bank | Federal Bank |
HDFC Bank | ICICI Bank | IDBI Bank |
Indian Bank | Indian Overseas Bank | IndusInd Bank |
Jammu and Kashmir Bank | Karur Vysya Bank | Karnataka Bank |
Kotak Mahindra Bank | Punjab National Bank | Punjab & Sind Bank |
RBL Bank | State Bank of India | South Indian Bank |
UCO Bank | Union Bank of India |
Conclusion
The process of income tax payment online offers convenience to taxpayers as they can pay their taxes due from anywhere. However, it is crucial to understand all the steps of the process to avoid any errors during the payment. If you still have doubts, the best option is to consult an expert who can help you do it.
Frequently Asked Questions
Why do I need to pay taxes?
For salaried staff members, companies generally deduct taxes at source. You might need to make additional tax payments, though, if you work for yourself or have sources of income other than your salary, including rental income. The first step in determining your tax liability or refund eligibility is filing your tax returns.
What payment method can I use?
You should determine your tax liability before making a payment. Credit or debit cards, or Personal Internet Banking, can then be used to pay taxes online.
How to make income tax payments online?
To pay your income taxes online, go to the "e-Pay Tax" page after logging into the e-filing portal. An interface will then show up on your screen. To start the online tax payment process, click "New Payment" from there. After that, carefully follow the directions and enter the necessary information to complete the online payment.
How to download the income tax challan after online payment?
You will receive a confirmation email and an SMS as soon as your tax payment is complete. The e-pay tax interface's payment history page allows you to view your payment information and obtain the income tax challan receipt.
How to pay self-assessment tax online?
When filing your income tax returns, you could occasionally notice the amount of tax owed. This is known as the self-assessment tax. By going to the Income Tax Portal's "e-Pay Tax" area, you can make the payment online. Enter the PAN or TAN and your mobile number. Subsequently, identify the assessment year and payment method. After that, complete all the necessary fields and submit as directed.
How to fill out Challan 280?
Choose 'e-payment: Pay Taxes Online' from the TIN NSDL page to complete Challan 280. After that, you must select "INCOME TAX & CORPORATION TAX (CHALLAN 280)". After 30 minutes, a form will appear on your screen. Complete it within 30 minutes, and follow the directions to submit.
Is it mandatory to create a Challan (CRN) for tax payments?
The Challan for the payment of direct taxes is essential to use the e-Pay Tax service at the e-Filing portal. These issued Challans will all get distinctive Challan Reference Numbers (CRNs).
When should I pay my taxes online?
To avoid late payment penalties from the tax authorities, please make tax payments with a due date two to three working days in advance.
Can a taxpayer pay in cash and is there a limit on cash transactions allowed?
Taxpayers can use the Pay at Bank mode to make cash payments. Nevertheless, the highest sum paid in money for taxes is Rs 10,000 on the Challan Form (CRN).
Can a taxpayer request for a refund/reversal of the tax amount paid mistakenly?
The electronic filing facility will not accept requests for a refund of the challan amount. For the applicable Assessment Year, the taxpayer is encouraged to include that sum as a tax credit on their income tax return.
Can I make a TDS payment online?
All government and business deductors, as well as other assesses, who are subject to mandatory audits under Section 44AB, must employ electronic transfers to pay TDS as of January 1, 2014. The taxpayer must have a net-banking account with an approved bank to use this service. You can find the list on the NSDL-TIN website.
Is TAN mandatory for making TDS payments online?
According to Section 203A of the Income Tax Act of 1961, all TDS returns, along with all TDS payment challans and certificates, must include the Tax Deduction Account Number (TAN). You can obtain the TAN online by filling out Form 49B, which is assigned by the Income Tax Department.
What are the various modes available for making payment after the generation of Challan (CRN)?
The following methods of paying taxes are available upon the creation of a Challan (CRN):
Net Banking (choose banks that are authorized)
Certain Authorized Banks' Debit Cards
Pay at the bank counter, which is available at certain authorized banks' branches.
RTGS/NEFT (via any bank that offers this service)
Transaction Gateway (using sub-payment methods provided by the bank, such as UPI, Net Banking, Credit Card, and Debit Card)
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