A Taxpayer’s Guide to Online Tax Payment
As much as the process to calculate your income tax and filing returns might seem like a hassle sometimes, the payment procedure of the income tax due is easy and can be completed in a jiffy!
Step-by-step process to pay income tax dues online
Here are the steps to pay the income tax that you are liable to pay online:
Step 1 - Visit the official ITR e-filing website and choose “Challan 280”
- At first, log in to the government income tax e-filing website at https://www.incometaxindiaefiling.gov.in/home
- Then, select ‘Challan No./ITNS 280’ from the given options.
Note - Online tax payment can be further classified into self-assessment tax, advance tax, tax on distributed profit/income, and surcharge and tax on regular assessment. Irrespective of whether you choose to visit the bank instead of paying online, Challan 280 is mandatory in payment of taxes.
Step 2 - Enter your personal details
- At first, choose ‘0021’ to pay Income tax (for individuals and not for companies)
- Then, key in your PAN details in the box.
- Choose the relevant Assessment Year (AY). For the period of 1 April 2018 - 31 March 2019, the relevant AY is 2019-20.
- After that, provide your complete address in detail in the field provided.
- In the next step, select the type of payment correctly.
- Choose ‘(100) Advance Tax’ option for paying Advance Tax
- Choose ‘(300) Self-Assessment Tax’ for paying Self-Assessment Tax
- Choose ‘(400) Tax on Regular Assessment’ for paying Regular Assessment Tax
- When done, choose from net banking or make payment by debit card as per your convenience.
- In the next step, correctly enter the ‘Captcha Code’ that is appearing on the screen.
- Once you are done, click on the ‘Proceed’ option to go to the next step.
Note - Ensure that you are selecting the accurate assessment year (currently, we are on 2019-20). Also, select the ‘Self-Assessment Tax’ option in case you are paying taxes after the end of the financial year.
Step 3 - Cross-check all information before proceeding
Based on the mode of payment, you are redirected to your bank’s net banking webpage. Herein you are supposed to double check all the information appearing on the page. Once that is done, enter the total amount of income tax to be paid in the required field. Click on the ‘Confirm’ tab when you are done.
Note - The fields of interest, surcharge, penalty bank and education can be left blank on this page. You can place the total amount in the ‘Income Tax field’ in a comprehensive manner.
Step 4 - Review the receipt of Challan 280
Once the process of online tax payment has been concluded, on the next screen, you will get your tax receipt. The BSR code and the challan serial number can be found on the bottom right corner of the challan.
Note - It is extremely important that you save a copy of your proof of payment or take a screenshot from your smartphone because at the time of filing your income tax return, you will require the BSR code as well as the challan serial number. In case you have not been able to save a copy of the tax receipt, you can simply visit your net banking account to get the details.
Filing Returns After Payment
Payment information needs to be reported once payment has been made: The payment information thereafter needs to be reported once you commence filing your income tax return. For this, visit the Taxes Paid Summary webpage, and enter your challan serial number and BSR code.
Income Tax is paid for:
- Self-assessment tax
- Advance tax
- Outstanding tax demand
Filing your income tax return might turn out to be an utterly fruitless activity if you have not paid your tax payment entirely. Sometimes, you might notice a “tax payable” option when filing your tax returns. Ensure that you pay this amount online, for successful e-filing of the same later on. If you are paying your due after March 31st, you might need to pay additional interests under Section 234B and 234C of the Income Tax Act, 1961.
If your annual taxes are worth more than Rs.10,000, you are mandated to make your online tax payment in advance. For salaried professionals, these deductions are generally slashed from the TDS by employers.
You are required to pay advance tax in the following situations:
- If you freelance.
- If you are a business owner.
- If you are a salaried individual yet receive a high net income via rents or capital gains.
Calculation and Payment of Advance Tax
- Total Income to be Accurately Gauged: Add up incomes coming in from all your sources. In case you freelance, roughly calculate your yearly income from all your clients.
- Freelancers Need to Dock all Deductions: All expenses included in corresponding receipts are eligible for deductions. These include the rent you pay for your house, workplace, travel expenses, mobile bill, etc.
- Leave scope for deductions: Deductions under Sections 80C, 80D or 80E under the Income Tax Act, 1961, can be reduced from the deductions you plan on claiming on your return. Decrease the deductions from your total remuneration and enter the taxable income zone.
- Add up all taxes due on your total income: Check the recent Income Tax slab rates and commence applying the same on your taxable income. Herein, ensure that you lessen any TDS that may have been deducted already from all total due amount. You can attain all this via online payment.
Outstanding Tax Demand:
At times you might be required to make a certain payment in order to comply with the respective demand notice. If you come to terms with the assessing personnel, you can pay for such taxes online in a hassle-free manner.
With a little effort, online tax payment can render your tax calculation and subsequent payment extremely effortless to cope with.
Online Tax Payment FAQs
- Is it compulsory to pay income tax online?
It is compulsory for taxpayers that fall in the following categories to make their income tax payments online:
- Individuals who qualify for provisions of Section 44AB (those who have a business income over and above Rs.40 lakh in the previous financial year, and those whose professional income is over and above Rs.10 lakh in the previous financial year).
Income tax payments can be made from the comfort of your home or work through your bank’s net-banking facility. The tax amount will be transferred immediately once you have made the payment and you will not have to pay any penalty even if the tax is paid at the last minute. Your personal details that were filled in the challan will remain fully secure.
The last date to file your income tax returns for FY2017-18 is March 31, 2018.
In case you come across any issues when paying income tax online, get in touch with the TIN call centre at 020-24994200. You could also write an email with the subject line Online Payment of Direct Tax and send it to email@example.com.
Your challan’s status can be verified on the NSDL website under the “Challan Status Inquiry” after five to seven days post making the payment online. If you still cannot access the status of the challan, get in touch with your bank.