Online Tax Payment - Income Tax Payment Guide for TaxPayer's

The process of tax payment has become easier as it can be made online now. Visit the official website in order to make your tax payment online, choose Challan 280, enter your personal information, review the details entered, and submit it online.
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 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.
Challan_Noumber_ITNS 280

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.
Personal_details

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.

information

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.

receipt_of_Challan_280

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

Self-Assessment Tax:

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.

Advance Tax:

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

  1. Is it compulsory to pay income tax online?
  2. It is compulsory for taxpayers that fall in the following categories to make their income tax payments online:

    • Companies.
    • 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).
  3. Are there any benefits to paying my tax electronically?
  4. 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.

  5. What is the due date to file my income tax returns?
  6. The last date to file your income tax returns for FY2017-18 is March 31, 2018.

  7. What should I do if there are errors when paying income tax online?
  8. 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 info@nsdl.co.in.

  9. After making tax payment online, what should I do if I don’t find the challan’s status online?
  10. 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.

News About Online Tax Payment

  • Aldona panchayat to launch online payment of house tax

    The Aldona Panchayat has decided to facilitate the payment of house taxes by launching its online payment facility. This will be put into effect from the 15th of August this year. The announcement was recently made during a gram sabha after a presentation by bank officials. The sarpanch Dipak Nair announced that the panchayat will introduce the online house tax facility from the 15th of August this year. This announcement was made by the sarpanch in the presence of panchayat members. Pertaining to the announcement, an agreement will be signed with HDFC Bank by the panchayat within a few days. The gram sabha members were also given a presentation on the payment of house taxes online.

    20 August 2018

  • Odisha: Click and pay tax from September

    The civic body of Odisha is planning to introduce online holding tax payment in all its wards from 1 September 2018. At this moment, the online tax payment service is available at just 16 out of the 67 wards. 1 September 2018 onwards, people from all across the city will be able to pay holding taxes both online and offline.

    The Bhubaneswar Municipal Corporation has started digitising the holding tax data of all units in all wards under the e-governance module of the state government to execute the plan. After that, the taxpayers can simply visit the Odisha Online website of the state government and pay the tax online. The payment can be made using debit cards, credit cards, or internet banking.

    A senior official said that the civic body is aiming at ensuring a good collection of holding tax by easing the service for the residents. Reportedly, the civic authorities will also introduce an alert mechanism which will let the taxpayers know about their dues and the payment dates. Mayor Ananta Narayan Jena also said that in addition to making the online payment system available in all the wards, they will also be geo-tagging all the holdings to make sure that the tax section calculates all the dues without any error.

    9 July 2018

  • Tax axe still looms for banks on free services like maintaining minimum balance

    The Indian banks have been paying thousands of crores in taxes on services provided to customers maintaining a minimum balance in their accounts. The banks will have to escalate the issue to the adjudicating authority with the tax department in order to settle it.

    Banks like State Bank of India (SBI), ICICI Bank, HDFC Bank, Axis Bank, etc. had received notices earlier from the Directorate General of Goods and Services Tax Intelligence (DGGSTI). This comes even after the government issued a detailed Frequently Asked Questions (FAQs) for the financial services industry, to clarify that free services given to unrelated parties will not fall under the Goods and Services Tax (GST).

    5 June 2018

  • Tax information exchange pact with Brunei approved by the Cabinet

    Signing of the tax information exchange treaty between India and Brunei Darussalam got approved by the Union Cabinet led by Prime Minister Narendra Modi. As a matter of fact, this agreement will allow the authorities of both the countries to exchange information related to administration and enforcement of the tax-related domestic laws for providing assistance. As per the officials, all the information collected under this pact will be kept confidential and will be disclosed only to the concerned bodies and officials. Information might also be disclosed to other authorities with written permission of the information provider country.

    21 May 2018

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