The Process of tax payment has become easier as it can be made online now. Visit the official website in order to make your income tax payment online. First choose Challan 280, then enter your personal information, review the details which you entered, and submit it online.
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What is Online Tax Payment?
The process earlier to submit your tax offline required a lot of time and paperwork making the whole process very complicated. As technology advances, a lot of task can be done online reducing paperwork, time, and effort. The same goes for the payment of tax which can now be done online in few easy steps.
The Income Tax Department launched an e-tax system which allows you to pay your tax by filling up the necessary documents online thus making the whole process faster and easier.
Steps to Pay Income Tax Online
In order to make income tax online, you need to follow the steps mentioned below:
- Step 1 – Visit tin-nsdl.com and click on ‘e-payment: Pay Taxes Online’
- Step 2 – You will be redirected to a different page on doing that. There click on ‘Proceed’ under ‘Challan No./ITNS 280’ of the ‘Non-TDS/TCS’ tab
- Step 3 – In the next page, select ‘(0021) Income Tax (Other than Companies) under the Tax applicable tab and provide the details asked for.
- Step 4 – Select the mode of payment.
- Step 5 – Enter the captcha code displayed on the screen and click on ‘Proceed’.
- Step 6 – On doing that, you will need to confirm the information provided in the previous page. To confirm, click on the ‘Submit to the bank’ button.
- Step 7 – Next, you will be redirected to the bank website to complete the payment.
- Step 8 – Once the payment is complete, a receipt will be generated which will contain details like the amount paid as tax, BSR code, challan serial number, date of challan etc.
Eligibility of Paying Tax Online
In order to be eligible for Paying tax online, you need to make sure that you meet the eligibility criteria listed as per the Income Tax Act.
- You must be an Indian citizen having an annual income of Rs.2.5 lakh or more
- If you are above 60 years, annual income should be more than 3 lakhs and 5 lakhs if you are above 80 years
- Have a firm that falls under guidelines of Section 44AB or a co-operative society, BOI, AOP, artificial juridical person, and local authority (ITR 5)
- A resident Indian who has property or financial interest in an entity or has signing authority of any account held outside the country
- If you claim tax relief under Sections 90 and 90A or claimed deductions as per Section 91
- If you an assessee responsible for producing returns under Section 139 (4B) (ITR 7)
- Any company/companies
Working of online Tax Payment
The payment of tax online is dependent on certain elements which are mentioned below in detail:
- PAN: You must have a valid PAN Card issued in your name to pay your income tax. The PAN card contains the 10-digit alpha-numeric number called PAN. Moreover, the PAN number is also used to log in to the ITR portal. Your PAN is the most important component if you successfully wish to pay your income tax online.
- TAN: TAN better known as Tax Deduction and Collection Account Number is another mandatory requirement for the successful payment of your income tax. As per the Income Tax Act, 1961, the Tax Deduction at Source (TDS) is deducted by the payer before the payment is made to the beneficiary and then submitted to the IT department. It is mandatory for individuals and organisations involved in such types of payments to have TAN.
- E-payment: If you hold a PAN and TAN then you can successfully make direct tax payments online through various online portals.
- OLTAS: Online Tax Accounting System (OLTAS) is the database which helps the Income Tax Department to manage the collection of tax from all over the country.
- ERACS: Electronic Return Acceptance and Consolidation System (ERACS) is the interface between the taxpayer and a web-based utility for uploading of TDS, Tax Collection at Source (TCS), and Annual Information Return (AIR) on the TIN’s central system.
Benefits of Tax Online Payment
The benefits of online tax payment are as follows:
- You can instantly transfer funds from the account
- You can pay taxes from anywhere 24 x 7 using net banking
- Transaction ID of the payment will be available on the bank account
- What you write on the e-challan will be sent directly to the Income Tax department
- You can check whether your payment was received by the department by visiting the website of the Tax Information Network.
Documents required for paying Income Tax Online
Given below is the list of documents you will have to submit in order to successfully pay your income tax online:
- Form 16
- Salary slips and bank statement
- Form 16A, Form 16 B, or Form 16C
- Interest certificates issued by bank or post office
- Form 26AS
- Tax saving investment proof
- Deductions under Section 80D to Section 80U
- Aadhaar Card
- PAN Card
- Home loan statement from bank or NBFC
- Capital gain on selling property and/or mutual funds
List of Authorized Banks for Tax Payment Online
The list of Authorised banks which are accept Online Tax Payment
|Vijaya Bank||State Bank of India||Indian Overseas Bank||Dena Bank||Bank of India|
|United Bank of India||Punjab National Bank||Indian Bank||Corporation Bank||Bank of Baroda|
|Union Bank of India||Punjab and Sind Bank||IDBI Bank||Central Bank of India||Axis Bank|
|UCO Bank||Oriental Bank of Commerce||ICICI Bank||Canara Bank||Andhra Bank|
|Syndicate Bank||Jammu & Kashmir Bank||HDFC Bank||Bank of Maharashtra||Allahabad Bank|
Method to Pay your Tax Offline
- Visit the nearest branch of your bank and ask for an applicable challan form. In this case, you will be asking for Challan 280.
- Fill the challan form. Make sure all the details filled by you are correct.
- Go to the bank’s counter and submit the form along with the tax amount payable. The amount can be paid either in cash or cheque. The bank may not be willing to accept a large amount in cash, hence it is recommended you make the payment via cheque. If you are paying through cheque, ensure it is in favor of the ‘Income Tax Department’.
- The bank official will take the money, and tear of a portion of the challan form, stamp it and give it to you. This should be kept safely with you as it is a proof that you have paid your tax.
It may take up to 10 days for the payment of your tax to reflect on your Form 26AS. The payment of your tax on Form 26AS will reflect as either Advance Tax or Self-assessment tax.
Online Tax Payment FAQs
- What is Online tax payment?
- Is it mandatory to make tax payment online?
- Which details are mentioned on the receipt after online tax payment process is completed?
- What are the two common mistakes I should avoid while paying tax online?
- What do I have to do if any error happens at the time of online tax payment?
Payment of income tax online by taxpayers is known as online tax payment or e-payment of taxes.
No, it is not mandatory to make tax payment online. You can choose to opt for the offline method.
The receipt which will be generated after the online tax payment process is completed will contain details like the amount paid as tax, BSR code, challan serial number, date of challan etc.
Two common mistakes which you need to avoid while making tax payment online is selecting the wrong assessment, financial year and incorrect codes.
You will be required to visit the office of your assessing officer and request him to make the corrections.