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.
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!
Procedure 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
- Under the ‘Quick Links’ option, click on the ‘Challans’ option.
- Click on the ‘Confirm’ button.
- Select 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 2019 - 31 March 2020, the relevant AY is 2020-21.
- 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
Note - Ensure that you are selecting the accurate assessment year (currently, we are on 2020-21). Also, select the ‘Self-Assessment Tax’ option in case you are paying taxes after the end of the financial year.
Step 3 - Select Mode of Payment
- 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.
Step 4 - 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 5 - 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.
Eligibility for Online Tax Payment
The following assessees are required to pay their taxes online:
- All corporate assessees
- All assessees (apart from companies) to whom the provisions of Section 44AB of the Income Tax Act apply
Benefits of Online Tax Payment
The following are the key benefits of online tax payment:
- Taxes can be paid at any time and from any location via your net banking account, thus making it a convenient option for taxpayers
- Your funds will be instantly transferred from your bank account to the government, thereby making it a quick process
- Everything written on your e-challan will be sent directly to the Income Tax Department without any kind of data entry from the bank, thereby making it a secure process
- The challan copy as well as the receipt copy can be printed and saved for your reference
- A clear and legible receipt will be sent by the bank to you as soon as the payment is authorised by your bank
- Your bank statement will contain the transaction ID of the online payment, thus giving you access to record should you require it in the future
- You can track the status of your online payment on the TIN NSDL website
FAQ's on Online Tax Payment
- How can I know how much advance tax I have paid?
- What is the last date for the payment of advance tax?
- What is the last date for the payment of Self-Assessment Tax?
- What are the modes of payment through which I can pay my tax online?
- What should I do if my bank does not have an online payment facility or is not an authorised bank for E-Tax?
Once you pay your tax online, the advance tax if paid by you will reflect on your Form 26AS within 3-4 working days of making the payment.
The last date for the payment of advance tax is given below in the table:
|On or before 15th June||15% of advance tax|
|On or before 15th Sept||45% of advance tax|
|On or before 15th Dec||75% of advance tax|
|On or before 15th March||100% of the advance tax|
As per Section 140(1) of Income Tax Act, Self-Assessment Tax must be paid before the date of filing of return of income. If you pay the Self-Assessment Tax after the date of filing of return of income, then you will have to pay additional interest as per Section 234A.
The modes of payment through which you can pay your tax online are credit card, debit card net banking, UPI, or e-wallets.
In case your bank does not have an online payment, facility or is not an authorised bank fir E-Tax, you can file your income tax return from the account of another persona whose bank provides the online payment facility. However, you must ensure that your challan clearly mentions your PAN number.