How to make e-payment of income tax
Income tax e-payment procedure
Hello, in this post we will discuss the Income Tax e-payment procedure with Challan ITNS 280. We will cover the following:
Introduction
Income Tax is a tax levied by the government on income generated by all entities for the said period. This is a key source of income for the government, which is used for various public developments.
All entities must pay the income tax on the income received through different sources within the specified date. Also, they must file income tax returns providing such income and payment details.
Payment Due Date
31st March of the Financial Year is the due date for the Payment of Income Tax.
Interest Applicability
If the payment is being delayed from the due date, then interest would be payable at 1% per month from the month due to the month when it is being paid.
Modes of IT payment
Income Tax e-payment can be possible in two ways:
- By cash: Payment of tax in cash at the counter through any authorized bank.
- By e-payment: Payment of Tax through Net banking /credit Debit card/ Payment gateway (Credit card/UPI and others)
History of Income Tax Payment
The electronic payment scheme of taxes for income taxpayers was introduced in 2004. It was made mandatory for the following categories of taxpayers to expand the scope of electronic payment of taxes.
- All corporate assessees
- All assessees'(other than companies) to whom provisions of section 44AB of the Income Tax Act are applicable.
The scheme of mandatory electronic payment of taxes for Income Taxpayers was made applicable from 1st April 2008. This applicability was made for all payments, irrespective of the assessment year to which it belongs.
Taxes that can be paid online are:
- Advance Tax for Income Tax
- Self Assessment Tax for Income Tax
- Tax Deducted at Source
- Tax Collected at Source
- Regular Assessment Tax for Income Tax
ITD (Income Tax Department) offers a gateway for Taxpayers to make electronic payments of taxes through the Internet banking facility offered by the authorized banks. They are also provided with an option to make electronic taxes payments through the Internet using debit cards.
Prerequisites for e-payment
- Valid PAN
- Internet Banking Account/Debit Card or Credit Card / UPI account
- Good internet connection
- Also, sufficient balance in the bank to cover the amount of payment for immediate Transfer
Step-by-Step procedure to make e-payment
- Calculate the total income tax payable for the year along with any interest applicable
- Visit “https://www.incometax.gov.in/” and login to your income tax account
- Go to “e-pay Tax” under e-File menu and click on New Payment
- Select Income Tax and click on Proceed
- Select the Assessment Year and the type of payment from the dropdown given to continue
- In the next window, enter the payable amount in the relevant fields and continue
- Next, select the mode of payment i.e. Netbanking/Debit Card/payment gateway, and continue
- Preview the details and confirm the amount to be paid. Click on Pay Now, and you will be redirected to the selected payment channel, i.e.
- If Netbanking is selected, then to the Netbanking gateway of the selected bank
- If Debit Card is selected, then to the payment gateway for debit card details entry
- If payment gateway is selected, then the selected payment platform of the authorised bank
- On payment completion, CRN (Challan Reference Number) will be generated, which can be downloaded for reference.
Points to Remember
- Do not make any mistakes while paying, particularly when mentioning the PAN.
- BSR code on e-Payment necessarily would not be of the branch where you hold the account. So, you need to verify the Counterfoil for the right BSR code and branch name.
- While filling out the challan, select the assessment year and not the Financial year. [Consequence further on wrong selection is that users should go to AO or the Income Tax commissioner to get it right]
With that, we have reached the end of this post.
Let us know your opinions and queries in our comment section below.
