How to Pay e-Tax Payment Online in India

What is e-Tax Payment?

E-Tax Payment means electronic tax payments, which facilitate taxpayers’ payment of direct taxes online. In order to make use of the facility, the taxpayer must have a net-banking account with any of the authorized banks.

As part of its OLTAS (Online Tax Accounting System) initiative, the Income Tax Departments are collecting and maintaining records on tax paid through banks.

The IT (Income Tax) department launched an electronic payment system for taxpayers to pay direct taxes online. Now, taxpayers can either pay direct taxes physically or electronically, depending on their preferences.

For Example: 1. Taxpayers may pay directly at authorized banks by producing hard copies of the Challan or via net-banking with any of the authorized banks.

Why Payments must be made online

There are certain taxpayers in India who cannot pay their taxes by physical means, but must pay their taxes electronically. These taxpayers include:

• 

  Companies of All types

• 

  Taxpayers whose accounts are liable for audit under section 44AB must submit their financial statements.

There is always a benefit to choosing to pay taxes through the e-tax payment route for those who do not fall within the mandatory category. It is always recommended to use the e-payment method because it is both convenient and saves time.

Benefits of e-Tax Payments

The use of e-payments as a method of paying income tax has many benefits.

• 

  Using e-payment is simple, secure, and time-saving. It can be done wherever and whenever you want.

• 

  Upon receiving the payment, the amount will be transferred instantly from your bank account.

• 

  The official website of the Tax Department provides information about whether the Income Tax Department has received your tax payment.

• 

  There will be no data entry required for the bank as the information on the e-challan will go directly to the Income Tax Department.

• 

  E Tax payments are deducted from online bank accounts immediately, and a receipt for tax payment is issued.

Direct Taxes in E-payments

E-payment are available for the following direct taxes:

• 

  Income-tax

• 

  Corporate tax

• 

  Equalization Levy

• 

  Securities Transaction Tax (STT)

• 

  Tax deducted at source (TDS)

• 

  Tax collected at the source (TCS)

• 

  Wealth-tax and other direct taxes, like gift tax, expenditure tax, etc.

How to Pay Different Taxes Online

Source – https://www.tin-nsdl.com/

8 Simple Steps to Pay Income Tax Online

• 

  Step 1: Visit www.tin-nsdl.com to access the NSD-TIN website.

• 

  Step 2: To pay taxes online, go to services and select “e-payment”.

• 

  Step 3: Choose the appropriate challan, which is TNS 280 for income tax payments.

• 

  Step 4: A new page will appear asking you for the following information:

  1. PAN (Permanent Account Number)
  2. Assessment Year
  3. Addresses of taxpayers
  4. Payment Method
  5. Payment Modes
• 

  Step 5: A confirmation screen will appear once all the details have been entered.

• 

  Step 6: Select the bank you want to use online banking with and click on the submit button.

• 

  Step 7: You can now enter your payment details at the bank’s website by entering your online banking username and password.

• 

  Step 8: You will receive an acknowledgement with the Challan Identification Number, payments details, and bank name after making the payment on the bank’s website.

  The Office of the Chief Controller of Accounts (OCA) and the Reserve Bank of India have authorized the following 27 banks to collect e-Tax and Service tax through internet banking (E-payment) for all commissionerates.

E-Tax Payments allowed to 27 Banks

Source - https://www.cbic.gov.in/htdocs-cbec/bankslst-cs-epay

E-Tax Payment Codes:

In order to make E-payment of income tax and corporate tax, Challan 280 needs to be filled out. Below is a list of with some details to include:

Tax codes are listed in Challan 280 in order to assist in selecting the correct tax. The following codes are provided:

• 

  Companies must pay income tax under 0020.

• 

  A non-corporate taxpayer pays income tax under this code 0021.

• 

  There are six types of payments described in Challan 280, and the assessee must choose the appropriate code for each one.

• 

  Code 100 – Advance tax payment.

• 

  Code 300 – Self-assessment tax is payable with this code.

• 

  Code 400 – Regular assessment tax falls under this code.

• 

  Code 106 – Taxes on distributed profits is subject to this code.

• 

  Code 107 – Income tax on distributions is subject to this code.

• 

  Code 102 – Surtax applies to this code.

Procedure for e-payment of Central Excise & Service Tax

A web-based Payment Gateway named EASIEST was launched by the Central Board of Excise and Service Tax (CBEC) in 2007 that allows assessees to pay Central Excise duties and Service Tax online. It provides accurate data on tax payments from banks for the revenue and taxpayer accounting systems by interacting with their e-payment portals.

For all Central Excise and Service Tax Assesses, except in exceptional cases, electronic payment through internet banking has become mandatory with effect on October 1, 2014.

For More – Read here

Service Tax E-payment Steps

• 

  Step 1: Check out > https://www.cbic.gov.in/htdocs-cbec/easiest-idx

• 

  Step 2: Now Find E-Payment (Excise & Service Tax) where you will directed to this link – xhttps://cbec-easiest.gov.in/EST/InputPageForEPaymentServlet

• 

  Step 3: An Assessee must enter a 15-digit Assessee Code allotted by the jurisdictional Commissionerate to pay Service Tax online.

• 

  Step 4: Now Validation of Assessee codes will take place online.

• 

  Step 5: This tool displays information about the assessee like name, Address, Commissionerate code, etc. as they appear in the Assessee Code Master if the assessee code is valid.

• 

  Step 6: A duty / tax will be automatically selected using the Assessee Code, such as Excise Duty or Service tax.

• 

  Step 7: In order to pay excise or service tax, the assessee must click on the button “Select Accounting Codes for Excise” or “Select Accounting Codes for Service Tax” according to the type of duty / tax to be paid.

• 

  Step 8: A single assessee may choose up to six Accounting Codes at a time.

• 

  Step 9: The Assesssee can choose any of the banks that offer internet payment facilities in the NSDL central system once the data has been validated.

• 

  Step 10: The taxpayers will be directed to the net-banking site of the bank selected upon submission of data entered. If the taxpayer confirms the information entered into the screen, the page will appear.

• 

  Step 11: Assessee will enter challan details along with their location code (Commissionerate, Division, Range) when they submit the challan to the bank.

• 

  Step 12: Using the Bank’s username and password for net-banking, the taxpayer will access the bank’s webpage and enter payment information.

• 

  Step 13: An electronic challan counterfoil will be displayed once payment is successful and contains details of the payment, the bank name and the CIN. The counterfoil serves as proof of payment.

• 

  Step 14: Assessee can download the counterfoil from the bank’s website. An electronic acknowledgement will contain all the details that are typically found on a printed copy, such as the Challan Identification Number (CIN) and bank name used to make the e-payment.

• 

  Step 15: The assessee can view the “challan status enquiry” after having paid the service tax electronically at https://onlineservices.cbec-easiest.gov.in/csi/indexl in order to ensure that the e-payment challan has been uploaded / found on the EASIEST (NSDL) website. If you are not able to find challan data on the EASIEST (NSDL) website, please contact easiest@nsdl.co.in

Or Simply You can Automate your Tax payments with Easebuzz Neo.

Eligibility for e-Tax Payment

Wondering if you can ditch the paper challan and pay your taxes online? In most cases, the answer is yes! E-tax payment is available for almost everyone. All you need is a valid PAN card and an internet banking account or debit/credit card with a bank authorized for e-tax payments. So, whether you’re a salaried individual, a freelancer, or a business owner, you can likely ditch the trip to the bank and pay your taxes electronically.

Documents required for paying Income Tax Online

Filing your income tax online can be a breeze, but to ensure a smooth process, there are a few key documents to have on hand. Here’s what you’ll need:

• 

  PAN Card: This is your unique identification number and is mandatory for all taxpayers.

• 

  Aadhaar Card (optional): While not strictly required, linking your Aadhaar with your PAN can simplify the process and avoid delays.

• 

  Form 16 (for salaried individuals): This form provided by your employer details your salary income and deducted tax.

• 

  Form 26AS (Tax Information Statement): This comprehensive statement from the Income Tax Department summarizes your tax information.

• 

  Investment Proofs (if applicable): If you’ve made tax-saving investments, keep proofs like receipts or certificates handy.

Having these documents readily available will streamline your online tax payment process.

FAQ’s

How to pay e-Pay Tax online?

You can pay taxes electronically through the Income Tax Department’s e-filing portal: https://www.incometax.gov.in/iec/foportal/. Here, you can use the “e-Pay Tax” option to make payments using credit card, debit card, net banking, or UPI.

What are the different options of e-payment of tax?

The e-filing portal offers various e-payment options for your convenience:

• 

  Non-Authorised Banks with NEFT/RTGS and Payment Gateway (Bank of Maharashtra, Canara Bank, Federal Bank, State Bank of India, HDFC bank & Kotak Bank offers this facility as of now)

• 

  Credit Card

• 

  Debit Card

• 

  Net Banking (various banks supported)

• 

  UPI (Unified Payments Interface)

How to check e-Pay Tax payment status?

Once you’ve made your e-payment, you can check its status on the e-filing portal. The portal will provide confirmation and a reference number for your record. You can also access your past transaction history for future reference.