E-Payment or Online Payment of tax through the internet facilitates payment of direct taxes online for the taxpayers. To avail of this facility the taxpayer is required to have a net-banking account with any of the Authorized Banks. If you have a bank account and your bank provides the facility of e-payment of income tax, then you can make use of it without incurring any additional charge.
As of now, it is mandatory for corporate to make tax payments (including TDS/TCS) online.
Procedure for e-payment of Income Tax:
What is the procedure for online payment of tax? Follow the below simple steps to pay tax online:-
Step 1 - Log in to NSDL-TIN website (www.tin-nsdl.com) and select the required challan*.
Step 2 - After selecting the required challan*, you will be directed to the screen for entering the following information. Enter the relevant information:
a) PAN for non-TDS payments and TAN for TDS payments
b) Name and address of the taxpayer
c) Assessment Year
d) Major Head Code
e) Minor Head Code
f) Type of payment
g) Select the bank name from the drop down provided
Ø In case of challan no. 280, 282 and 283 the Permanent Account Number (PAN) needs to be entered. In case of challan no. 281 Tax Deduction/Collection Account Number (TAN) needs to be entered.
Ø Please ensure that you enter PAN/TAN correctly, as this is extremely important for further processing. The system will check the validity of PAN/TAN. In case PAN/TAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of online tax.
Step 3 - After entering all the above information, you can re-check, edit and then click the submit button. You will be directed to your bank’s net-banking site.
Step 4 - Your bank will process the transaction online by debiting your bank account and generate a printable acknowledgment indicating the Challan Identification Number (CIN). Your e-payment of tax procedure is now complete.
Important points to note:
- You can verify the status of your challan in the “Challan Status Inquiry” at NSDL-TIN website (www.tin-nsdl.com) using the CIN after a week of making e-payment. Apart from verification at the NSDL website, you can also check your online bank account to verify whether the tax payment is made.
- You can quote your CIN in the counterfoil in your ITR. This is considered to be sufficient proof of payment of tax.
- In case of any issues/problems encountered at the NSDL website while entering data, then you may write to firstname.lastname@example.org. If the issue/problem pertains to entering the details at the net-banking webpage of your bank, then you should contact your bank for assistance.
- In case you have misplaced your challan counterfoil, you can contact your bank and request them for the same.
*How to choose the challan?
TDS Based Payments
- Challan No./ITNS 281 - Tax Deducted at Source for depositing TDS by company or non-company deductee.
Non-TDS Based Payments
- Challan no./ITNS 280 - For depositing Advance tax, Self- Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company and Tax on Distributed income to unit holders.
- Challan no./ITNS 282 - payment of Security Transaction Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax /Other direct taxes & Gift tax) - For depositing Securities transaction tax, Estate duty, Wealth-tax, Gift-tax, Interest-tax, Expenditure/other tax and Hotel Receipt tax.
- Challan no./ITNS 283 - For depositing Banking Cash Transaction Tax and FBT.
Conclusion: This system of e-payment of tax is beneficial as one does not have to personally visit the bank to make the tax payments. The Challan Identification Number (CIN) is received online, which is required by you when you file your return, and payment of tax can be made electronically at the comfort of your home or office.