The process of making income tax payment online is called e-payment of income tax. Every Indian income tax assessee who files an income tax return and has a liability to pay taxes can avail of this facility to pay taxes online, if he has a net-banking account with any of the Authorized Banks (i.e. banks authorized by the Income Tax Department).
E-payment of taxes is mandatory for the following types of assesses in India, with effect from April 1,2008. It is also mandatory for such assessees to make the TDS payment online.
- All corporate assesses
- All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 apply.
However, any other assessee can also make online tax payment, if he has a bank account with net-banking facility and such Indian bank is authorized to provide the income tax online payment facility in India (e-payment).
The following banks in India are authorized for this purpose.
- Allahabad Bank
- Andhra Bank
- Axis Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Corporation Bank
- Dena Bank
- HDFC Bank
- ICICI Bank
- IDBI Bank
- Indian Bank
- Indian Overseas Bank
- Jammu & Kashmir Bank
- Oriental Bank of Commerce
- Punjab National Bank
- State Bank of Bikaner & Jaipur
- State Bank of Hyderabad
- State Bank of India
- State Bank of Indore
- State Bank of Mysore
- State Bank of Patiala
- State Bank of Travancore
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
In case the tax payer’s bank does not have an online payment facility or is not an authorized bank then he or she can make electronic payment of tax from the account of any other person who has an account with any of the above authorized banks. However, the challan for making such payment must clearly indicate your Permanent Account Number (PAN).
How to pay income tax online?
The following are the steps to pay the tax online.
- Go to www.tin-nsdl.com (NSDL-TIN website)
- Select the appropriate challan. For example, “CHALLAN NO./ITNS 280” is for payment of Income tax & Corporation Tax
- After selecting the challan, you will be taken to another page for entering the following data.
- a) PAN for non-TDS payments and TAN for TDS payments. You must ensure that you enter the PAN or TAN correctly, as this is an important identifier and hence it is extremely important for further processing. The system will check the validity of PAN or TAN before letting you to make the payment. In case the number is not available in the database of the Income Tax Department, then you cannot proceed with the online payment. Hence it is important for you to obtain a pan card.You can either fill and submit an online pan card application or download and print a pan application form and then submit it offline. After submitting the application, you may have to wait for a few days before you receive the PAN card. It is also possible to track the pan card status online
- b) Name and address of the taxpayer
- c) Assessment Year
- d) Major Head Code
- e) Minor Head Code
- f) Type of payment
- g) Name of the Bank
- After entering all the above detail, click on “PROCEED” button. “TIN system” will display the content as entered, along with the “Name” appearing in the IT department’s database against the PAN or TAN.
- You can verify the entered details before you confirm the payment. If there are any mistakes, click on “EDIT” and correct the relevant information. After verifying the data, click on “SUBMIT” button. You will then be taken to the bank’s payment gateway.
Next, log on to the bank account and make the tax payment.
Your bank will process the online transaction by debiting your account and generate a printable acknowledgment with a Challan Identification Number (CIN). This is useful to verify the status of the challan under “Challan Status Inquiry” at NSDL-TIN website, a week after making the payment.
Challan Identification Number (CIN) will also be considered to a valid proof for the tax payment and ou must quote this number in your Income Tax return.
If you encounter any problem on the NSDL website, while entering non-financial data then you may contact the TIN Call Center at 022-24994650 or write to them at email@example.com. If you encounter any problem, while entering the financial details in your bank’s payment gateway, then you may contact your bank for assistance.
Make Indian Income tax payment online, wherever you are.