Paying income tax is an essential responsibility for every taxpayer. Fortunately, the process has become much more convenient with the introduction of online tax payment options. In this comprehensive guide, we will walk you through the step-by-step process of paying your income tax online via the Income Tax Portal. By following these instructions, you can avoid the hassle of long queues and save time by making your tax payment at your convenience.
To begin the process, visit the Income Tax Portal and locate the 'Quick Links' section on the left side of the homepage. Within this section, click on the 'e-Pay Tax' option. If you cannot find it, you can also use the search bar to locate the 'e-Pay Tax' section.
Once you have accessed the 'e-Pay Tax' section, enter your PAN (Permanent Account Number) and re-enter it to confirm. Provide your mobile number and click 'Continue'. You will receive a 6-digit OTP (One-Time Password) on your mobile number. Enter this OTP and click 'Continue' to proceed to the next step.
You will receive a 6-digit OTP (One-Time Password) on your mobile number. Enter this OTP and click 'Continue' to proceed to the next step.
In this section, you will need to enter the accurate payment amounts under the relevant categories. To ensure the correct figures, you can refer to the pre-filled challan on The Tax Heaven or consult your financial records. Take your time to carefully input the payment amounts to avoid any errors.
Once you have entered the tax payment details, it's time to select the payment method. You can choose from various options such as internet banking, debit card, credit card, RTGS/NEFT, UPI, or paying at the bank counter. Select the payment method that is most convenient for you, and choose the bank through which you want to make the payment. Then, click 'Continue' to proceed.
After selecting the payment method and bank, you will have the opportunity to review the payment information before finalizing the transaction. Take a moment to verify that all the details are accurate and correctly entered. If everything looks good, click 'Pay Now' to initiate the payment. If you need to make any changes or corrections, click 'Edit' to modify the details accordingly.
Once you have reviewed and confirmed the payment information, you will need to agree to the Terms and Conditions by ticking the checkbox. After that, click 'Submit To Bank' to proceed with the payment. This will redirect you to the selected bank's payment gateway, where you will need to follow the instructions provided to complete the transaction securely.
Upon successful submission of your tax payment, you will receive a confirmation message indicating that the payment has been processed. It is essential to keep a record of this confirmation for future reference. Remember to download the challan, as you will need the BSR code and Challan number for completing the return filing process.
After making the tax payment, update the payment information on
Benefits of e-Tax Payment
The introduction of electronic tax payment options has made the process more convenient and user-friendly. Here are some of the benefits of e-Payments:
Eligibility for e-Tax Payment
As of 1st April 2008, the following taxpayers are required to pay taxes online:
Before submitting your income tax return, it is essential to ensure that you have paid your tax dues in full. In some cases, you may see a tax payable amount at the time of filing your return. This is known as Self-Assessment Tax, which can be paid online to facilitate successful e-filing. If you are paying tax after 31st March, it is also necessary to pay the interest under sections 234B and 234C along with your tax dues. When using The Tax Heaven for e-filing, the system will automatically calculate the amount of tax you need to pay for filing your return accurately. You can also seek assistance from a Chartered Accountant (CA) to ensure the correct amount is paid.
If your annual tax dues exceed Rs. 10,000, you are required to pay income tax in advance. This is particularly applicable in the following situations:
Calculating and Paying Advance Tax
To calculate your advance tax liability, add up your income from various sources, including salary, interest, capital gains, and other earnings. If you are a freelancer, estimate your annual income from all clients and deduct any relevant expenses. Once you have determined your taxable income, apply the latest income tax slab rates to calculate your income tax due. Deduct any TDS amounts that may have been deducted from your total tax due. To facilitate online payment, you can use the Income Tax Portal's online payment facility or consult a CA for assistance in calculating and paying your advance tax liability.
Due Dates for Payment of Advance Tax for FY 2022-23
To ensure timely payment of advance tax, the following due dates must be adhered to:
Non-payment of advance tax within the specified due dates can result in the levy of penal interest under sections 234B and 234C of the Income Tax Act.
Outstanding Demand Payment
In certain cases, you may receive an income tax demand notice from the assessing officer. If you agree with the assessment and are ready to pay the outstanding tax amount, you can make the payment online. This is known as the tax on regular assessment. It is important to comply with the demand notice and make the necessary payment to avoid any penalties or legal consequences.
Frequently Asked Questions
Paying income tax online has become a convenient and time-saving option for taxpayers. By following the step-by-step guide provided in this article, you can easily navigate the Income Tax Portal and make your tax payment without any hassle. Remember to keep a record of your payment confirmation and update the payment information on The Tax Heaven for smooth filing and verification of your return. Whether you are paying self-assessment tax, advance tax, or clearing an outstanding demand, online tax payment provides a secure and efficient solution for fulfilling your tax obligations.
An Income Tax Challan is a form used for making payments towards income tax liabilities to the government. It contains details such as the taxpayer's name, PAN (Permanent Account Number), assessment year, type of payment, and the amount to be paid.
You can pay your income tax online through various methods such as internet banking, debit card, credit card, or through the government's online tax payment portals.
To pay income tax online using internet banking, you need to log in to your bank's internet banking portal, navigate to the tax payment section, select the relevant tax type (e.g., income tax), fill in the required details, and authorize the payment.
Yes, you can use your debit card or credit card to pay income tax online through the government's online tax payment portals or authorized bank portals.
To pay income tax using a debit card or credit card, visit the government's online tax payment portal, select the relevant tax type, fill in the required details, choose the payment option as debit card or credit card, and complete the transaction by providing card details and OTP (One-Time Password).