With the evolving technology and Digital India Movement, the income tax department has shifted its analog tax payment system to digital. Through the e payment system, individuals can pay their taxes online using savings and current accounts.
What do you need to pay your taxes online?
To pay your taxes online, one must have:
- A bank account with tax payment authorisation
- Internet banking facilities
What is the process of e tax payment?
- Login to http://www.tin-nsdl.com. Go to Services > e-payment: Pay taxes online or click on the ‘e-pay taxes’ tab on the website
- Select the relevant challan: ITNS 280, ITNS 280, ITNS 282, ITNS 283, ITNS 284, or Form 26 QB demand payment.
- Enter PAN/ TAN and other mandatory challan details like accounting head under which payment is made, address of the taxpayer, the bank through for payment, etc. and submit.
- If PAN/ TAN is valid as per the ITD PAN/ TAN master, the taxpayer’s full name as per the master is displayed on the confirmation screen.
- On confirmation of the data, the taxpayer will be directed to the net-banking site of the bank.
- The taxpayer must log in to the net banking website using the credentials – user ID and password provided by the bank for net banking purposes and enter the payment details at the bank’s site.
- On successful payment, a challan counterfoil containing CIN (Corporate Identification Number), payment details, and bank name through which e-payment has been made will be displayed.
Who can pay tax online?
An individual needs to meet the eligibility criteria listed per the Income Tax Act:
- You must be a resident of India with an annual income of 2.5 lakhs or more.
- If you are over 60 and 80 years, your annual income should be more than three lakhs and five lakhs, respectively.
- Have a firm which falls under guidelines of section 44AB or a co-operative society, BOI (Body of Individual), AOP (Association of Persons), artificial juridical person, and local authority (ITR 5)
- A resident Indian having property or financial interest in an entity or has signing authority of any account held outside the country.
- If one claims tax relief under sections 90 and 90A or claimed deductions as per Section 91.
- If individual is an assessor responsible for producing returns under Section 139 (4B) (ITR 7).
- Any company or companies.
List of banks eligible for e tax payment
| 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 Limited | Indian Bank |
| Indian Overseas Bank | Jammu and Kashmir Bank |
| Oriental Bank of Commerce | Punjab National Bank |
| State Bank of Bikaner and Jaipur | State Bank of Hyderabad |
| State Bank of India | 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 |
What are the advantages of e tax payment?
The benefits of online tax payment are:
- Instant fund transfer for bank accounts.
- You can pay taxes from anywhere 24×7 using internet banking.
- Transaction ID of the payment will be available on the bank account.
- Transparency between the taxpayer and tax department.
- You can track your tax payment on the tax department website.