2 min read
25 May 2021

According to the Income Tax Act, you are liable to pay income tax if your annual income exceeds a certain threshold. You are taxed based on the income tax slab you fall under and at the income tax rates applicable to the same. While you can make your income tax payment at a designated bank near you, you can also choose the electronic route to save time. Further, in case the provisions of Section 44AB apply to you, you are required to make your tax payment online. Nonetheless, making an online tax payment is preferred, as doing so gives the Government immediate access to funds and allows you to pay your dues from the comfort of your home or workplace.

Read on to know how to make income tax online payment and the benefits associated with doing so.

Step-by-Step Procedure to Carry Out the Income Tax Online Payment

You can make an income tax payment online by following these simple steps:

  • Log in to the official government income tax filing website
  • Click on the ‘e-Pay Tax | Challans’ and when the disclaimer pop-up appears, hit ‘Confirm’
  • You will be directed to a page with challans, relevant for different types of tax payments
  • Select Challan No/ITNS-280 and proceed to fill in details
  • Start by selecting the ‘0021’, the code for Income Tax
  • Then, fill in your PAN number, name, address, contact details and select the correct Assessment Year
  • Once done, tick on the relevant type of payment. You can choose ‘100’ to make an Advance Tax payment, ‘300’ for Self- Assessment Tax, and ‘400’ for Regular Assessment Tax
  • The next step is to select the mode of payment
  • After doing so, enter the captcha code displayed on the screen and click on  ‘proceed’
  • You will be directed to a page containing all the details provided by you. Upon cross-checking the same, click on ‘confirm’
  • You will then receive a receipt of the tax payment processed, Challan 280, containing the BSR code and a serial number. You need to produce the BSR code at the time of income tax filing

Note: To fill the form you must use the utility program provided, which you can download when you reach the page containing a list of challans.

Eligibility for Online Tax Payment

Anyone who wants to make a tax payment can do so online. However, online tax payments are mandatory for:

  • Individuals subject to the provisions of Section 44AB
  • Companies

Different Modes of Online Tax Payment

You can make an income tax payment online either via

  • Net Banking
  • Debit Card

Documents required for paying income tax online

To pay income tax online, you typically need the following documents:

  1. Permanent Account Number (PAN): Essential for tax identification.
  2. Form 16/16A: Issued by employers or deductors showing TDS details.
  3. Bank account details: For online payment transactions.
  4. Challan 280: If paying advance tax or self-assessment tax.
  5. Aadhaar card: For linking with PAN (as per current regulations).
  6. Digital signature: Required for e-filing of returns in certain cases.

These documents ensure compliance and smooth processing of income tax payments through online channels.

Benefits of Carrying Out an Online Tax Payment

Making your income tax payment online allows you to enjoy a range of benefits.

  • You can choose a payment mode that is convenient to you and carry out the payment from any location, and at any time
  • Online tax payment involves a quick process and funds are instantly transferred to the Government. In case of physical modes of payment, the processing times are greater, at least one day
  • The online mode ensures that the details entered in the challan are directly provided to the Income Tax Department, without any third-party involvement, making the entire process secure
  • You can track the status of your online tax payment easily
  • You can access your BSR code, even though your Net Banking account
  • The BSR code in turn is useful when filing Income Tax Returns, and thus, is useful in initiating an income tax rebate
  • You get a copy of the payment receipt from your bank as soon as the payment is processed
  • You can save the payment receipt and challan copy in a digital format. The transaction ID of your online tax payment will be mentioned on your bank account statement and you can use this for future reference

Knowing about the electronic provisions available to you, such as how to make an online tax payment or how to track your income tax refund status greatly aid tax planning. Further, by paying taxes and filing Income Tax Returns well before the deadline, you indicate to financial institutions that you are disciplined and responsible. This can help you secure good deals in the future on offerings such as the Bajaj Finserv Home Loan. This offering gives you access to funding of up to Rs. 15 crore*, a flexible 40 years tenor, and features such as zero pre-payment charges, while also allowing you to claim tax deductions under Sections 80C and 24B of the Income Tax.

So, going forward, make use of the online tax payment provision to manage clear your dues speedily and check your pre-approved offer to gain instant access to a home loan, on customized terms.

Things you should know when filing online taxes

When filing taxes online, it's crucial to be aware of a few key points:

  1. Documents needed: Gather essential documents like Form 16, bank statements, and investment proofs.
  2. Tax deductions: Understand eligible deductions under sections like 80C, 80D, and 80G.
  3. Filing deadlines: Be aware of due dates for filing returns and paying taxes to avoid penalties.
  4. Electronic verification: Use Aadhaar OTP or digital signature for e-verification.
  5. Tax refunds: Track refund status after filing to ensure timely processing.
  6. Professional assistance: Consider seeking help from tax experts for complex filings or queries.

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Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

Is it possible to make a partial tax payment?

Yes, in certain situations, you can make a partial tax payment. However, interest and penalties may be levied on the unpaid amount depending on the terms of your tax jurisdiction.

Is it mandatory to pay tax online?

No, it's not mandatory to pay tax online. You can still pay tax offline. However, online tax payment is usually more convenient and quicker.

Can I pay income tax online for someone else?

Yes, you can pay income tax online for someone else. You would just need their tax details to make the payment.

Can we pay tax online after the due date?

Yes, you can pay tax online after the due date but it would likely attract interests and penalties for late payment as per tax rules.

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