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Income Tax Online Payment - Step by Step Guide

  • 3 min read

  • Highlights

  • Pay taxes online via the official tax filing website

  • Tax payments can be made through Net Banking or debit card

  • The online tax payment process is quick, simple and secure

  • Paying taxes on time makes you eligible for Home Loans

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:

  • Login to the official government income tax efiling 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.

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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

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 through 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 refund / 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.3.5 crore, a flexible 30-month 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 customised terms.

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