How to pay income tax online?

In order to learn “How to pay income tax online”, let's see what income tax means. Income Tax is the tax levied on the annual income of the individual in a financial year. Initially, taxpayers were required to physically go and file for Income tax returns (ITR). But, along with advancements in technology and the world moving online for every little thing, from buying groceries to buying a house, income tax payment has also moved online.

Before, the income tax payment facility was provided by OLTAS- Online Tax Accounting System. Now, the facility has been migrated to e-Pay Tax on the e-filing portal. It must be noted that Challan 280 is not necessary anymore.

Things you should know before paying Income tax

Make sure to check that the eligibility required and all the documents required are available with you. This will help eliminate any last-minute disruptions and will allow you to go through with the procedure of filing Income tax returns hassle-free.

You can calculate your payable tax using Income and Tax Calculator available on the Income tax department's official website.

Knowing these beforehand with help smooth the process of paying income tax, and will save time.

Who is eligible to pay Income Tax?

As per the Income Tax Act 1961, an individual is liable to pay income tax, given that he ticks the boxes of the following criteria:

1. You are an Indian citizen whose annual income exceeds the exemption limit as given in Section 80C of the Income Tax Act.
2. Firm
3. Cooperative Society
4. Local Authority
5. Artificial Judicial Person
6. Indian Resident who owns a property or financial interest outside India
7. You claim deductions under 90, 90A, 91 of the Income tax act.
8. Companies
9. Association of individuals
10. Body of persons
11. Indian resident with ownership of an account outside India
12. You are a corporate employee
13. Provisions given in Section 44AB of the Income tax act 1961, if it applies to you

Before you understand how to pay income tax online, the prerequisite is to know the documents required to pay income tax online. Knowing the documents required in the procedure will help you save time and avoid last-minute disruptions.

Documents required to pay income tax online:

• 1. Aadhar Card
• 2. Pan Card
• 3. Bank Account details
• 4. Bank passbook/statement
• 5. Form 16 A/B/C
• 6. Form 26AS and AIS/TIS
• 7. The documents that you will need to claim deductions include home loan statements, tax saving schemes, life insurance premium payment receipts, etc.

How to pay Income Tax online?

Paying income tax online is a very simple procedure and hassle-free procedure. In just a few minutes and click of a few buttons, you can go through with the payment of income tax and filing income tax returns.

Steps to pay income tax online are as follows-

• 1. On any web browser, open the Income Tax portal
• 2. Navigate to the Quick Links section
• 3. Tap on e-Pay Tax
• 4. There will appear a blank space to enter your PAN details.
• 5. Feed the PAN/TAN number and enter the mobile number
• 6. Tap on Continue
• 7. Enter the OTP you received on your number onto the screen
• 8. Tap on Continue
• 9. Choose the Assessment year and Self Assessment Tax(300) which will be under the Type of Payment option
• 10. Enter the Tax details
• 11. Select your desired payment method
• 12. Tap on Continue
• 13. Review all the details of the Challan
• 14. Tap on Pay now
• 15. Tick the box to agree with the terms and conditions
• 16. Tap on Submit to bank
• 17. Complete the payment
• 18. Download the challan for future reference

Which Banks are authorised for e-Tax payment:

Given below is a revised list of Banks that can be found on the e-filing portal for e-Tax payment:

• 1. Axis Bank
• 2. Bank of Baroda
• 3. Bank of India
• 4. Bank of Maharashtra
• 5. Canara Bank
• 6. Central Bank of India
• 7. City Union Bank
• 8. Federal Bank
• 9. HDFC Bank
• 10. ICICI Bank
• 11. IDBI Bank
• 12. Indian Bank
• 13. Indian Overseas Bank
• 14. IndusInd Bank
• 15. Karur Vysya Bank
• 16. Kotak Mahindra Bank
• 17. Punjab National Bank
• 18. RBL Bank
• 19. State Bank of India
• 20. UCO Bank
• 21. Union Bank of India

Benefits of paying e-Tax

• 1. Simplified the process as less paperwork is involved.
• 2. Since the whole process is online, you can file Income Tax Returns from anywhere, anytime.
• 3. There is no third party involved in the payment of e-tax, making the process safer and reducing risks.
• 4. Direct deduction of the amount from your bank account
• 5. You can calculate your income tax using the income tax calculator on the Income Tax Department website.
• 6. When you pay income tax online, you receive a confirmation message instantly.
• 7. Your challan is instantly generated through this simple process of e-Tax payment.
• 8. Security of your data is guaranteed by the Income Tax Department

What happens when the Income Tax is paid?

When the Income Tax is successfully paid using the online method, it will automatically and instantly be reflected against your PAN. You can check the successful payment of Tax via AIS/Form 26AS.

Payment of Income tax is inevitable. As the world is taking giant steps towards technological advancement, taxpayers are constantly searching for answers to the question, “How to pay Income Tax online”. At PensionBox, you can get answers to such questions and make your life a little easier.