Income Tax Online Payment – Concept, Eligibility, Payment Process, Benefits & more

Here in this article, you will learn about the different ways of Income Tax online Payment. The article will also cover the benefits of paying tax online and other features.

We will guide you about the steps of paying tax online in detail. In this article, you will also get the details about the documents required for paying online tax.

As everything nowadays is getting digitalized, paying taxes has been also digitalized by the Income Tax Department quite a long time back.

Yes, you can not only file your ITR online but pay the tax due to the department via online methods.

So, let us begin with, the basics of online tax payment and then see the different aspects of the same.

About Income Tax Online Payment

In simple words, online Income tax payment is nothing but payment of income tax using the internet or digital platform.

Since everything is getting digitalized in today’s generation, tax payments have also been digitalized by the IT department for the convenience of the taxpayers.

Though there are still options for physical payment of tax at an authorized bank. However, most people nowadays opt for online payment only.

Thus, it is way more popular than physical payment mode using hard copies of challan and other documents.

Income tax payment is crucial to both the taxpayer and the receiver that is the government. By paying tax online you can save a lot of time and cost is also reduced.

We will discuss all these benefits in detail in the latter part of the article. Now, let us see who is eligible for paying income taxes online.

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Who are Eligible to Pay Income Tax Online?

The online tax payment option is available to all the following taxpayers –

• Citizens of India whose age is below 60 years and earn equal to or more than Rs. 2.5 lakhs in a year
• Similarly, Indian citizens with age above 60 years but less than 80 years and have an annual income of Rs. 3 lakhs or above
• Then if the age of the citizen is 80 years and he or she has a yearly income of Rs. 5 lakhs and above.
• Apart from the individual taxpayers, a firm that falls under the guidelines of Section 44AB can pay tax online. Then any cooperative society, BOI, Juridical Person, AOP, and Local authorities can also pay income tax online.
• If you being an Indian citizen having financial interest or property outside India, then you can pay tax online. Similarly, if you have signing authority of account holding outside of India.
• All companies are eligible to pay taxes online
• If you want to claim tax relief u/s 90 or 90A. Similarly, if you want the deductions under section 91.
• Finally, if you are filing ITR as per section 139 (4B) (ITR 7).

So, under all these circumstances, you can pay income tax online.

However, while the individual taxpayers and others have the option to choose between physical mode of payment and online payment mode, these taxpayers do not have such options –

• All companies need to pay income tax only using an online payment method
• Also, all taxpayers (non-corporate) whose accounts are audited as per section 44AB of the IT Act.

How to Pay Income Tax Online?

If you opt for online payment then you just have to follow the steps below –

• Firstly, you have to visit the website – tin-nsdl.com
• Here you have to login or register
• Then you have to click the services tab on the page. There you will find an options ‘e-payment: pay tax online’. Click on that option
• Next, you have to select the challan no. 280. This is the challan for income tax.
• Once you select the challan, then another page will open where you have to enter the following details –
  • PAN number
  • Year of Assessment
  • Taxpayer’s address
  • Mode of Payment
  • Type of Payment
• Once you enter all the detail correctly, enter the ‘proceed’ button and a web-screen will open for confirmation.
• Recheck all the details and click on the confirm button.
• Once you confirm and submit, you will be redirected to the online banking site of your bank.
• Enter your online banking id and password and payment details and make the payment using the OTP.
• Finally, after the payment is done, you will find an acknowledgment receipt on the screen. It will contain the challan identification number along with the payment and bank details.

Documents Required For Paying Tax Online

For paying income tax online, you would need certain documents which are –

• PAN Details
• Income statement where all your income and expenditures are recorded along with the deductions.
• Form 26AS as proof of taxes being already paid to date
• If you have other incomes from different sources, documents proving the same.

Benefits Of Paying Tax Online

So, now you know how to pay tax online.  However, still, if you are wondering why you would pay income tax online, then here are some benefits which you can enjoy –

• The due date is near and you are not at your place but want to submit the tax? With online tax payments, you do not have to worry about all these. You can pay taxes from anywhere in the world and anytime.
• Even if you pay the taxes at the last moment, there is no late payment or penalties online that you have to pay.
• The personal information is completely secure with the IT Department.
• You get an acknowledgment receipt immediately.
• However, the best advantage of paying taxes online is you can retrieve challan, acknowledgment receipt anytime if you lose the hardcopy.

What is Self-Assessment Tax? Who Should Do It?

For paying taxes online you have to do a self-assessment of your income. Self-assessment tax is nothing but calculating all your net income, then deducting the TDS from the taxable income.

By doing so, you get the amount of tax to be paid. This is known as advance tax payable. You have to use this amount when paying tax online.

However, if the TDS deducted is already more than the advanced tax payable, then you do not have to pay anything.

Supposedly, you do not fall under the taxable income bracket, but your bank has deducted TDS on your interest of bank FD.

In this case, you can claim a refund and not pay anything else. The self-assessment is necessary for those who have income from other sources.

As the income from other sources is not recorded properly, they must do self-assessment and self-declaration and pay the tax if any is due.

How to File ITR after Payment of Tax?

Once you pay the advance tax online, you have to declare the same in the ITR you file. The process of filing ITR remains the same.

You have to fill the Form 26AS, declare your investments (tax-saving schemes) if any after declaring your total income. You also have to make space for the deductions to be included.

On verification, the IT Department will evaluate whether the advance tax paid is equal to the actual tax payable amount or not.

If yes, then you do not need to do anything. You will receive the verification receipt. If the advance tax paid is lower than the actual tax payable, you have to pay the outstanding amount.

If the actual tax payable is lower than the advance tax, then you can claim a refund.

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Income Tax Online Payment – Conclusion

To summaries it all, we can say, digitalization of tax payments has eased the life of taxpayers a lot. They can now pay taxes online from the comfort of the home.

There is no need to stand in the queue of banks to pay the taxes. You can do your self-assessment of income and pay the taxes easily. It is safe and convenient at the same time.

Income Tax Online Payment FAQs

Ques – What to do if there is an error while paying tax online?

Answer: You have to call the TIN customer care center and provide the error details. You can also write to tininfo@nsdl.co.in. in case you face any problem while making payment of your income tax on the NSDL website.

Ques – How much secure online payment portal of the IT Department is?

Answer: It is completely secure. You do not have to worry about the authenticity and security of the NSDL portal and can transact safely.

Ques – Who are Eligible to Pay Income Tax Online?

Answer – The set eligibility to pay the Income Tax are following – citizens below 60 years of age, total income more than 2.5 lakhs per year. Thus, citizens coming in these criteria need to pay their Income Tax.

Ques – How to Pay Income Tax Online?

Answer – In order to pay ones income tax online, they are expected to visit the official website, where the registered users need to login and choose the e-payment option. The taxpayers are supposed to choose the challan no. 280, which is the income tax challan, after which they just need to submit identity details such as PAN card and year of assessment and pay their Income Tax.

Ques – What is Self-Assessment Tax? Who Should Do It?

Answer – In order to pay one’s tax online they have to run a self assessment to calculate the tax for that year. One can do self assessment by calculating the net income and then deducting the TDS from the income that is taxable.

Ques – How to File ITR after Payment of Tax?

Answer – The Income Tax Return is filed when the advanced tax amount is higher than the actual tax amount. When such situation arise individual’s are expected to fill the form 26AS and go through the verification process of the same.

Ques – Can I pay my income tax at my bank?

Answer – Taxpayers have the luxury to either pay their Income Tax online or offline. The offline facility can be taken in sue by visiting the designated bank branch and filling up the challan number 280.

Ques – How can I pay my income tax online with my debit card?

Answer – You can pay your Income Tax online through your debit card, the procedure for which is very simple. Taxpayers are expected to visit the official Income Tax website and login to their account, it must be noted that the selected challan for Income Tax should be 280, after which the individual is expected to enter their PAN number and choose the mode of payment.

Ques – Can I pay my tax bill by Cheque?

Answer – Yes, one can absolutely pay their tax bill through check. The required procedure is to visit a relevant bank and submit the challan no. 280; you can either pay the tax in cash or in cheque.

Ques – Can I pay my taxes through online banking?

Answer – Given the modern technology everything has now become online. The taxpayers are given an official website by the IT department to have a quick, easy and safe route to pay one’s taxes. Taxpayers are only supposed to login in their account and submit their credentials, and proceed under challan 280 and make the tax payment.

Ques – Can income tax be paid with credit card?

Answer – Yes, the taxpayers are given a choice to select their preferred mode of payment, they can either use credit or debit card.

Ques – What are the benefits Of Paying Tax Online?

Answer – Online tax payment gives an individual the luxury to pay their taxes anytime anywhere with just a simple click keeping the safety of the user intact.

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