How to Pay Income Tax Online in India: Income Tax Challan

How to Pay Income Tax Online in India: Income Tax Challan

Dreading the confusion of filling out lengthy income tax forms and waiting in endless queues to make payments? Well, fret no more! The income tax department has now introduced a state-of-the-art e-Pay Tax system that allows you to seamlessly pay all your taxes online from the comfort of your home.

In this quick yet comprehensive guide, you will learn how even a tax-filing novice can easily navigate the user-friendly income tax portal and conveniently pay their self-assessment tax, advance tax, TDS or outstanding demand in just a few simple steps.

I will walk you through the re-imagined digital tax payment process – from getting oriented with the revamped e-Pay Tax section to correctly submitting your payment on the portal and receiving instant confirmation. Read along to save yourself hours of agony this tax-filing season and join millions of Indians who have already embraced online income tax payment by equipping yourself with this e-Pay Tax know-how.

So, without further ado, let me provide you a sneak peek of the income tax department’s efficiency-focused e-governance initiative that makes compliance easier for taxpayers like you and also improves transparency.

Navigating the Income Tax Portal for e-Pay Tax

The first step to pay your income tax online is simply locating the e-Pay Tax link on the Income Tax Department’s portal (www.incometax.gov.in). While this may sound straightforward, the portal contains so much information that the specific link you need can easily get lost in the clutter.

Follow our guide below to easily find the e-Pay Tax link:

Step 1: Visit www.incometax.gov.in

Step 2: On the homepage, scroll down until you see the “Quick Links” section on the left sidebar

Step 3: Under the Quick Links section, click on the link labelled “e-Pay Tax”

Alternatively, you can simply use the search bar at the top of the homepage to directly search for “e-Pay Tax”.

Once you click the e-Pay Tax link, you will be redirected to the e-Pay Tax payment page.

Note: Make sure you carefully enter the URL https://onlineservices.tin.egov-nsdl.com in your browser to access the genuine e-Pay Tax facility. Avoid using public access systems or cyber cafes to pay your taxes in order to prevent misuse of your financial data.

The next step in the process is entering your Permanent Account Number (PAN) along with your registered mobile number and email ID. Your PAN number ensures correct linking of your tax payment to your income tax account with the IT Department.

Filling in Payment Details

After entering your PAN and personal details on the e-Pay Tax portal, you will need to fill in the exact amounts to be paid under different tax categories.

Follow these steps for accurately filling in the tax payment screen:

Step 1: Select Financial Year & Payment Type

  • Under the ‘Type of Payment’ drop down, choose ‘Income Tax’
  • Next, select the relevant ‘Assessment Year’ (which is the financial year following the payment year)
  • Lastly, select payment type as ‘Advance Tax’ or ‘Self Assessment Tax’

Step 2: Enter Amounts Under Each Tax Category

  • The system provides various tax categories like tax, interest, fees etc.
  • For self-assessment tax, fill tax amount under section 300A
  • For advance tax, fill amounts under section 100
  • Refer to your income tax calculator or automated prefilled challan for exact amounts

Step 3: Account for Any Previous Tax Credits

  • If you already have partial tax credits for advance tax paid or TDS deducted, account for that under the ‘Amount claimed to be deducted/collected’ column. The system will automatically calculate the final amounts due.

Step 4: Verify Total Tax Amount Due

  • Preview and verify if the total tax amount shown on the final screen tallies with your own calculation.
  • You can go back and edit any amounts entered if needed.

Filling out all details accurately is crucial to ensure your payment reaches and credits the right sections. Still unsure about calculations? Our expert Chartered Accountants at Filingwala.com can provide full income tax calculation support and help you determine precise tax liability.

Completing the Tax Payment

Once you have carefully filled out all the income tax payment details on the e-Pay Tax portal, the last step is to actually make the payment and get confirmation.

Follow these simple steps:

Step 1: Select Payment Mode

  • On the payments page, choose your preferred payment method – netbanking, UPI, debit card, credit card, prepaid wallet, RTGS/NEFT etc.
  • For convenience, internet banking or UPI payments are recommended

Step 2: Make Payment & Get Confirmation

  • If using netbanking, it will automatically open your bank’s payment page after submission
  • Complete the bank payment formalities for successful tax payment
  • On successful payment, you will get an instant payment confirmation message along with a challan reference number

Step 3: Download or Print Confirmation

  • Be sure to save a copy of the payment confirmation challan for income tax filing and future reference
  • The challan has your unique BSR code and challan number which may be required later

And you’re all set! With these simple 7-8 steps, you can pay your advance tax or self-assessment tax online without any hassles or worries, directly on the official Income Tax Portal.

Stay tuned for our next sections where we decode those tricky tax terms for you and answer all your other income tax payment FAQs. You’ll be a tax payment expert in no time!

Understanding Key Tax Concepts

Paying income tax often involves navigating tricky terminology that can confuse taxpayers. In this section, we’ll clearly explain key tax concepts for you:

Self-Assessment Tax

  • Tax paid voluntarily at the time of filing returns if tax due exceeds TDS or advance tax paid
  • Needed to successfully submit ITR without interest or penalty
  • Paid under section 140A using challan 280
  • Includes tax plus interest under sections 234A, 234B and 234C

Advance Tax

  • System of paying taxes on estimated income in the current financial year
  • Applicable if tax liability exceeds Rs 10,000
  • Paid in installments – 15th June, September, December and March
  • Non payment attracts interest under sections 234B and 234C

Tax Deducted at Source (TDS)

  • Tax deducted in advance by employer on salary income or by banks on interest income
  • Deducted at prescribed rates from total payment
  • Already collected tax, so adjusted against final tax liability

Outstanding Tax Demand

  • Additional tax liability arising due to underreporting of income or as per assessment
  • Pay such demands under challan 280 to close outstanding dues
  • Failure to pay demands raised results in penalties or prosecution

So in a nutshell, advance tax and self-assessment tax helps close the gap between taxes already paid via TDS deductions and your final tax liability determined at the time of filing ITR.

Confused between all the different sections and interest implications? Our tax experts at Filingwala.com can help identify your exact tax liability down to the last rupee and ensure optimized, headache-free tax payment and filing!

Updating Tax Payment Status for Return Filing

You may have successfully paid your advance tax or self-assessment tax online. But don’t forget the crucial last step to link it with your income tax returns before filing!

Follow the steps below to complete this linkage:

Step 1: Log in to the e-filing portal using your credentials

Step 2: Go to ‘My Account’ → ‘My Tax Credits (Form 26AS)’

Step 3: Click on ‘View Tax Credit’ to open your tax credit statement

Step 4: Check if the recent tax payment entry along with relevant amounts has updated here

Step 5: If yes, it means the tax payment linkage is updated at the IT Department’s end

Alternately, you can also manually link the tax payment details by submitting the tax challan details under the ‘Taxes Paid and Verification’ section while e-filing your ITR.

However, we recommended getting your returns prepared and e-filed by experts like Filingwala.com for 100% accurate, end-to-end management of the entire process.

So what are you waiting for? Pay your taxes conveniently online using our DIY guide and connect with Filingwala.com experts to optimize, file, and verify your income tax returns stress-free!

Frequently Asked Questions

We get a lot of recurring doubts and questions from taxpayers on how to correctly pay income tax online. We’ve compiled some helpful responses below to address these queries:

Q: Do I have to compulsorily pay taxes electronically online?

A: E-payment of taxes is mandatory only for companies and taxpayers that need to get accounts audited under Section 44AB. However, the online method is recommended for all taxpayers as it more convenient and enables real-time updates.

Q: What all tax payments can be done electronically?

A: Almost all types of taxes can now be paid online via the e-Pay Tax facility including advance tax, self assessment tax, TDS, TCS, Equalisation levy and more.

Q: What documents do I need to make e-payment?

A: You primarily need two documents – your PAN card to link the tax to your income tax account and authorized internet banking activated on your linked bank account to actually make the payment.

Q: I selected the wrong assessment year when paying tax. What should I do?

A: Even if you have selected the wrong AY, go ahead and file your returns normally. Later you can request your assessing officer via rectification request u/s 154 to correct the error in your returns and related challans.

We hope these answers help resolve some of your common doubts. Need more personalized assistance? Our tax experts at Filingwala.com are here to help with your unique queries and even complete handling of tax payment and return filing!

Paying Income Tax Made Simple

While paying income tax may seem complex and confusing, the online e-Pay Tax facility has made the process much easier for taxpayers. With just your PAN and basic details, you can pay self-assessment tax, advance tax, and settle outstanding demands directly on the Income Tax Portal.

We hope this comprehensive, step-by-step guide helped demystify the entire process for stress-free online income tax payment. Whether you have to pay interest, calculate advance tax or file returns – our expert Chartered Accountants at Filingwala.com can handle everything end-to-end for maximum refunds and minimum headaches!

So why struggle with complex tax calculations and filings on your own? Leave it to the experts with just a few clicks. Focus on growing your income – and let us manage the taxes! Visit Filingwala.com or call us right away to get started.

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