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e tax payment: Everything you need to know

[ecis2016.org] Check out the procedure for e tax payment and related information, including the benefits of e-tax payment and eligibility criteria for tax payment mentioned in the Income Tax Act.

With the evolving technology and Digital India Movement, the income tax department has shifted its analog tax payment system to digital. Through the e payment system, individuals can pay their taxes online using savings and current accounts.

What do you need to pay your taxes online?

To pay your taxes online, one must have: 

  • A bank account with tax payment authorisation
  • Internet banking facilities 

What is the process of e tax payment?

  • Login to http://www.tin-nsdl.com. Go to Services > e-payment: Pay taxes online or click on the ‘e-pay taxes’ tab on the website

e tax 1

  • Select the relevant challan: ITNS 280, ITNS 280, ITNS 282, ITNS 283, ITNS 284, or Form 26 QB demand payment.

e tax 2

  • Enter PAN/ TAN and other mandatory challan details like accounting head under which payment is made, address of the taxpayer, the bank through for payment, etc. and submit.
  • If PAN/ TAN is valid as per the ITD PAN/ TAN master, the taxpayer’s full name as per the master is displayed on the confirmation screen.
  • On confirmation of the data, the taxpayer will be directed to the net-banking site of the bank.
  • The taxpayer must log in to the net banking website using the credentials – user ID and password provided by the bank for net banking purposes and enter the payment details at the bank’s site.
  • On successful payment, a challan counterfoil containing CIN (Corporate Identification Number), payment details, and bank name through which e-payment has been made will be displayed. 

Who can pay tax online?

An individual needs to meet the eligibility criteria listed per the Income Tax Act:

  1. You must be a resident of India with an annual income of 2.5 lakhs or more.
  2. If you are over 60 and 80 years, your annual income should be more than three lakhs and five lakhs, respectively.
  3. Have a firm which falls under guidelines of section 44AB or a co-operative society, BOI (Body of Individual), AOP (Association of Persons), artificial juridical person, and local authority (ITR 5)
  4. A resident Indian having property or financial interest in an entity or has signing authority of any account held outside the country.
  5. If one claims tax relief under sections 90 and 90A or claimed deductions as per Section 91.
  6. If individual is an assessor responsible for producing returns under Section 139 (4B) (ITR 7).
  7. Any company or companies.

List of banks eligible for e tax payment

Allahabad Bank Andhra Bank
Axis Bank Bank of Baroda
Bank of India Bank of Maharashtra
Canara Bank Central Bank of India
Corporation Bank  Dena Bank
HDFC Bank ICICI Bank
IDBI Bank Limited Indian Bank
Indian Overseas Bank Jammu and Kashmir Bank
Oriental Bank of Commerce Punjab National Bank
State Bank of Bikaner and Jaipur State Bank of Hyderabad
State Bank of India State Bank of Mysore
State Bank of Patiala  State Bank of Travancore
Syndicate Bank UCO Bank
Union Bank of India United Bank of India
Vijaya Bank

What are the advantages of e tax payment?

The benefits of online tax payment are:

  • Instant fund transfer for bank accounts.
  • You can pay taxes from anywhere 24×7 using internet banking.
  • Transaction ID of the payment will be available on the bank account.
  • Transparency between the taxpayer and tax department.
  • You can track your tax payment on the tax department website.

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Debora Berti

Università degli Studi di Firenze, IT

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