Online Income Tax Payment

Online Income Tax Payment – Procedure

Online Income Tax Payment – Procedure

Income tax payment can be made online or manually by furnishing the hard copy of the challan at the designated bank. With the development of technology, the Government has also upgraded itself and introduced e-payment facility for income tax. In this article, we look at the procedure for online payment of income tax payment.

Mandatory Online Payment

Private limited company, one person company and limited company are mandatorily required to pay tax using internet banking facility. Further, taxpayers other than company who are liable to get their accounts audited as per section 44AB are also required to mandatorily pay income tax online.

Online income tax payment is mandatory for all companies and all non-corporate taxpayers covered by audit under section 44AB. However, a person not covered in the mandatory category can voluntarily pay income tax by using the e-payment mode.

Income Taxes That Can be Paid Online

Taxes that can be paid online through internet banking facilities are: 

  1. Income-tax
  2. Corporate tax (i.e., income-tax paid by a company)
  3. Tax deducted at source (TDS)
  4. Tax collected at source (TCS)
  5. Securities Transaction Tax (STT)
  6. Wealth-tax and other direct taxes like gift tax, expenditure tax, etc

Online Income Tax Payment Procedure

To make income tax payment online, a net banking enabled account in an authorised bank is required. If the taxpayer does not have a net banking enabled account in his/her name, then payment can be made through some other persons account, but the tax should be paid in the assesses name.

Online Income Tax Payment
Online Income Tax Payment

Step by Step Guide to Online Tax Payment

  1. Visit www.tin-nsdl.com or the online tax e-payment website.
  2. Open the respective chalan based on the payment type.
  3. After selecting the correct challan, the screen for providing details will be displayed, the taxpayer should provide the correct details in the challan.
  4. After providing all the requisite details correctly along with the correct Codes, the taxpayer should select his bank from the dropdown provided in the screen (i.e. the selection of the bank from which he wishes to make the online income tax payment).
  5. After selecting the applicable bank, the taxpayer should input the verification Code appearing on the screen.
  6. After providing the verification Code the taxpayer should click on the proceed button provided on the screen.
  7. On clicking on the proceed button, a new page will be displayed containing the details provided by the taxpayer in the Challan and the name of the taxpayer as per the data base of Income-tax Department will be displayed. The name will be displayed from the PAN/TAN database with the Department. In case of Form 26QB the name of the transferor and transferee will be displayed.
  8. If the name and other details as displayed on the screen are correct then the taxpayer can proceed for making payment by clicking on the submit to bank button provided on the screen.
  9. On submitting the challan to the bank, the gateway of the bank will be displayed on the screen and the taxpayer has to login to his account and input the details of tax, interest, cess, penalty, etc., to be paid.
  10. After providing the details he should verify the details once again to check the correctness and then should submit the challan to bank for effecting payment.
  11. On successful completion of the transaction, the challan of payment (i.e., receipt of payment) will be generated and will be displayed on the screen.
  12. Challan will contain Challan Identification Number (CIN) and other details. The taxpayer should preserve the hard copy as well as soft copy of the Challan for his records and for further requirements.

Check Income Tax Challan Status – Online Tax Payment Status Check

Using the Challan Identification Number, tax payers can track online the status of their challans deposited in banks.

Challan Status
Challan Status

Challan Check

By entering Challan Identification Number (CIN i.e. details such as BSR Code of Collecting Branch, Challan Tender Date & Challan Serial No.) and amount (optional),the tax payer can view the following details:

  • BSR Code
  • Date of Deposit
  • Challan Serial Number
  • Major Head Code with description
  • Name of Tax Payer
  • Received by TIN on (i.e. date of receipt by TIN)
  • Confirmation that the amount entered is correct (if amount is entered)

Click here to perform a tax payment challan check.

TAN based Check

Also, by providing TAN and Challan Tender Date range for a particular financial year , the tax payer can view the following details :

  • CIN
  • Major Head Code with descriprtion
  • Minor Head Code
  • Nature of Payment

Click here to perform a TAN based check.


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