Income Tax Made Easy: Step-by-Step Guide to Online Challan Payments
How to e-Pay Tax online?
Explore a simple, step-by-step guide to making tax payments via the Income Tax Portal without the need for logging in:
Step 1: Navigating to ‘e-Pay Tax’ Section
- Access the Income Tax Portal and then proceed to the homepage.
- Once there, spot the ‘Quick Links’ segment positioned on the left-hand side.
- Select the ‘e-Pay Tax’ option from this section, or alternatively, use the search bar to find the ‘e-Pay Tax’ feature. (Online Challan Payments)
Step 2: Enter PAN/TAN and Mobile Number
- Input your PAN (Permanent Account Number) and re-enter it to confirm.
- Enter your mobile number and then click on the ‘Continue’ button.
- Input the 6-digit OTP (One-Time Password) received on your mobile number, then click on the ‘Continue’ button.
Step 3: Select the correct Assessment Year and Payment Type
- Choose ‘2023-24’ from the ‘Assessment Year’ dropdown menu.
- Under ‘Type of Payment’, select ‘Self-Assessment Tax (300)’ and then click on ‘Continue’.
Step 4: Enter Tax Payment Details
- Enter the payment amounts accurately in the corresponding categories.
- You can use the pre-filled challan on Cleartax as a reference for the required amounts. (Online Challan Payments)
Step 5: Select the Payment Method
- Choose the payment method and bank to proceed with the tax payment, then press ‘Continue’.
- Payment options include internet banking, debit card, credit card, RTGS/NEFT, UPI, or you can opt to pay at the bank counter.
Step 6: Verify Payment Information
- Upon clicking ‘Continue’, you will be able to preview the details of the challan.
- Double-check the payment information to ensure accuracy.
- Click on ‘Pay Now’ to proceed with the payment, or ‘Edit’ to make any necessary modifications to the details.
Step 7: Submit the Payment
- Check the checkbox to indicate your agreement with the Terms and Conditions.
- Then, click on ‘Submit To Bank’ to proceed with the payment.
Step 8: Receive Payment Confirmation
- You will receive a confirmation once your tax payment has been successfully submitted.
Note: Remember to download the challan as you will need the BSR code and Challan number for completing the return filing process.
Banks Authorised for e-Tax Payment
- City Union Bank
- Federal Bank
- HDFC Bank
- ICICI Bank
- IDBI Bank
- Karur Vysya Bank
- Kotak Mahindra Bank
- Punjab National Bank
- Punjab & Sind Bank
- RBL Bank
- Axis Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
Benefits of e-Tax Payment
The availability of electronic tax payment options has undeniably streamlined the tax payment process. Here are some of the benefits of e-Payments:
– Saves time and can be done at one’s convenience, eliminating the need to wait in long queues.
– Tax department records are automatically updated, relieving taxpayers of the burden of ensuring record updates.
– Instant generation of tax payment receipts.
– Online verification of tax payment status is possible.
Eligibility for e-Tax Payment
Effective from April 1st, 2008, the following taxpayers are required to pay taxes online:
1. All corporate assesses.
2. All assesses (excluding companies) to whom the provisions of section 44AB of the Income Tax Act, 1961 are applicable.
Self-Assessment Tax
You cannot submit your income tax return to the income tax department unless you have paid your tax dues in full. Occasionally, you may find tax payable when filing your return. This tax is termed Self Assessment Tax, which you can conveniently pay online to facilitate successful e-filing.
Moreover, if you are paying tax after March 31st, you should also settle the interest under sections 234B and 234C along with your tax due. When you e-file using Cleartax, our system will automatically calculate the amount of tax you need to pay to file your return accurately. Additionally, you have the option to have your return verified by a Chartered Accountant to ensure that you have paid the correct amount.
Situations When You Have to Pay Advance Tax:
You fall into one of the following categories:
1. You are a salaried individual but have significant income from interest, capital gains, or rental income.
2. You work as a freelancer.
3. You are operating a business.
Advance Tax
If your annual tax liability exceeds Rs 10,000, you are required to pay income tax in advance. Typically, for salaried individuals, employers handle these income tax payments through TDS (Tax Deducted at Source) deductions.
How to Determine and Allow Deductions
To calculate your taxable income on your tax return, subtract the deductions you wish to claim from your total income. These deductions may include those under Section 80C, 80D, 80E, or any other applicable sections. For further information on deductions under Section 80C, 80CCC, and 80CCD, please refer to the relevant sections.
How to Calculate and Pay Advance Tax?
Calculate your total income by aggregating income from all sources, such as salary income, interest income, capital gains, etc., similar to the process during income tax return filing. If you work as a freelancer, estimate your annual income from all clients, then deduct expenses from it. These expenses may include rent for your workplace, internet bills, mobile bills, depreciation on computers, travel expenses, and other relevant expenses.
Outstanding Demand Payment
Occasionally, you might receive an income tax demand notice requiring you to make an income tax payment. If you agree with the assessing officer’s assessment and are prepared to settle the demand, you can do so online. This payment is also known as the tax on regular assessment.
How to Calculate Tax Due on Total Income
Apply the most recent income tax slab rates to your taxable income to determine your income tax liability. Subtract any TDS (Tax Deducted at Source) that may have been deducted from your total tax due. Ensure that you have paid taxes according to the required instalments, which can be done online.
Our Chartered Accountants (CAs) can assist you in calculating your advance tax liability and facilitate online payments. If you’re concerned about a significant tax outlay, our CAs can also help optimize your taxes by calculating your freelancing income accurately. For any queries, contact us, today!
Frequently Asked Questions
- What is included in my total tax payable during a year?
To calculate your income taxes due, you need to sum up all your income, apply all applicable deductions, determine your taxable income, and then calculate your taxes based on the rates applicable to the income slab you belong to. Additionally, if your income falls between Rs 50 lakh and Rs 1 crore, a surcharge of 10% would apply. If your income exceeds Rs 1 crore, a surcharge of 15% would apply on taxes due. Moreover, 4% of taxes due (plus surcharge if any) must be added by way of health and education cess. If your income for the year is less than Rs 5 lakh, you are eligible to claim a rebate under Section 87A of up to Rs 12,500 or taxes due, whichever is lower.
- Are there any benefits of paying taxes online?
Absolutely. Electronic payment not only saves time but also offers the convenience of accessing the facility anytime and anywhere. Moreover, unlike the traditional physical mode of payment where the credit of taxes paid is received by the government at least after a day, online payment instantly credits the government. (Online Challan Payments)
- What all taxes can be paid electronically?
In recent times, online payment facilities have been made available for almost all types of taxes. Here are some taxes that can be paid online:
– Income tax
– Corporate tax
– TDS (Tax Deducted at Source)
– Equalisation levy
– TCS (Tax Collected at Source)
– Securities Transaction Tax (STT)
- How to pay income tax online?
Step 1: Go to the ‘e-Pay Tax’ section on the Income Tax Portal.
Step 2: Input your PAN/TAN and Mobile Number.
Step 3: Choose the appropriate Assessment Year and Payment Type.
Step 4: Fill in the Tax Payment Details.
Step 5: Select your preferred Payment Method.
Step 6: Double-check the Payment Information for accuracy.
Step 7: Proceed to Submit the payment to the Bank.
Step 8: Receive Confirmation of the Payment.
- What are the prerequisites for paying my taxes online?
To make e-payment of taxes, ensure that you have an internet connection and internet banking enabled for your bank account. If you do not have net banking, you can use the net banking account of another person to make payments. However, ensure that the taxes are discharged in your name and against your PAN only to receive credit. (Online Challan Payments)
