Income Tax Return can be filed only on due payment of pending tax liability. The challan number and BSR code is mandatory for filing ITR. Paying taxes online has become a simpler and more efficient process with the introduction of the Income Tax Portal's “e-Pay Tax feature”. One can easily pay tax using a debit card, credit card, internet banking facility, and UPI. A taxpayer can easily access this facility through the income tax portal.
This article explains in detail, the steps to make payment and generate challan in the Income Tax Portal and other relevant topics.
How to e-Pay Tax Online?
Here's a step-by-step guide on how to make tax-payment on the Income Tax Portal without logging in:
Step 1: Navigating to 'e-Pay Tax' Section
Visit the Income Tax Portal
On the homepage, locate the 'Quick Links' section on the left side.
Click on the 'e-Pay Tax' option or use the search bar to find 'e-Pay Tax'.
Step 2: Enter PAN/TAN and Mobile Number
Enter your PAN and re-enter to confirm it.
Provide your mobile number and click 'Continue'.
Enter the 6-digit OTP received on your mobile number and click 'Continue'.
Step 3: Select the correct Assessment Year and Payment Type
Select the first box labelled as ‘Income Tax’ and click ‘Proceed’
From the ‘Assessment Year’ dropdown, select ‘2025-26’
Under the ‘Type of Payment’, select ‘Self-Assessment Tax (300)’ and click on 'Continue'.
Step 4: Enter Tax Payment Details
Enter the payment amounts accurately under the relevant categories.
You can refer to the pre-filled challan on ClearTax for the necessary amounts.
Step 5: Select the Payment Method
Select the payment method and bank to make the tax payment and press 'Continue'.
Payment can be made using internet banking, debit card, credit card, RTGS/NEFT, UPI or you can choose to pay at the bank counter.
Step 6: Verify Payment Information
After clicking 'Continue', you can preview the challan details.
Double-check the payment information for accuracy.
Click 'Pay Now' to make the payment or 'Edit' to modify the details.
Step 7: Submit the Payment
Tick the checkbox to agree to the Terms and Conditions.
Click '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 to complete the return filing process.
Step 9: Declaring Tax Paid Details
Download the payment challan from the income tax portal.
After making the tax payment, update the payment information on ClearTax.
Go to the 'Tax Summary' page and click 'Add Paid Tax Details'.
Upload the challan or enter the details manually.
Once done, your tax payment status will change to 'taxes paid'.
Proceed to e-file and e-verify your return on ClearTax
The provision of being able to pay taxes electronically has definitely made paying taxes a lot easier. Some of the benefits of e-Payments are as follows:
Saves time and can be done at one’s convenient time, avoiding long queues
Tax department records are updated automatically without the taxpayer having to take additional measures to ensure the updating of records
Instant generation of the receipt of tax payment
Verifying the status of tax payment can be done online
Eligibility for e-Tax Payment
The following assessees have to mandatorily pay taxes online:
All the corporate assessees.
All assessees (other than company) to whom the provisions of section 44AB of the Income Tax Act, 1961 are applicable.
Interest certificates issued by bank or post office
Form 26AS
Tax saving investment proof
Aadhaar Card
PAN Card
Home loan statement
Capital gain Statement
Annual Information Statement (AIS)
Taxpayer Information Summary (TIS)
Self-Assessment Tax
You cannot submit your income tax return to the income tax department unless you have paid tax dues in full. Sometimes, you may see tax payable at the time of filing your return. This tax is called Self Assessment Tax, which you can pay online to ensure successful e-filing. You should also pay the interest under sections 234B and 234C along with your tax due, if you are paying tax after 31 March. When you e-file with Cleartax, our system will automatically tell you how much tax you need to pay to file your return. You can also get your return verified by a CA to make sure that you paid the correct amount.
If you have annual tax dues exceeding Rs 10,000, you must pay income tax in advance. Usually, for the salaried class, employers take care of these income tax payments via TDS deductions.
Situations When You Have to Pay Advance Tax
You are salaried but have high income from interest or capital gains or rental income
You are a freelancer
You are running a business
How to Calculate and Pay Advance Tax?
Add income from all sources. Include salary income, interest income, capital gains etc., just like you do at the time of filing your income tax return. If you are a freelancer, estimate your annual income from all clients, and deduct expenses from it. Rent of your workplace, internet bills, mobile bills, depreciation on computers, travel expenses etc. some expenses. Read more information on freelancers and taxes.
How to Determine and Allow Deductions?
Reduce deductions you want to claim from your total income and arrive at your taxable income on your tax return. The deductions that come under Section 80C, 80D, 80E or any other you want to claim. Read more on Section 80C, 80CCC and 80CCD.
How to Calculate Tax Due on Total Income
Apply the latest income tax slab rates on your taxable income to calculate your income tax due. Reduce any TDS that may have been deducted from your total tax due. And make sure you have paid according to these instalments. You can make these payments online.
Our CAs can calculate your advance tax liability and help you with paying it online.Seeing a large tax outgo? Don’t worry, our CAs can help calculate your freelancing income and make sure your taxes are optimized.
Due Dates of Payment of Advance Tax for FY 2025-26
Dates
For Individuals
On or before 15th June 2025
Up to 15% of advance tax
On or before 15th September 2025
Up to 45% of advance tax less advance tax already paid
On or before 15th December 2025
Up to 75% of advance tax less advance tax already paid
On or before 15th March 2026
Up to 100% of advance tax less advance tax already paid
Non-payment of advance tax can result in penal interest levy under Sections 234B and 234C.
Sometimes, you may have to make an income tax payment to comply with an income tax demand notice. If you agree with the assessing officer and are ready to pay the demand, you may do so online. It is also called the tax on regular assessment.
Final Word
Income tax payment is now easy with online payment options available to taxpayers. This payment option can be accessed through the income tax portal. Through this article, the taxpayer should easily understand the process of paying tax online through the income tax portal.
Frequently Asked Questions
How to pay income tax online?
Income Tax can be paid online using e-Pay tax section on the Income Tax Portal
What is included in my total tax payable during a year?
Total tax payable includes taxes, minus rebates as applicable, surcharge(as applicable) and cess. There can also be interest and late fees levied when the returns are not filed on time.
Is it necessary for me to pay taxes online? If not, how can I pay for it?
Only companies and tax audit assessees are mandatorily required to pay taxes online. Others may pay taxes physically at designated banks using a challan. But, e-payment is quicker and more convenient, and can be used by anyone.
Are there any benefits of paying taxes online?
Definitely. Not only does e-payment save time, but you can also avail the facility anytime and anywhere. Further, unlike the physical mode of payment where the credit of taxes paid goes to the government at least after a day only, online payment gives credit to the government immediately.
What are the prerequisites for paying my taxes online?
For making e-payment of taxes, make sure you have an internet connection and internet banking enabled for your bank account. In case you do not have net banking, you can pay using the net banking account of other person. However, please make sure the taxes are discharged in your name and against your PAN only, for you to get the credit.
What all taxes can be paid electronically?
These days, the online facility of payment has been enabled for almost all kinds of taxes. Income tax, Corporate tax, TDS (Tax Deducted at Source), TCS (Tax Collected at Source), Securities Transaction Tax (STT), Equalisation levy can be made online.
What to do when you have selected the wrong assessment year while paying tax?
If you have chosen the assessment year incorrectly, you can update the same challan details and file the return. You will most probably receive notice from the assessing officer. Then you can respond to AO, providing details of the mistake in payment. You can submit a rectification request u/s 154. If the AO is satisfied, he will close the issue.
Can a taxpayer change the mode of payment after generating challan(CRN)?
No, the taxpayer cannot change the mode of payment once the challan is generated. If the taxpayer wants to make tax payment through some other mode, a new challan(CRN) needs to be generated and the old challan will expire after 15 days.
How is the new e-Pay Tax service on the e-Filing portal better than the previous "OLTAS ePayment of Taxes" service on the Protean (formerly NSDL) portal?
The new e-Pay Tax service on the e-Filing portal streamlines the entire tax payment process, from generating challans to recording payment history, for authorized banks. It offers various payment modes, including net banking, debit cards, and bank counters, along with RTGS/NEFT for non-authorized banks. The service also includes a Challan Status Inquiry (CSI) feature for tracking payments.
About the Author
CA Mohammed S Chokhawala
Content Writer
I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more
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