Keeping pace with the evolving technology and our dependence on it, the income tax department has allowed for online payment of taxes.
Prerequisites for e-Tax Payment
To be able to pay your taxes online one must ensure the following:
- You must have an account with a bank which is authorised to process the tax payments
- You must have internet banking activated on the account through which you want to make the payment.
Procedure of e-Tax Payment
- Login to the tin-nsdl portal for e-payment
- Select the challan under which you need to pay your taxes
- After selecting your challan, you will be redirected to a page where you will have to populate the following details:
- PAN for non-TDS payments
- Name and address details of taxpayer
- Year of Assessment
- Major head code
- Minor head code
- Type of payment
- Select the bank from the drop down available on the screen – If all the data has been validated a confirmation screen will appear
- On confirming the data, you will be directed to the net banking page of the bank.
- Enter the login credentials to access your net-banking site and enter payment details at the bank site.
- On successful payment a challan counterfoil will appear on your screen which contains the CIN, payment details and bank name through which e-payment has been made. This counterfoil is evidence of tax payment being made.
Eligibility for e-Tax Payment
With effect from 1st April, 2008 the following assessees have to mandatorily pay taxes electronically.
- All the corporate assesses.
- All assesses (other than company) to who the provisions of section 44AB of the Income Tax Act, 1961 are applicable.
Benefits of e-Tax Payment
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 updation of records
- Instant generation of the receipt of tax payment
- Verifying the status of tax payment can be done online
Banks Authorised 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 & Jaipur
- State Bank of Hyderabad
- State Bank of India
- State Bank of Indore
- 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
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