Step by step guide on how to pay Income Tax that is due

Step 1. Select Challan 280

Go to the tax information network of the Income Tax Department and select Challan 280.
Click here to go to the government website and pay your tax

Select Challan

Step 2.Enter Personal Info

For individuals paying tax, select:

 Please choose the Assessment Year correctly
 Choose
 If you are paying taxes after the Financial Year has ended.

View mandatory fields to be filled in

Note: Choose “(100) ADVANCE TAX” if you are paying taxes during the financial year. Choose “(400) TAX ON REGULAR ASSESSMENT” if you get a demand notice from the Tax Department.

Enter Personal Information

Step 3.Double check info

You will be redirected to the net banking page. Double check the information entered here and enter the income tax amount to be paid in the income tax field.

Tip: You can leave surcharge, education cess, interest and penalty blank.

Double check info

Step 4. Check Receipt (Challan 280)

This is your Challan 280. You will be able to see details about your payment on taxpayer’s counterfoil. Add BSR code and challan number on the right.

Check Receipt
Pay Your Tax Due

How to file your returns after payment

Report payment information

Afer you have made the tax payment, you need to report this information in your Income Tax Return. Go to Taxes Paid Summary Page on ClearTax to update this information.
Select the “Self Tax Payments” tab and enter the BSR code and challan number from Challan 280.
Note: BSR code is a 7-digit number and challan serial number is of 5 digits.

Pay Income Tax - Report payment information
Upload ChallanMore info on income tax payment…

Income tax payment is made for –

  • Advance Tax
  • Self Assessment Tax
  • Outstanding tax demand payment

Advance Tax

If you have annual tax dues of more than Rs 10,000, you must pay income tax in advance. Usually, for the salaried, these income tax payments are taken care of via TDS deductions by employer.

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:

Estimate your Total Income: Add income from all sources. Include salary income, interest income, capital gains etc. Just like you would at the time of filing your income tax return. If you are a freelancer, estimate your annual income from all clients.

Freelancers have to Subtract Expenses: Freelancers are allowed to deduct expenses from their freelancing receipts. Rent of your workplace, internet, mobile bill, depreciation on computers, travel expenses etc. Read more here: Guide .

Allow deductions: Reduce deductions you want to claim in your tax return. Deductions such as thoe allowed under section 80C, 80D, 80E or any other than you want to claim. (See full list of deductions here). From your total income reduce deductions and arrive at your taxable income.

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. These payments of income tax can be made 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 optimised.

Get a CA to help you

Due Dates of payment of Advance Tax for FY 2016-17

For Individuals
On or before 15th June Up to 15% tax
On or before 15th September Up to 45% of tax
On or before 15th December Up to 75% of tax
On or before 15th March Up to 100% of tax

Non-payment of advance tax can result in penal interest levy under section 234B and 234C.

Self Assessment Tax

Your income tax return cannot be submitted to the tax department, unless you have paid tax dues in full. Sometimes, you may see tax payable at the time of filing your return. This income tax must be paid online, so that return is successfully e-filed afterwards. Usually, interest under section 234B and 234C will also have to be paid along with your tax due, if you are paying tax after 31st March.

When you are efiling 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 from a CA and make sure your taxes are paid appropriately.

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Outstanding tax demand payment

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, such income tax can also be paid online.

File your Income Tax returns

Finish your returns before 31st March Deadline

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