1. Steps to Pay Income Tax Due
Step 1: Select Challan 280
Go to the tax information network
of the Income Tax Department and click on ‘Proceed’ under Challan 280 option.
Step 2: Enter Personal Information
For individuals paying tax:
Select (0021) Income Tax (Other than Companies)
Select the type of payment correctly from the following:
- (100) Advance Tax
- (102) Surtax
- (106) Tax on Distributed Profit
- (107) Tax on Distributed Income
- (300) Self Assessment Tax
- (400) Tax on Regular Assessment
Select ‘Self-assessment tax’, if you have any taxes due to pay while filing your income tax returns.
Select the mode of payment you wish to choose. There are two modes of payment available – Net banking
or Debit Card
Select relevant Assessment Year (AY). For the period 1st April 2018 – 31st March 2019 the relevant AY is 2019-20
Enter your complete address
Enter Captcha in the given space and click on ‘Proceed’.
Step 3: Double check Information
Double-check the information displayed and you will have to submit the request to the bank. Then, you will be redirected to your bank’s payment page.
Step 4: Check Receipt (Challan 280)
After completing the payment, you’ll get a tax receipt on the next screen where you can see the payment details. You can see the BSR code and challan serial number on the right side of the challan.
Save a copy of the tax receipt or take a screenshot. You’ll need to enter the BSR code and challan number to enter in your tax return.
Pay Your Tax Due
If you’ve missed downloading the copy of your tax receipt, you can log in to your net banking account and retrieve it.
SBI Bank account holders
Login and go to e-tax (on the header) > Reprint challan (on the sidebar) to view the challan
ICICI Bank account holders
Login and on the header click on Payments and Transfers > Tax Center > e Tax challans
HDFC Bank account holders:
Login and click on ‘Request’ on the sidebar, scroll down and click on Regenerate Direct Tax Challans
2. Declaring the Taxes Paid
After you have made the tax payment, you need to furnish 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.
Add ChallanMore info on income tax payment…
3. Advance Tax
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.
a. Situations when you have to pay advance tax:
i. You are salaried but have high income from interest or capital gains or rental income
ii. You are a freelancer
iii. You are running a business
b. 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. are some expenses.Read more information on freelancers and taxes.
c. 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).
d. 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.
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Due Dates of Payment of Advance Tax for FY 2018-19
Non-payment of advance tax can result in penal interest levy under section 234B and 234C.
|On or before 15th June
||Up to 15% of advance tax
|On or before 15th September
||Up to 45% of advance tax less advance tax already paid
|On or before 15th December
||Up to 75% of advance tax less advance tax already paid
|On or before 15th March
||Up to 100% of advance tax less advance tax already paid
4. 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 section 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 from a CA to make sure that you paid the correct amount.
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5. Outstanding 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, you may do so online. It is also called the tax on regular assessment.
6.Frequently Asked Questions
What is included in my total tax payable during a year?
You arrive at your income taxes due by totalling all your income, availing all applicable deductions, determining your taxable income and then calculating your taxes at rates applicable to the income slab you fall under.
As a next step, if your income falls between Rs 50 lakhs and Rs 1 crore, a surcharge of 10% would apply and if your income exceeds Rs 1 crore, a surcharge of 15% would apply on taxes due. Further, 4% of taxes due (plus surcharge if any) will have to be added by way of health and education cess.If your income during a year is less than Rs 5 lakhs, you are eligible to claim a rebate under Section 87A up to Rs 12,500 or taxes due, whichever is lower.
Is it necessary for me to pay taxes online? If no, how can I pay it?
Law mandates that only the following taxpayers must mandatorily pay their taxes online:
b. Taxpayers other than companies that are subject to audit under Section 44ABThe remaining taxpayers can pay taxes in physical form by submitting the challan at designated banks. However, you can also avail the e-payment option as it is easy and saves time too.
Are there any benefits of paying taxes online?
Definitely. Not only does E-payment save time, you can avail facility anytime and anywhere. Further, unlike 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 basic things I need to be prepared with in order to may my taxes online?
For making e-payment of taxes, make sure you have an internet connection and an internet banking enabled for your bank account. In case you do not have net banking, you can make payment using net banking account of any 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, online facility of payment has been enabled for almost all kinds of taxes. Here are some taxes that can be paid online
a. Income tax
b. Corporate tax
c. TDS (Tax Deducted at Source)
d. TCS (Tax Collected at Source)
e. Securities Transaction Tax (STT)
f. Equalization levy
What are the various challans that are applicable for various types of payments?
The various challans and the nature of tax payments for which they are applicable are captured in the below table:
|Challan||Nature of tax payment
|ITNS 280||Income tax and corporate tax
|ITNS 281||TDS and TCS by corporate and non-corporate deductors/ collectors
|ITNS 282||Payment of STT
|ITNS 284||Income tax and corporate tax in case of undisclosed foreign income and assets
|ITNS 285||Equalization levy
Whom should I contact if I face any issues while making tax payment online?
While making e-payment, in case you encounter any problem at the NSDL website, you can contact the TIN call center.
In case you face any problem at the payment gateway of your bank, you can contact your bank.
What to do when you have selected the wrong assessment year while paying tax?
Even if you have been cautious while paying taxes, you may end up making a mistake, i.e. you may choose a wrong assessment year at the time of making payment. The major cause for such a mistake to happen is not knowing the meaning of the term ‘assessment year’. Assessment year means the year in which your taxes are assessed. Precisely, it is the year following the year for which you are paying the taxes. If you are paying taxes for the year 2018-19, the assessment year to pay this tax will be 2019-20.If you have chosen the assessment year incorrectly, follow the below steps:
Step 1: Mention the payment details when you file your IT returns for the year even if the assessment year you have chosen while paying the tax is incorrect.
Step 2: You can request the office of your jurisdictional assessing officer to correct the challan for the error in the ‘assessment year’. You can locate the office of the assessing officer on the e-filing website of the income tax department. In a case where you have just paid a challan, you can request the bank to do the challan correction within 7 days of the date of deposit.
Step 3: When the assessing officer (AO) processes your returns, he most probably issues a notice as the payment details do not match with the records.
Step 4: Respond to the AO with the details of the error caused while paying the tax.
Step 5: You must also submit a rectification of return under Section 154.
Step 6: The AO has the power to make the required corrections in your return if he is convinced with your rectification request. Once he approves your request, he will make the required changes in the IT returns and close it.
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