The Income Tax Department, through its e-governance programs, has brought about massive changes to the standard taxation procedures. E-proceedings, faceless assessment, tax payment via e-payment, and many more. The e-payment option for income tax has been around for quite a while. The payment options were primarily debit cards and net banking. The income tax department has launched UPI and credit cards as payment methods of tax on income online. Find out more here.
Types Of Income Tax Payments
- Advance Tax
- Self Assessment Tax
- Dividend Distribution Tax
- Tax Deducted At Source
- Tax Collected At Source
Procedure To Make Income Tax Payment Via UPI Or Credit Card
On the website for e-filing of the Income Tax
- Visit the Income Tax Department’s official website for e-filing.
- Click on “e-pay Tax” on the left-hand side, vertical menu bar.
- You can enter your PAN to pay income tax other than TDS and TAN for TDS payment.
- Verify your PAN or TAN by entering it again.
- Enter your mobile number.
- Send your mobile OTP.
- A text message will read, “You have successfully verified through mobile OTP.” Then click continue.
- There is “Income Tax” in the first box. Select Proceed.
- Choose”Assessment Year” or “Assessment Year”. Once you have selected it, you will find the relevant financial year to the year of assessment you set.
- Choose the “Type of payment” (minor head). You will be able to see the significant leader of the little head. Continue clicking.
- Make a break-up of taxes, surcharges, education cess, interest, penalty, and other amounts and record the appropriate parts.
- The “New payment page” becomes visible, viewing different payment options.
- Choose”Payment Gateway” from the “Payment Gateway” option. Select one of “Canara Bank, Kotak Mahindra Bank, and Federal Bank.”
- You will see an overview of the cashier’s challan when you click on the option. Select “Pay now”.
- Go to the page with terms and conditions. Click on the box that says Terms and Conditions.
- Click on Cards and select the credit card you prefer for payment.
- Select UPI and then enter your UPI ID to pay tax on income.
- When the transaction is completed, you will receive an e-challan with the CIN (Challan Identification Number), displaying the BSR code, challan date, and Challan Reference Number (CRN). Download the challan and save it to be able to refer back later.
The income tax can also be paid via the e-filing portal when you file your tax return for payment.
- Make sure you fill out every one of the schedules on your tax return.
- The final section, “Tax on Total Income,” will include that you have the “Pay Now” option if there is an outstanding tax obligation. This is referred to as a self-assessment tax.
- The site will take you to the challan webpage, where all required fields must be filled in.
- The fields are already filled in; you must verify they’re correct. Enter your information and click submit.
- Follow the steps 12-17 in the manner described above.
Track Your Payment Status
You can check how you are doing with your income tax payments on the home page of the official tax-related e-filing site for income tax.
- Select “Know Payment Status” from the menu bar on the left.
- Enter your PAN/TAN number, CRN number, and mobile number.
- You must enter your mobile OTP and then click submit.
- You can check what is happening with your tax refund.
Advantages Of Paying Income Tax Online
- Instant payment confirmation and generation of challans.
- Simple to use for payment and filing.
- Secure payment gateways that the Income Tax Department authorizes.
- Depending on your convenience costs, there is a wide range of choices.
- Redressing grievances immediately in the event of a failure in payment.
Conclusion
The Income Tax Department, understanding the ease of government business initiatives, has created a range of ways to pay income tax. The payment window is also easy to use. You can complete your income tax payments in a flash. Avoid the long lines at banks and take advantage of online payment options. Your cash and time are secure.
