Income Tax

Step-by-Step Guide: How to Pay Income Tax Online

April 16, 2024
Broadcast

Paying your income tax online is convenient, efficient, and ensures compliance with tax regulations. Whether you’re an individual taxpayer or a business entity, here’s a step-by-step guide on how to pay your income tax online:

1. Log in to the e-Filing Portal:

2. Navigate to the e-Pay Tax Section:

  • Once logged in, go to the Dashboard.
  • Click on e-File > e-Pay Tax. You’ll be directed to the e-Pay Tax page.

3. Generate a New Challan Form (CRN):

  • On the e-Pay Tax page, click the New Payment option.
  • Select the applicable tax payment tile based on your requirements (e.g., income tax, advance tax, self-assessment tax).

4. Provide Tax Payment Details:

  • Choose the relevant Assessment Year.
  • Specify the “Type of Payment (minor head)” e.g., income tax, corporate tax, etc.
    • Self-Assessment Tax (300) (select this option if the you are paying the tax after the end of the financial year.
    • Tax on Distributed Income to Unit Holders (107)
    • Payment of Demand/Penalty/lnterest etc. under Undisclosed Foreign Income And Assets And Imposition of Tax Act, 2015 (Black Money Act) (108)
    • Secondary Adjustment Tax under Section 92CE of Income-tax Act, 1961 (110)
    • Accretion Tax under Section 115TD of Income-tax Act, 1961 (111)
    • Other Receipts (500)
  • If the nature of assessee is other than companies “Specify the minor head (0021 – Income Tax (Other than Companies)).”
  • Fill in other necessary details (such as PAN/TAN, tax amount, etc.) and click Continue.

5. Add Tax Breakup Details:

  • Break down the total tax amount into its components (e.g., income tax, interest, penalties).
  • Click Continue to proceed.

6. Select Payment Mode:

  • Choose the Payment Gateway mode.
  • This allows you to pay using Credit Card, Debit Card, Net banking, or UPI.

7. Preview and Make Payment:

  • Verify all the details, including the tax breakup.
  • Click Pay Now to proceed.
  • You’ll be redirected to the Payment Gateway website.

8. Submit to Bank:

  • Read and accept the terms and conditions.
  • Enter your Net Banking/Debit Card/Credit Card/UPI details on the Payment Gateway website.
  • Complete the payment process.

9. Confirmation and Receipt:

  • After successful payment, you’ll receive:
    • A confirmation email.
    • An SMS on the mobile number registered with the e-Filing portal.
  • Details of the payment and the Challan Receipt will be available under the Payment History tab on the e-Pay Tax page.

Remember to keep records of your payment for future reference. Online tax payment streamlines the process and ensures timely compliance with tax obligations.