Steps to Pay Income Tax Online
Pay Income Tax Online
The Process of tax payment has become easier as it can be made online now. Visit the official website in order to make your income tax payment online. First, choose Challan 280, then enter your personal information, review the details which you entered, and submit it online.
What is Online Tax Payment?
The process earlier to submit your tax offline required a lot of time and paperwork making the whole process very complicated. As technology advances, a lot of tasks can be done online reducing paperwork, time, and effort. The same goes for the payment of tax which can now be done online in a few easy steps.
The Income Tax Department launched an e-tax system that allows you to pay your tax by filling up the necessary documents online thus making the whole process faster and easier.
Steps to Pay Income Tax Online
To make income tax online, you need to follow the steps mentioned below:
- Step 1 - Visit tin-nsdl.com and click on 'e-payment: Pay Taxes Online
- Step 2 - You will be redirected to a different page on doing that. There click on 'Proceed' under 'Challan No./ITNS 280' of the 'Non-TDS/TCS' tab
- Step 3 - On the next page, select '(0021) Income Tax (Other than Companies') under the Tax applicable tab and provide the details asked for.
- Step 4 - Select the mode of payment.
- Step 5 - Enter the captcha code displayed on the screen and click on 'Proceed'.
- Step 6 - On doing that, you will need to confirm the information provided on the previous page. To confirm, click on the 'Submit to the bank' button.
- Step 7 - Next, you will be redirected to the bank website to complete the payment.
- Step 8 - Once the payment is complete, a receipt will be generated which will contain details like the amount paid as tax, BSR code, challan serial number, date of challan, etc.
Eligibility of Paying Tax Online
To be eligible for Paying tax online, you need to make sure that you meet the eligibility criteria listed in the Income Tax Act.
- You must be an Indian citizen having an annual income of Rs.2.5 lakh or more
- If you are above 60 years, your annual income should be more than 3 lakhs, and 5 lakhs if you are above 80 years
- Have a firm that falls under guidelines of Section 44AB or a co-operative society, BOI, AOP, artificial juridical person, and local authority (ITR 5)
- A resident Indian who has property or financial interest in an entity or has signing authority over any account held outside the country
- If you claim tax relief under Sections 90 and 90A or claimed deductions as per Section 91
- If you are an assessee responsible for producing returns under Section 139 (4B) (ITR 7)
- Any company/companies
Working on Online Tax Payment
The payment of tax online is dependent on certain elements which are mentioned below in detail:
- PAN: You must have a valid PAN Card issued in your name to pay your income tax. The PAN card contains the 10-digit alpha-numeric number called PAN. Moreover, the PAN number is also used to log in to the ITR portal. Your PAN is the most important component if you successfully wish to pay your income tax online.
- TAN: TAN better known as Tax Deduction and Collection Account Number is another mandatory requirement for the successful payment of your income tax. As per the Income Tax Act, 1961, the Tax Deduction at Source (TDS) is deducted by the payer before the payment is made to the beneficiary and then submitted to the IT department. It is mandatory for individuals and organizations involved in such types of payments to have TAN.
- E-payment: If you hold a PAN and TAN then you can successfully make direct tax payments online through various online portals.
- OLTAS: Online Tax Accounting System (OLTAS) is the database that helps the Income Tax Department to manage the collection of taxes from all over the country.
- ERACS: Electronic Return Acceptance and Consolidation System (ERACS) is the interface between the taxpayer and a web-based utility for uploading TDS, Tax Collection at Source (TCS), and Annual Information Return (AIR) on the TIN's central system.
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