Income Tax Online Payment

Income tax is levied based on the tax slab rates announced by the Finance Ministry during the Annual Budget. The Income Tax Slab rates for the current year are given below:

When should one pay income tax online?

Keeping up with the current digital era, the income tax department has made most of its services online. Users can file income tax returns, pay income taxes, claim refunds and many more income tax related services on the official Income Tax e-filing portal.

Income Tax payments are majorly of two types: 

• TDS – Tax Deducted at Source by your Employer remitted to the Government directly
• Non-TDS – These include payment of Advance tax, Self-Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company and Tax on Distributed income to unit holders.

For the first option, the individual does not have to do anything. The employer deducts tax from your salary and remits it to the Government. They will then give you Form 16 detailing the TDS details and you can file your Income Tax Returns.

Now, the second option is something that individuals who earn higher salaries, have income other than salaries or those who don’t have TDS would be using. You are required to use this option and pay tax if you are:

• A high net worth individual who pays advance tax
• Businessmen and Professionals who pay advance tax
• Individuals for whom TDS is not applicable and have to pay tax on their income
• Individuals who are liable to pay additional tax at the time of filing their Income Tax Returns
• Individuals who are required to pay tax on Distributed Profit or Income

How do I pay Income Tax Online?

Once you have calculated your tax liability, you can conveniently pay it online using netbanking or a debit card. Here are the steps to follow for online tax payment:

• To pay taxes online, login to the Tin-NSDL Portal. Go to Services e-payment Pay Taxes Online from the top of the page. You can also click on the ‘Click to pay taxes online’ option from the right hand side panel on the page.
• This will take you to the ‘e-Payment of Taxes’ page where you have different tax payment options.
• You have to choose the option – NON-TDS/TCS CHALLAN NO./ITNS 280 (Payment of Advance tax, Self-Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company and Tax on Distributed income to unit holders.)
• Click on ‘Proceed’ and you will be taken to a new page. Here, select ‘(0021) Income Tax (Other than Companies)’. Then you choose the reason for the tax payment. The options available are:
• (100) Advance Tax
• (102) Surtax
• (106) Tax on Distributed Profit
• (107) Tax on Distributed Income
• (110) Secondary Adjustment Tax
• (111) Accretion Tax
• (300) Self-Assessment Tax
• (400) Tax on Regular Assessment

• You will then have to choose the Payment Method – Netbanking or Debit Card
• In the next part, you have to enter your PAN number, Assessment Year for which you are paying the tax and your address details.
• Once you have entered all the information and verified them, you can enter the CAPTCHA code and hit enter.
• On the next page, it will display the details you have entered and ask you for a declaration to give Consent to NSDL e-Gov to access relevant information.
• Once you have verified the information and checked the declaration box, you can click on the ‘Submit to the Bank’ button. This will redirect you to your Bank’s website to enter the tax amount and complete the payment.
• Once the payment is successful, you will receive a Challan Receipt. Save it for your records.
• Upon paying your income tax, you can declare it under your Income Tax return on the official E-filing website.

FAQs on Online Payment of Income Tax

End Note

Paying income tax on time is the duty of every tax payer. You have to take the responsibility to calculate your tax liability and pay it before the due date to avoid penalties and interest. With convenient online payment options, paying income tax should be a breeze.