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Income Tax Challan - How to Pay Your Income Tax Online?

Income Tax Challan - How to Pay Your Income Tax Online?

⚠IMPORTANT
Income tax payment facility has been migrated from OLTAS to ‘e-Pay Tax’ facility on the e-filing portal. As a result, Challan 280 is no longer necessary or applicable. Please refer to the detailed guide below on how to make your tax payment on the income tax portal.

How to e-Pay Tax Online?

Here's a step-by-step guide on how to make tax payment on the Income Tax Portal without logging in:

Step 1: Navigating to 'e-Pay Tax' Section

  1. Visit the Income Tax Portal
  2. On the homepage, locate the 'Quick Links' section on the left side. 
  3. Click on the 'e-Pay Tax' option or use the search bar to find 'e-Pay Tax'.

e-pay tax

Step 2: Enter PAN/TAN and Mobile Number

  1. Enter your PAN and re-enter to confirm it. 
  2. Provide your mobile number and click 'Continue'.
     

PAN for e-pay tax

  •   Enter the 6-digit OTP received on your mobile number and click 'Continue'.
     

OTP verification for e-pay tax

Step 3: Select the correct Assessment Year and Payment Type

  1. Select the first box labelled as ‘Income Tax’ and click ‘Proceed’ 
     

Income tax

  1. From the ‘Assessment Year’ dropdown, select ‘2024-25’
  2. Under the ‘Type of Payment’, select ‘Self-Assessment Tax (300)’ and click on 'Continue'.

Step 4: Enter Tax Payment Details

  •  Enter the payment amounts accurately under the relevant categories.
  •  You can refer to the pre-filled challan on Easytax for the necessary amounts.

Step 5: Select the Payment Method

  1. Select the payment method and bank to make the tax payment and press 'Continue'.
  2. Payment can be made using internet banking, debit card, credit card, RTGS/NEFT, UPI or you can choose to pay at the bank counter.

Step 6: Verify Payment Information

  1. After clicking 'Continue', you can preview the challan details.
  2. Double-check the payment information for accuracy.
  3. Click 'Pay Now' to make the payment or 'Edit' to modify the details.
     

Step 7: Submit the Payment

  1. Tick the checkbox to agree to the Terms and Conditions.
  2. Click 'Submit To Bank' to proceed with the payment.

Step 8: Receive Payment Confirmation

  1. You will receive a confirmation once your tax payment has been successfully submitted.
    Note: Remember to download the challan as you will need the BSR code and Challan number to complete the return filing process.

Step 9: Declaring Tax Paid Details

  1. After making the tax payment, update the payment information on Cleartax.
  2. Go to the 'Tax Summary' page and click 'Add Paid Tax Details'.
     

Updating tax payment details on Cleartax

  1. Upload the challan or enter the details manually.
     

  1. Once done, your tax payment status will change to 'taxes paid'.
  2. Proceed to e-file and e-verify your return on Easytax
     

e-file on easytax

You may refer to this guide for further steps.

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Banks Authorised for e-Tax Payment

Here's an updated list of banks that can be found on the e-filing portal for e-payment of taxes w.e.f 28.04.2023:

  • Axis Bank
  • Bandhan Bank
  • Bank of Baroda
  • Bank of India 
  • Bank of Maharashtra
  • Canara Bank
  • Central Bank of India 
  • City Union Bank
  • DCB bank
  • Federal Bank
  • HDFC Bank
  • ICICI Bank
  • IDBI Bank
  • Indian Bank 
  • Indian Overseas Bank
  • IndusInd Bank
  • Jammu and Kashmir Bank
  • Karur Vysya Bank
  • Kotak Mahindra Bank
  • Punjab National Bank
  • Punjab & Sind Bank
  • RBL Bank
  • State Bank of India
  • South Indian Bank
  • UCO BANK
  • Union Bank of India

Benefits of e-Tax Payment

The provision of being able to pay taxes electronically has definitely made paying taxes a lot easier. Some of the benefits of e-Payments are as follows:

  • Saves time and can be done at one’s convenient time, avoiding long queues
  • Tax department records are updated automatically without the taxpayer having to take additional measures to ensure the updating of records
  • Instant generation of the receipt of tax payment
  • Verifying the status of tax payment can be done online

Eligibility for e-Tax Payment

With effect from 1st April, 2008 the following assessees have to mandatorily pay taxes online.

  • All the corporate assesses.
  • All assesses (other than company) to whom the provisions of section 44AB of the Income Tax Act, 1961 are applicable.

 

Documents Required for Paying Income Tax Online

  • Form 16
  • Salary slips and bank statement
  • Form 16A, Form 16 B, or Form 16C
  • Interest certificates issued by bank or post office
  • Form 26AS
  • Tax saving investment proof
  • Aadhaar Card
  • PAN Card
  • Home loan statement
  • Capital gain Statement

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 sections 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 by a CA to make sure that you paid the correct amount.

GET A CA TO HELP YOU  

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.

Situations When You Have to Pay Advance Tax

  • You are salaried but have high income from interest or capital gains or rental income
  • You are a freelancer
  • You are running a business

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. some expenses. Read more information on freelancers and taxes.

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.

Plan Early and Get ahead for next year’s savings
Use Tax Calculator and get your taxes estimates in mins as per new budget
Calculate Now

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.

Due Dates of Payment of Advance Tax for FY 2024-25

 DatesFor Individuals
On or before 15th JuneUp to 15% of advance tax
On or before 15th SeptemberUp to 45% of advance tax less advance tax already paid
On or before 15th DecemberUp to 75% of advance tax less advance tax already paid
On or before 15th MarchUp to 100% of advance tax less advance tax already paid

Non-payment of advance tax can result in penal interest levy under sections 234B and 234C.

BUY AN EXPERT ASSISTED PLAN

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.

Frequently Asked Questions

Step 1: Navigate to 'e-Pay Tax' section on Income Tax Portal
Step 2: Enter PAN/TAN and Mobile Number
Step 3: Select the correct Assessment Year and Payment Type
Step 4: Enter Tax Payment Details
Step 5: Select the Payment Method
Step 6: Verify Payment Information
Step 7: Submit to Bank
Step 8: Receive Payment Confirmation

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 lakh 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 lakh, you are eligible to claim a rebate under Section 87A up to Rs 12,500 or taxes due, whichever is lower.

The law mandates that only the following taxpayers must mandatorily pay their taxes online: a. Companies b. Taxpayers other than companies that are subject to audit under Section 44AB. The 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.

Definitely. Not only does e-payment save time, but you can also avail the facility anytime and anywhere. Further, unlike the 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.

For making e-payment of taxes, make sure you have an internet connection and internet banking enabled for your bank account. In case you do not have net banking, you can make payments using the 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.

These days, the online facility of payment has been enabled for almost all kinds of taxes. Here are some taxes that can be paid online:

  1. Income tax
  2. Corporate tax
  3. TDS (Tax Deducted at Source)
  4. TCS (Tax Collected at Source)
  5. Securities Transaction Tax (STT)
  6. Equalisation levy

Even if you have been cautious while paying taxes, you may end up making a mistake, i.e. you may choose the 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 2023-24, the assessment year to pay this tax will be 2024-25.If you have chosen the assessment year incorrectly, follow the below steps:

Step 1: Include the payment details when filing your income tax returns for the year, even if the assessment year chosen during tax payment is incorrect.
Step 2: Request your jurisdictional assessing officer to correct the challan regarding the assessment year error. You can find the details of your assessing officer on the e-filing website of the income tax department. If you have recently made the payment, you can ask the bank to rectify the challan within 7 days of the deposit date.
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, providing details of the error made during tax payment.
Step 5: Submit a rectification request 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 approved, the AO will make the required changes in your return and close it.

No, the taxpayer cannot change the mode of payment once the challan is generated. If the taxpayer wants to make tax payment through some other mode, a new challan(CRN) needs to be generated and the old challan will expire after 15 days.