document modified on 25.08.2016

Pay Income Tax and Other Direct Taxes Online

There are two modes of payment of direct taxes (i) physical mode i.e. payment by furnishing the hard copy of the challan at the designated bank; and (ii) e-payment mode i.e. making payment by using the electronic mode.

Mandatory or compulsory e-payment

It is compulsory for the following taxpayers to pay tax using the e-payment mode only (i.e., using internet banking facility). In other words, following persons cannot use the physical mode of payment of tax and have to pay the tax electronically using the e-payment facility:

  • All companies
  • All taxpayers other than company who are liable to get their accounts audited as per section 44AB.

Optional e-payment

A person not covered in the mandatory category can voluntarily pay his tax by using the e-payment mode. E-payment is time saving, simple, safe and this facility can be used at any time from anywhere.

Requirements for making e-payment

For making e-payment of taxes one should have only two things, an internet connection and a net banking enabled account in an authorised bank. If the taxpayer does not have a net banking enabled account, then he can make e-payment using a net banking enabled account of any other person but the tax should be paid in his name.

Taxes which can be paid electronically

Following direct taxes can be paid using the e-payment mode :

  1. Income-tax
  2. Corporate tax (i.e., income-tax paid by a company)
  3. Tax deducted at source (TDS)
  4. Tax collected at source (TCS)
  5. Securities Transaction Tax (STT)
  6. Wealth-tax and other direct taxes like gift tax, expenditure tax, etc

Challan to be used

Challan No.Nature of tax payment
ITNS 280 For making payment of income-tax and Corporate tax (i.e. income-tax by companies)
ITNS 281 For making payment of TDS/TCS by corporate and non-corporate deductors/collectors
ITNS 282 For making payment of Securities Transaction Tax, Wealth Tax and other direct taxes.
ITNS 284For making payment of income-tax and corporate tax (i.e. income-tax by companies) in case of undisclosed foreign Income and Assets.
Form No. 26QB For making payment of tax deducted at source in case of immovable property.

e-Payment procedure

Given below is the overview of the procedure to be followed while making e-payment of direct taxes:

  • The e-payment gateway can be approached from www.tin-nsdl.com
  • Open the respective chalan.
  • After selecting the correct challan, the screen for providing details will be displayed, the taxpayer should provide the correct details in the challan (as discussed earlier).
  • After providing all the requisite details correctly along with the correct Codes, the taxpayer should select his bank from the dropdown provided in the screen (i.e. the selection of the bank from which he wishes to make the payment).
  • After selecting the applicable bank, the taxpayer should input the verification Code appearing on the screen.
  • After providing the verification Code the taxpayer should click on the proceed button provided on the screen.
  • On clicking on the proceed button, a new page will be displayed containing the details provided by the taxpayer in the Challan and the name of the taxpayer as per the data base of Income-tax Department will be displayed. The name will be displayed from the PAN/TAN database with the Department. In case of Form 26QB the name of the transferor and transferee will be displayed.
  • If the name and other details as displayed on the screen are correct then the taxpayer can proceed for making payment by clicking on the submit to bank button provided on the screen.
  • On submitting the challan to the bank, the gateway of the bank will be displayed on the screen and the taxpayer has to login to his account and input the details of tax, interest, cess, penalty, etc., to be paid.
  • After providing the details he should verify the details once again to check the correctness and then should submit the challan to bank for effecting payment.
  • On successful completion of the transaction, the challan of payment (i.e., receipt of payment) will be generated and will be displayed on the screen.
  • Challan will contain Challan Identification Number (CIN) and other details. The taxpayer should preserve the hard copy as well as soft copy of the Challan for his records and for further requirements.

Contact details for any assistance

While making e-payment, if the taxpayer faces any problem at the NSDL website, he should contact the TIN call center. While making e-payment, if the taxpayer faces any problem at the payment gateway of his bank, he should contact his bank. For more details on procedure of e-payment, visit www.tin-nsdl.com