Back in the day, people used to pay their taxes by visiting the Income Tax department’s office. This included standing in long queues, getting documents photocopied, gathering paperwork, and more. All in all, you can say that it was tiring and time-consuming.
But can you imagine doing all that today? Thanks to technological advancements and the internet, you don’t have to. Instead, you can choose to pay your taxes online from the comfort of your home by simply using E-payment platforms.
Better yet, the Indian Income Tax Department ensures that the process for E-pay tax online is safe, secure, and completely confidential. So, whether you wish to pay income tax, advance tax, or even surtax, you can do it all online.
Are you wondering if paying taxes online has any benefits? Or if there is an eligibility criterion? Well, then you should keep reading, as we will discuss both these aspects and highlight the steps for how to pay income tax online.
- In India, you can pay taxes online by visiting NSDL’s official website or the Income Tax Department’s website.
- You can complete the payment for E-pay tax online via net banking and debit cards.
- When you pay tax online in India, it is best to keep your PAN card, Aadhar card, and bank details handy.
- To pay tax online in India, you should be a citizen of India and meet the eligibility criterion.
- E-pay tax online has several benefits, including instant fund transfers, easy application tracking, zero penalties, and more.
Quick, Simple, and Easy: Know How to Pay Income Tax Online
As you know, today, it is quick, simple, and easy to pay your income tax online. All you need is a good internet connection, a smartphone or laptop, and you’re all set. This is a great initiative by the IT department that has received praise from people across India.
However, some people find the process for E-pay tax online slightly difficult because they don’t know where to start. So, to make the process easier for you, we have highlighted the steps on how to pay income tax online below:
Visit https://www.tin-nsdl.com/ on your browser.
Look for ‘Services’ and click on it. A drop-down menu will appear, from which you have to select ‘E-Payment: Pay Taxes Online’.
The website will now direct you to a new page displaying 4 tabs. Out of the 4 tabs, press ‘Proceed’ under the tab displayed as ‘Challan No./ITNS 280’ and ‘Non-TDS/TCS’.
On the next page, look for the ‘Tax Applicable’ tab and choose ‘(0021) Income Tax (Other than Companies)’.
Provide the required details, including the type of payment.
Next, select the mode of payment that you prefer. The two options available to you are ‘Net Banking’ and ‘Debit Card’.
Select the bank name and enter your account details.
Carefully enter the security/captcha code on the screen and select ‘Proceed’.
Now you will be asked to double-check and verify the information you provided. If the details are correct, select ‘Submit to the Bank’. In case any detail is incorrect, select ‘Edit’ and make the necessary changes.
The website will direct you to the bank’s website to complete your income tax payment.
Once the payment is successful, you will receive a receipt with the payment status and all the necessary details.
So, that covers steps for E-pay tax online. But before you proceed, it is best to keep documents such as your PAN card, Aadhar card, and bank details handy. Additionally, ensure that you verify the details carefully, save a copy of the receipt, and enter the correct information, including the due amount.
Your Tax, Your Responsibility: The Eligibility Criteria for E-Pay Tax Online
Although the E-pay tax online process is time-saving and hassle-free, it has an eligibility criterion that has been set by the Income Tax Department of India. Thus, before you pay tax online, it is essential to ensure that you are eligible. And here’s everything you need to consider to check your eligibility:
- You must be a citizen of India.
- You should have an annual income of more than INR 2.5 lakhs if you are below the age of 60 years.
- If your age is more than 60 years, your annual income should amount to over INR 3 lakhs.
- If your age is above 80 years, your yearly income must be higher than INR 5 lakhs.
- You must have a corporation, Association of Persons (AOP), Body of Individuals (BOI), local authority, co-operative society, or Artificial Juridical Person that falls under Section 44AB’s guidelines.
- If you claimed deductions as per Section 91 or tax relief as per Sections 90 and 90A.
- If you are a citizen who has a financial interest in an entity.
- If you are liable to produce returns as per Section 139.
- If you are a resident who has signing authority for an account held outside India.
- If you are an Indian resident who has a property in the country.
While this sums up the eligibility criterion for E-pay tax online, you should also keep the following points in mind:
- You should have a bank account with a bank that is authorized for E-pay tax online.
- If you wish to make the tax payment through net banking, you will have to activate internet banking for your account.
Did You Know?
As per a press release by the IT department, the net collections through direct taxes for FY 2021-22 were INR 13, 63, 038 crores. Plus, there was a growth of over 48.4% from the previous year’s collections.
Helping You Through the Way: Know the Advantages of E-Pay Tax Online
Now that you know how to pay income tax online and the eligibility criteria, let’s look at a few key advantages of filing E-pay tax online:
Quick and Hassle-Free
If you’re someone who always has a tight schedule, filing E-pay tax online is the perfect option for you. You won’t have to visit the IT department’s office or drive halfway across town. Instead, you will cut down the time in half as paying taxes online is a quick process. Better yet, E-pay tax online is hassle-free, as it doesn’t involve a lot of paperwork and documentation. All you need to do is visit NSDL’s official website and follow the steps we discussed previously.
Instant Fund Transfers
When you file for E-pay tax online, you can instantly transfer funds from your bank account, which will eliminate the need to write and submit cheques. Plus, the online payment facility is available 24×7, so you can complete your payment at your convenience. Also, you get two payment options for E-pay tax online, including debit cards and net banking.
Tracking Gets Easier
Another great benefit of E-pay tax online is that you can easily track the status of your tax returns online. You can visit the Tax Information Network website to check whether your payment has been received by the Income Tax department. Additionally, the transaction ID for the payment will also be visible in your bank statement, making tracking much easier.
As you know, the Income Tax department releases a deadline for tax payments. But if your payment isn’t processed in time and you fail to meet the deadline, a penalty/fine will be charged. However, when you file E-pay tax online, the funds are transferred from your bank account immediately, leaving no room for penalties or fines.
The Process is Safe & Secure
When it comes to paying taxes online, most people are hesitant because they believe that the process is not secure. However, it is quite the opposite, as it is completely safe to pay taxes online. All your information remains confidential, including your bank account details. Plus, only you can log in to your account as there are several verification steps to be followed.
Word to Remember
Tax deductions (also known as exemptions) are expenses that can be exempted/subtracted from your gross income. Deductions are filed to reduce the taxes you pay on your income.
We’re sure you will now agree that paying taxes online is indeed hassle-free, quick, and convenient. So, what are you waiting for? Make use of this facility provided by the government and say goodbye to paperwork, documentation, and long queues!
No, it is not compulsory to pay taxes online. While the process is much quicker and easier, you can choose the offline method if you wish.
When filing E-pay tax online, you will need the following documents: PAN card, Aadhar card, bank details, salary slips, investment proof for tax saving, and the relevant form number.
If you wish to track the status of your tax payment online, you can visit the official Tax Information Network website and enter your login details.
Yes, you should always save a copy the receipt you receive after your online tax payment is complete. This is because the receipt contains important information, such as transaction date, due amount, BSR code, and the serial number of the challan.
If you mistakenly enter incorrect details while paying income tax online, you will have to visit your assessing officer at the IT department. The assessing officer will then make the necessary corrections after completing a verification process.