As you may know that income tax payment online would be mandatory from 1/04/08
As per press release and rule amended there after the following person are required to deposite Income tax online
2.person other than corporate but covered under section 44ab(compulsory Tax audit)
No minimum limit has been suggested in press release which i think is not correct and unjustified for small & medium business.In my view at least 100000 tax limit should be there,means the person who's tax payment is less than 100000 in a year can be pay taxes either online or off line .
Moreover it has been also clarified that epayment can be made through debit or credit card.
So after this amendment ,one may also interested in how to make e payment of taxes through internet.
in my view internet payment is easier than manual payment(deposit in bank branch).The basic advantages are given below.
- In e payment of taxes ,there is no need to issue a cheque or deposit cash for taxes.
- No need to download software or purchase income tax challan form.
- Your Pan /Tan will be verified from income tax database .so less risk for wrong deposit of taxes
- No Q,instant receipt of challan
- chances of uploading wrong data by Bank Employees will reduced,however uploading wrong data by you can not be rules out.
and there are other benefit also. Now lets know how to make e payment of tax.
presently following banks are authorize to receive payment through internet for income tax .i.e
- Axis Bank
- State Bank of India
- Punjab National Bank
- Indian Overseas Bank
- Canara Bank
- Indian Bank
- Bank of India
- Corporation Bank
- State Bank of Bikaner & Jaipur
- State Bank of Travancore
- State Bank of Indore
- Vijaya Bank
- HDFC Bank
- Oriental Bank of Commerce
- State Bank of Patiala
- Bank of Baroda
- IDBI Bank
- State Bank of Mysore
- Bank of Maharashtra
- State Bank of Hyderabad
- State Bank of Saurashtra
- Union Bank of India
- Allahabad Bank
- Dena Bank
- Syndicate Bank
- ICICI Bank
you can make payment of taxes online by one of the two gateways.
- Start the process from NSDL/INCOME TAX web site
- Start the Process From you bank website.
lets learn Start the process from NSDL/INCOME TAX web site
- click the above link & than select link given at bottom of banks name
- select the appropriate challan form from 280,281,282,283
- fill the the selected form and select the bank from which you want to transfer funds
- click submit
- a message will appear"
For the TAN/pan given by you above, the name as per Income Tax Department database is '...........................................................................................'. If the name is right, then click on "Submit to the bank"
- if your name is matched with income tax data base than click the submit to bank button otherwise check your pan/tan or correct the name filled by you
- you will lead to your net banking site ,login your self and confirm the payment .
- a e receipt will be genrated ,save it for future use.
- your e-payment process is complete now
Note:before confirming the data be sure that you have filled the data correct otherwise it will be difficulty for you to correct the data and have to visit th AO office and bank branches various times
you can check frequently asked question about e payment from here
What is e-tax payment?
Ans. This is a facility provided to the taxpayers to make income tax payments through internet using net-banking facility
Can I use this facility to pay income tax?
Ans. You can, if;
a) You have a bank account with net-banking facility, and
b) Your bank is amongst the banks that provide the e-tax payment facility.
in my opinion you can also use your friends account to make such payment after payment return money to friend by cheque.
How do I know whether my bank provides this facility?
Ans. The list of the banks providing this facility is available on NSDL-TIN website. Alternatively, you may get the information from your bank.
What is the procedure for entering the required data on the screen for paying tax online?
Ans. Log on to the NSDL-TIN website. Click on the icon 'Pay tax online'. Choose the required challan.
After choosing the required challan you will be directed to the screen for entering the following data:
- PAN for non-TDS payments and TAN for TDS payments
- Name and address of the taxpayer
- Assessment Year
- Major Head Code
- Minor Head Code
- Type of Payment
In case of challan no. 280, 282 and 283, the Permanent Account Number (PAN) needs to be entered. In case of challan no. 281 Tax deduction Account Number (TAN) needs to be entered.
Please ensure that you enter PAN/TAN correctly, as this is extremely important for further processing.
The system will check the validity of PAN/TAN. In case PAN/TAN is not available in the database of the Income tax Department then you cannot proceed with the payment of tax.
After entering the required data, select your bank through which the tax will be paid. Select your bank from the list of banks providing this facility.
Once you have completed this, click on PROCEED button. TIN system will display the contents you have entered along with the "name" appearing in the ITD database with respect to PAN/TAN entered by you.
What is the procedure after entering the required data?
You can now verify the details entered by you. In case you have made a mistake in data entry, you can correct the same. If your name as per ITD database displayed on the screen is right and all other information is correct, click on the SUBMIT button to reach the net-banking site provided by your bank.
What is the procedure after being directed to the net-banking site of my bank?
TIN system will direct you to the net-banking facility of your bank. You will have to log on to the net banking site of your bank using the login ID and password/PIN provided by the bank. The particulars entered by you at the TIN website will be displayed again.
You will now be required to enter the amount of tax you intend to pay and also select your bank account number from where you intend to pay the tax. After verifying the correctness, you can proceed with confirming the payment.
What will happen after I confirm the payment of tax at my bank's site?
Your bank will process the transaction online by debiting the bank account indicated by you and issue an acknowledgment indicating the Challan Identification Number (CIN). You can verify the status of the challan in the "Challan Status Inquiry" at NSDL-TIN website using CIN after a week after making the payment.
How can I know that I have completed tax payment using this facility?
Apart from the CIN given to you, you can check your online bank statement to verify the tax payment.
Do I have to attach the acknowledgment counterfoil with my return?
No, it will be considered sufficient proof if you quote your Challan Identification Number (CIN) as mentioned in your counterfoil in your return.
What are the timings for making payment through internet?
You will have to check the net-banking webpage of your bank's website for this information.
in my view 24 x 7.but it can be reduced to time upto 8.00 on last date or due date as it has been done by RBI in case of deposite of service tax.
How secure is the transmission of data to the website for e-tax payment?
All transmission through NSDL-TIN website is encrypted and is with Secure Socket Layer (SSL) authentication. With respect to the banks, it depends on the security measures provided by the bank for net-banking.
How does this system of payment of taxes through internet benefit me as a taxpayer?
This system is beneficial to you as you are not required to personally visit the bank to make the payments. Payment can be made electronically at your convenience from any place where an internet facility is available e.g. your office, residence, etc. Further, you get the Challan Identification Number (CIN) online, which is required by you when you file your return.