Online Tax Payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2011 So far we have been paying the Company's Income Tax, TDS online through out internet banking account.

However with changed payment authorization procedures of the company, we Intend to make the payments as per following procedure.

1) We issue a chaque to the bank with payee name as “---- Bank Account – TDS/Income Tax”
2) We present physical challan to the bank
3) Bank gives us acknowledged challan putting its stamp and challan number.

In light of the amended provisions for online payment of taxes, please let us know, whether above procedure is valid?
And Whether we will be committing any procedural default?

chetan soni

chetan soni (Expert)
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17 February 2011 If you are mandatory by the law to make the online payment of taxes then you should follow the same.

But, yes making the payment through paper challan is not illegal. It will cause you some trouble in future. Lets say the deposit date as per challan & as per income tax database may be different & on account of this u may need to pay interest on delayed payment of taxes. OR PAN mention on challan is correct but pan has made an error while uploading the same to income tax database due to which you will not see the taxes paid in your PAN account & then u may need to fight for taking the credit to your PAN account.

All this will lead to cause you some trouble in future.

I have already faced all this in past.

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C.A.Javid Patel

C.A.Javid Patel (Expert)
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17 February 2011 it is advisable to make online.

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