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E-Payment of Income Tax

Anil Kumar Agarwala (CA) (67 Points)

13 April 2008

E-Payment is now madatory through the new Rule 125.

125. (1) The following persons shall pay tax electronically on or after the 1st day of April, 2008:-

(a) a company; and (b) a person (other than a company), to whom provisions of section 44AB are applicable.

No doubt this will be greatly beneficial for all. However, there are assessees at places where internet access is not readily available. Again, in these early days, many assessees could have already paid taxes through the non-electronic mode, through ignorance or oversight, although they are mandatorily required to e-pay their taxes.

What would be the consequences of such non-compliance?

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2 Replies

Chetan (30 Points)
Replied 14 April 2008

payment of TDS is also covered under this?

Hari Venkata Ramana (M.Com, AICWA) (124 Points)
Replied 14 April 2008

Anil Sab,

Enactment of Mandatory e-payment is a welcoming step. But at the same time the law makers should have through of mechanasim for e-payment.

My experience is that, even established banks like SBI, ICICI are not able to give prompt service for Corporate Internet Bank customers. We have been facing lot of problems with these banks just for making Service tax payment every 5th. In fact we have sleep less 5th day of the months to get the trnasactions throughed on that day itself. Some times we have paid tax on next day having failed to get the service from these banks. I am afraid whether department will initiate penal action in these instances.

Finally I would like to say that, the banking mechanism should be fool proof first to serve the customer to remit his tax online by the due date itself. otherwise the tax payer will be in trouble for complying this mandatory requirement and sometime he will be penalised for not fault of him.

I hope u agree with me.

Regards,