What is e-Tax Payment?
E-Tax Payment means electronic tax payments, which facilitate taxpayers’ payment of direct taxes online. In order to make use of the facility, the taxpayer must have a net-banking account with any of the authorized banks.
As part of its OLTAS (Online Tax Accounting System) initiative, the Income Tax Departments are collecting and maintaining records on tax paid through banks.
The IT (Income Tax) department launched an electronic payment system for taxpayers to pay direct taxes online. Now, taxpayers can either pay direct taxes physically or electronically, depending on their preferences.
For Example: 1. Taxpayers may pay directly at authorized banks by producing hard copies of the Challan, and 2. Via net-banking with any of the authorized banks.
Why Payments must be made online:
There are certain taxpayers in India who cannot pay their taxes by physical means, but must pay their taxes electronically. These taxpayers include:
- Companies of All types
- Taxpayers whose account are liable for audit under section 44AB must submit their financial statements.
There is always a benefit to choosing to pay taxes through the e-tax payment route for those who do not fall within the manadatory category. It is always recommended to use the e-payment method because it is both convenient and saves time.
E Tax Payments Requirements:
An authorized bank account with net banking functionality is required to make tax payments through e-payment. Those without a net banking account can pay via the account of someone else if they do not possess one, but the tax must still be paid on their behalf.
Benefits of e Tax Payments –
The use of e-payments as a method of paying income tax has many benefits.
- Using e-payment is simple, secure, and time-saving. It can be done wherever and whenever you want.
- Upon receiving the payment, the amount will be transferred instantly from your bank account.
- The official website of the Tax Department provides information about whether the Income Tax Department has received your tax payment.
- There will be no data entry required for the bank as the information on the e-challan will go directly to the Income Tax Department.
- Etax payments are deducted from online bank accounts immediately, and a receipt for tax payment is issued.
E-payment of Taxes
E-payment are available for the following direct taxes:
- Corporate tax
- Equalization Levy
- Securities Transaction Tax (STT)
- Tax deducted at source (TDS)
- Tax collected at the source (TCS)
- Wealth-tax and other direct taxes, like gift tax, expenditure tax, etc.
Using a Challan according to its nature in e tax payment
|Challan Number||Nature of Tax Payments|
|ITNS 280||For Companies to pay income tax and corporate tax.|
|ITNS 281||Paying TDS/TCS to corporate and non-corporate deductors or collectors.|
|ITNS 282||Payment of direct taxes, such as Wealth Tax and Securities Transaction Tax.|
|ITNS 283||Fringe benefits Tax and Banking Cash Transaction Tax payments are due.|
|ITNS 284||If you have undisclosed foreign income or assets, you must pay income tax and corporate tax.|
|ITNS 285||In order to pay the equalization levy.|
|ITNS 286||Paying under the Income Declaration Scheme, 2016|
|ITNS 287||Making payments under PMGKY (Pradhan Mantri Garib Kalyan Yojana, 2016).|
|Form no. 26QB||Immovable property tax deducted at source must be paid.|
|Form no. 26QC||Rent Payments involving tax deductions at source.|
|Form 26QD||In the Income Tax Act of 1961, Section 194-IA specifies that Tax Deducted at Source (TDS) to the government.|
|Demand Payment for Form 26QB/ 26QC/26QD as applicable||Subsequent TDS on property payment by e-tax.|
Source – https://www.tin-nsdl.com/
To pay income tax online, follow these simple 8 steps:
Step 1: Visit www.tin-nsdl.com to access the NSD-TIN website.
Step 2: To pay taxes online, go to services and select “e-payment”.
Step 3: Choose the appropriate challan, which is TNS 280 for income tax payments.
Step 4: A new page will appear asking you for the following information:
- PAN (Permanent Account Number)
- Assessment Year
- Addresses of taxpayers
- Payment Method
- Payment Modes
Step 5: A confirmation screen will appear once all the details have been entered.
Step 6: Select the bank you want to use online banking with and click on the submit button.
Step 7: You can now enter your payment details at the bank’s website by entering your online banking username and password.
Step 8: You will receive an acknowledgement with the Challan Identification Number, payments details, and bank name after making the payment on the bank’s website.
The Office of the Chief Controller of Accounts (OCA) and the Reserve Bank of India have authorized the following 27 banks to collect Etax and Service tax through internet banking (E-Payment) for all commissionerates.
e Tax Payments allowed to 27 Banks
|Sr. No.||Name of Bank||Sr. No.||Name of Bank|
|1||Allahabad Bank||14||Oriental Bank of Commerce|
|2||Bank of Baroda||15||Punjab National Bank|
|3||Bank of India||16||State Bank of Bikaner& Jaipur|
|4||Bank of Maharashtra||17||State Bank of Hyderabad|
|5||Canara Bank||18||State Bank of India|
|6||Central Bank||19||State Bank of Mysore|
|7||Corporation Bank||20||State Bank of Patiala|
|8||Dena Bank||21||State Bank of Travancore|
|9||HDFC Bank||22||Syndicate Bank|
|10||ICICI Bank||23||UCO Bank|
|11||IDBI Bank||24||Union Bank of India|
|12||Indian Bank||25||United Bank of India|
|13||Indian Overseas Bank||26||AXIS Bank|
E Tax Payments Code: Points to Remember
In order to make E-payment of income tax and corporate tax, Challan 280 needs to be filled out. Below is a list of with some details to include:
Tax codes are listed in Challan 280 in order to assist in selecting the correct tax. The following codes are provided:
- Companies must pay income tax under 0020.
- A non-corporate taxpayer pays income tax under this code 0021.
There are six types of payments described in Challan 280, and the assessee must choose the appropriate code for each one.
- Code 100 – Advance tax payment.
- Code 300 – Self-assessment tax is payable with this code.
- Code 400 – Regular assessment tax falls under this code.
- Code 106 – Taxes on distributed profits is subject to this code.
- Code 107 – Income tax on distributions is subject to this code.
- Code 102 – Surtax applies to this code.
Procedure for e-payment of Central Excise & Service Tax
A web-based payment gateway named EASIEST was launched by the Central Board of Excise and Service Tax (CBEC) in 2007 that allows assesees to pay Central Excise duties and Service Tax online. It provide accurate data on tax payments from banks for the revenue and tax payer accounting systems by interacting with their e-payment portals.
For all Central Excise and Service Tax Assesses, except in exceptional cases, electronic payment through internet banking has become mandatory with effect on October 1, 2014.
For More – Read here
Service Tax e payment Steps
Step 1: Check out > https://www.cbic.gov.in/htdocs-cbec/easiest-idx
Step 2: Now Find E-Payment (Excise & Service Tax) where you will directed to this link – https://cbec-easiest.gov.in/EST/InputPageForEPaymentServlet
Step 3: An Assessee must enter a 15-digit Assessee Code allotted by the jurisdictional Commissionerate to pay Service Tax online.
Step 4: Now Validation of Assessee codes will take place online.
Step 5: This tool displays information about the assessee like name, Address, Commissionerate code, etc. as they appear in the Assessee Code Master if the assessee code is valid.
Step 6: A duty / tax will be automatically selected using the Assessee Code, such as Excise Duty or Service tax.
Step 7: In order to pay excise or service tax, the assessee must click on the button “Select Accounting Codes for Excise” or “Select Accounting Codes for Service Tax” according to the type of duty / tax to be paid.
Step 8: A single assessee may choose up to six Accounting Codes at a time.
Step 9: The Assesssee can choose any of the banks that offer internet payment facilities in the NSDL central system once the data has been validated.
Step 10: The taxpayers will be directed to the net-banking site of the bank selected upon submission of data entered. If the taxpayer confirms the information entered into the screen, the page will appear.
Step 11: Assessee will enter challan details along with their location code (Commissionerate, Division, Range) when they submit the challan to the bank.
Step 12: Using the Bank’s username and password for net-banking, the taxpayer will access the bank’s webpage and enter payment information.
Step 13: An electronic challan counterfoil will be displayed once payment is successful and contains details of the payment, the bank name and the CIN. The counterfoil serves as proof of payment.
Step 14: Assessee can download the counterfoil from the bank’s website. An electronic acknowledgement will contain all the details that are typically found on a printed acknowledge, such as the Challan Identification Number (CIN) and bank name used to make the e-payment.
Step 15: The assessee can view the “challan status enquiry” after having paid the service tax electronically at https://onlineservices.cbec-easiest.gov.in/csi/indexl in order to ensure that the e-payment challan has been uploaded / found on the EASIEST (NSDL) website. If you are not able to find challan data on the EASIEST (NSDL) website, please contact firstname.lastname@example.org
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