e-Payment of Tax in India

e-Payment of tax is a facility provided to the taxpayers to pay income tax payments through internet, using net-banking facility. Any one can use this facility if –he/she has a bank account with net-banking facility.

Steps to Pay Tax Online:-

Step 1

  • Log on to NSDL-TIN website www.tin-nsdl.com.
  • Click on the icon “e-payment: pay taxes online”
  • Click on ‘Click to pay tax online’
  • Select the required challan.

Step 2

After selecting the required challan, you will be directed to the online challan Form screen for entering the following data:-

  • PAN for non-TDS payments or TAN for TDS payments
  • Address of the taxpayer
  • Assessment Year or Financial Year
  • Major Head Code
  • Minor Head Code
  • Type of payment for TDS payments
  • Select the bank name from the drop down provided
  • 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/Collection Account Number (TAN) needs to be entered.

Step 3

  • After entering all the above detail, click on Proceed button. The system will check the validity of PAN/TAN.
  • If PAN/TAN is available in the database of the Income Tax Department then TIN system will display the contents you have entered along with the “Name” appearing in the ITD database with respect the PAN/TAN entered by you.

Step 4

Verification of details entered:  In case you have made a mistake in data entry, click on “Edit” to correct the same. If all the detail and name as per ITD is correct, click on “Submit” button then page is directed to the net-banking site provided by your bank.

Step 5

  • Login to the net-banking site with the user id/ password provided by the bank for net-banking purpose
  • Enter payment details at the bank site.
  • On successful payment a challan counterfoil will be displayed containing Challan Identification Number (CIN), payment details and bank name through which e-payment has been made and this counterfoil is proof of payment being made. You can verify the status of the challan in the “Challan Status Inquiry” at NSDL-TIN website using CIN after a week, after making payment.

Benefits of e-payment

  • e-Payment is beneficial as you do not require to visit the bank to make the payments.
  • It gives you convenience as Payment can be made electronically from any place where an internet facility is available e.g. your home , office, etc.