In the last two years, the Income Tax department has taken several steps to ensure that the process of filing tax returns (ITR) is simpler and easier for individuals. . One of these changes is the introduction of a new way of paying taxes.

Earlier, taxpayers could pay taxes online using a credit card 7 issued by an authorized bank or through the website of an authorized bank 16 through NSDL website. There have been several banks (eg Bank of India) which are migrating from NSDL to e-Pay Tax facility on e-Filing portal for tax payment from now on. Taxpayers who did not have accounts with authorized banks faced difficulties in paying taxes.

Now to help the taxpayers, the e-pay tax provision has been enabled in the income tax e-filing portal. The new infrastructure enables payment of taxes through debit/credit card, net banking facilities, bank payment counters, UPI and RTGS / NEFT. Currently, there are 3 banks authorized for e-pay tax option, namely Bank of India, Federal Bank and Kotak Mahindra Bank. Note that only Kotak Mahindra Bank Payment Gateway provides option to pay tax through popular Apps like Gpay, Amazon Pay, BMIP, Phonepe, Paytm, etc.).

How to pay tax through e-filing portal of income tax

The e-pay option on the income tax e-filing website is similar to the -NSDL facility. Therefore, most taxpayers can easily navigate through the process. Taxpayers can file taxes using the e-pay tax option either by logging into the e-filing portal or not.

In the income tax e-filing portal, taxpayers can pay advance tax, self assessment tax, statutory assessment tax, TDS on rent/sale of immovable property/payment to contractors and professionals, penalty or interest on TDS on rent/sale of immovable property/payment to contractors and professionals, tax equalization, securities tax, sales tax, wealth tax, profit tax, banking tax, interest tax, etc.

For example, the extensive process of ‘advance tax payment’ using various payment methods through the e-pay tax option on the Income Tax portal credits are listed below:

Step 1: Log in to the e-filing portal using your username and password

Step 2: Select the “e-pay tax” option in the “e-file” menu and click on the ‘New payment’ option

Step 3: Click “Continue” for the type of tax you want to pay ie, income tax

Step 4: Select the assessment year and select your tax payment i.e. AY 2023-24 and advance tax and click “continue”

Step 5: Give the tax break, you want to pay ie, tax, surcharge, cess, etc. and click “continue”

Step 6: You will find 5 options to pay tax namely net banking, debit card, payment counter, RTGS/NEFT and customs gateway. Please select the option.

Debit card

Step 7: This option is not yet available to authorized banks. However, it will probably work in the same way as it does on the NSDL website

Net Banking

Step 7: You can choose one of the banks authorized to pay taxes on net banking and click “continue”.

Step 8: Click “Pay Now” or “Continue” if the details shown in the overview are correct.

Step 9: You will be taken to the bank login page. Complete the payment using the bank login credentials.

Pay at the Bank counter

Step 7: With this option, you can pay at an authorized bank through cash, check and draft. Select the authorized bank, the payment method and click “continue”.

Step 8: Click “Pay Now” or “Continue” if the details shown in the overview are correct.

Step 9: A copy of the signed Challan along with the payment instrument needs to be presented before the selected authorized Bank branch within 15 days for payment.

NEFT/RTGS

Step 7: You can use any bank having RTGS/NEFT facility to pay tax through online branch payment. Select RTGS / NEFT and click on “Continue”.

Step 8: Click “Pay Now” or “Continue” if the details shown in the overview are correct.

Step 9: The signed copy of the Challan Form which is produced needs to be presented before the desired branch of the Bank within 15 days for payment.

Payment gateway

Step 7: You can use any of the two banks (federal bank and Kotak Mahindra Bank) to remit taxes using various options. Payment can be made through credit/debit card, net banking or UPI. Select the payment gateway and click “Continue”.

Step 8: Click “Pay Now” or “Continue” if the details shown in the overview are correct.

Step 9: After accepting the terms and conditions, you will be redirected to the respective payment gateway. Choose the appropriate payment method to pay the tax and pay. Only Rupay, Visa and Mastercard cards are accepted. For net banking, Federal Bank provides 38 banking options whereas Kotak provides 13 banking options. For UPI payments, Kotak Mahindra Bank Payment Gateway provides an option to pay taxes through PSP popular (Gpay, Amazon Pay, BMIP, Phonepe, Paytm, etc.) with UPI id option.

Step 10: On successful tax payment you will get the challan. The taxpayer will receive a confirmation message on the email ID and mobile number registered in the e-Filing portal.

Payment of tax through Income Tax Gateway

As against zero charges for filing tax through NSDL website, there may be charges for filing tax through e-filing tax portal . However, the charges you will be charged will depend on the option you choose.

If you choose to file taxes using the three online banking options, there will be no charge. Likewise for sending taxes by credit card or over the counter at an authorized bank there will be no additional charges.

details
  • Debit card
  • Federal Bank Net Banking
  • Pay at the Bank counter
  • NEFT / RTGS
  • Payment gateway
  • Transaction fees through Federal Bank Gateway
  • Nil
  • Nil
  • Nil
  • The transaction fee may be applied according to the terms and conditions set by the respective bank
  • A processing fee applies to payments made through a federal bank. For credit card – 0.85% of payment and for net banking, Rs 5 to Rs 12. GST is also applicable.
  • If you choose to send taxes through a payment gateway, the charges that will be imposed depend on the gateway bank you choose. If you have chosen the Kotak Mahindra Bank portal, there is no charge, regardless of whether you have chosen the bank, UPI or credit card to send taxes. On the other hand, if you choose the Federal Bank payment gateway, the charges are as follows:

    Payment method fee*
    Net Banking HDFC Bank- Rs 12

    ICICI Bank – Rs 9

    SBI Bank – Rs 7

    Axis Bank – Rs 7

    Other Banks – Rs 5

    Debit card Nil
    Credit card 0.85%
    UPI Nil

    *GST at 18% will be added.

    Advantages of the e-pay option:

    • It gives the option to pay taxes in different banks
    • The status of a successful payment will be displayed in the payment history tab.
    • A confirmation message will be sent to the taxpayer’s email ID and mobile number registered in the e-filing portal.
    • It helps in avoiding errors like wrong PAN number/entering wrong details like selecting small head. There is no requirement to enter PAN number, if you pay tax by accessing e-filing portal. There is no option to pay advance tax if you opt for earlier assessment and no option to pay self assessment tax, if you opt for last assessment year.
    • It provides convenient options like paying taxes later / enabling to save drafts of challans. If there is a later payment option, tax payment must be made within 15 days, otherwise the option expires.

    (Aarti Raote, Partner, Deloitte India and Vinod Raj, Managing Director, Deloitte Haskins & Sells, LLP.
    )



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