How to Pay Your Income Tax Online - Benefits, Authorized Banks

Step 1:  Visit the official website of Income Tax Department.

Step 2:  Now, under the 'Quick Links' menu, Select 'e-pay tax' option.

Step 3: Now, enter your PAN/TAN, Mobile Number and click on 'Continue'

Step 4: Enter the 'OTP' received on your mobile number and click on 'Continue'

Step 5: In the next page, select  'Income Tax' box  and click on 'Proceed'

Step 6: Now, select 'Assessment year as '2024-25' and type of Payment mode as 'Self-Assessment Tax (300)' and click on 'Proceed'.

Step 7: Then, Enter the Tax Payment Details and Mode of Payment.

Step 8: On doing that, you will need to confirm the information provided on the previous page is correct and confirm by clicking on 'pay now' button.

Step 9: Enter the captcha code displayed on the screen and click on ‘Proceed’.

Step 10: Now, click on the ‘Submit to the bank’ button.

Step 11: Once the payment is made, a receipt will be generated and also receive a confirmation e-Mail and an SMS, which includes details like the amount paid as tax, BSR code, challan serial number, date of challan etc.

List of Authorized Banks for Tax Payment Online

The list of Authorised banks which are accept Online Tax Payments:

1. Axis Bank
2. Bandhan Bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Canara Bank
7. Central Bank of India
8. City Union Bank
9. DCB Bank
10. Federal Bank
11. HDFC Bank
12. ICICI Bank
13. IDBI Bank
14. Indian Bank
15. Indian Overseas Bank
16. IndusInd Bank
17. Jammu & Kashmir Bank
18. Karur Vysya Bank
19. Kotak Mahindra Bank
20. Karnataka Bank
21. Punjab National Bank
22. Punjab & Sind Bank
23. RBL Bank
24. State Bank of India
25. South Indian Bank
26. UCO Bank
27. Union Bank
28. Dhanlaxmi Bank

Benefits of Paying Income Tax Online

The benefits of paying income tax online are as follows:

1. Convenience: Paying income tax online allows taxpayers to complete the process from the comfort of their own homes. This eliminates the need to visit a physical tax office and wait in line, saving both time and effort.
2. Ease of Tracking: Online platforms provide taxpayers with a clear record of their tax payments, making it easier to track and manage their financial obligations. This can be particularly helpful during tax season or when filing tax returns.
3. Secure and Efficient: Online payment systems for income tax are designed to be secure, ensuring the confidentiality of personal information and financial transactions. Additionally, online payments are often processed quickly, allowing taxpayers to meet deadlines and avoid penalties.
4. Faster Processing: Online tax payments are processed more quickly compared to traditional methods. This means that your payment will be received and processed by the tax authorities in a shorter amount of time. This means your payment will be received and processed by the tax authorities in a shorter time.
5. Accuracy: Online tax payment systems often have built-in error-checking mechanisms, reducing the chances of making mistakes when entering payment details. This helps ensure that your tax payment is accurate and avoids any potential penalties or delays.

Eligibility of Paying Tax Online

In order to be eligible for Paying tax online, you need to make sure that you meet the eligibility criteria listed as per the Income Tax Act. Here are the eligibility criteria to pay tax online:

1. Indian citizen having an annual income of Rs.2.5 lakh or more

1. Annual income should be more than Rs.3 lakh and Rs.5 lakh for taxpayers above 60 years and 80 years, respectively

Following candidates are eligible for paying tax online:

1. Firm that falls under guidelines of Section 44AB or co-operative society

1. Body of Individuals (BOI)

1. Association of Persons (AOP)
2. Artificial judicial person
3. Local authority (ITR 5)

1. Indian resident having property or financial interest in an entity.
2. Indian resident with signing authority of any account held outside India.

1. If you claim tax relief under Sections 90 and 90A or claimed deductions as per Section 91.
2. If an assessee responsible for producing returns under Section 139 (4B) (ITR 7).

1. Any company/companies, or any corporate assesses.

Documents required for paying Income Tax Online

Given below is the list of documents you will have to submit in order to successfully pay your income tax online:

• Form 16
• Salary slips and bank statement
• Form 16A, Form 16 B, or Form 16C
• Interest certificates issued by bank or post office
• Form 26AS
• Tax saving investment proof
• Deductions under Section 80D to Section 80U
• Aadhaar Card
• PAN Card
• Home loan statement from bank or Non-Banking Financial Companies (NBFC)
• Capital gain on selling property and/or mutual funds

How to Pay Tax Online after Generating a New CRN – Post Login Service

Given below are the step-by-step process to pay after generating a new CRN:

1. Visit the e-Filing portal of income tax and login using your credentials.

1. Go to the dashboard and click on ‘e-File’.
2. Next, click on ‘e-Pay Tax’.
3. You will be redirected to the ePay tax page where you have to click on ‘New Payment’ to do the online payment.
4. Next, click on the ‘Proceed’ option.
5. Once you have selected the applicable Tax Payment tile, choose Assessment year, minor head and other details.
6. Next, click on ‘Continue’.
7. On the new page, add the breakup of total tax payment amount and click on ‘Continue’.
8. To make the payment, choose the ‘Payment Gateway Mode’ and click on ‘Continue’.
9. You can click on ‘Preview’ to preview the entire page to verify your details and click on ‘Pay Now’.
10. Read the terms and conditions and click on ‘Submit to Bank’ where you will be redirected to your preferred payment gateway to make the payment.
11. Once the payment is done, you will receive a confirmation message at your registered mobile number or email ID.

How to Pay Tax Online Without Logging into the e-Filing Portal – Pre-Login Service

The following are the steps to pay tax without logging into the e-filing portal:

1. Visit the income tax e-filing portal and click on ‘e-Pay Tax’.

1. Next, enter all your required details and click on ‘Continue’.

1. You will receive a One Time Password (OTP) at your registered mobile number.

1. Enter the OTP that you have received and click on ‘Continue’.

1. You will be able to see your PAN/ TAN and masked name on the screen.

1. Next, click on ‘Continue’.

1. You will be redirected to the ‘e-Pay Tax’ page.

1. Now, click on ‘Proceed’ on a tax payment category.

1. Once you have selected the applicable tax payment tile, choose your Assessment Year, Minor head, and other details.

1. Click on ‘Continue’.

1. You will be redirected to the ‘Add Tax Breakup Details’ page where you need to add the breakup of the total tax payment amount.

1. Now, click on ‘Continue’.

1. Choose your preferred payment mode and click on ‘Continue’.

1. In the preview mode, you will be able to verify all your details and click on ‘Pay Now’ to make the payment.

1. Once the payment is done, you will receive a confirmation SMS and an email at your registered mobile number and email ID.

Method to Pay your Tax Offline

The following are the steps to pay tax through offline mode: 

1. Visit the nearest branch of your bank and ask for an applicable challan form. In this case, you will be asking for Challan 280.
2. Fill in the challan form. Make sure all the details filled in by you are correct.
3. Go to the bank's counter and submit the form along with the tax amount payable.
4. The amount can be paid either in cash or cheque. The bank may not be willing to accept a large amount in cash, hence it is recommended you make the payment via cheque. If you are paying through cheque, ensure it is in favor of the 'Income Tax Department'.
5. The bank official will take the money, and tear up a portion of the challan form, stamp it and give it to you. This should be kept safely with you as it is proof that you have paid your tax.

It may take up to 10 days for the payment of your tax to reflect on your Form 26AS. The payment of your tax on Form 26AS will be reflected as either Advance Tax or Self-assessment tax.

Working of Online Tax Payment

The payment of tax online is dependent on certain elements which are mentioned below in detail:

1. Permanent Account Number (PAN): You must have a valid PAN Card issued in your name to pay your income tax. The PAN card contains the 10-digit alpha-numeric number called PAN. Moreover, the PAN number is also used to log in to the Income Tax Returns (ITR) portal. Your PAN is the most important component if you successfully wish to pay your income tax online.
2. TAN: TAN better known as Tax Deduction and Collection Account Number is another mandatory requirement for the successful payment of your income tax. As per the Income Tax Act, 1961, the Tax Deduction at Source (TDS) is deducted by the payer before the payment is made to the beneficiary and then submitted to the IT department. It is mandatory for individuals and organisations involved in such types of payments to have TAN.
3. E-payment: If you hold a PAN and TAN then you can successfully make direct tax payments online through various online portals.
4. OLTAS: Online Tax Accounting System (OLTAS) is the database which helps the Income Tax Department to manage the collection of tax from all over the country.
5. ERACS: Electronic Return Acceptance and Consolidation System (ERACS) is the interface between the taxpayer and a web-based utility for uploading of TDS, Tax Collection at Source (TCS), and Annual Information Return (AIR) on the TIN's central system.