Online Income Tax Payment Steps :

Step 1: Visit the Income Tax Network website

Step 2: Go to the option “CHALLAN NO./ITNS 280” click on the “Proceed” button. Income Tax Network website

Step 3: Fill the Challan No./ITNS 280 Details. Please keep in mind:

  • Tax Applicable : Select option (0021)INCOME-TAX (OTHER THAN COMPANIES) incase of individuals.
  • Type of Payment : Select the relevant tax payment.This table will help you determine the applicable option.
    Type Of Payment Applicability
    (100) Advance Tax It is required to be paid during the financial year, when your estimated tax liability is more than Rs 10,000. However, as salaried employees are not mandatorily required to pay advance tax on salary income, as their TDS is already deducted.
    (102) Surtax Practically, this option is rarely used at the time of making tax payment.
    (106) Tax on Distributed Profit It is required to be paid by the companies on the dividends.
    (107) Tax on Distributed Income It is applicable in case of Buyback of shares by the Company from the Shareholders. Commonly, this is applicable when Mutual Fund distributes the Income to the Unit holders.
    (300) Self Assessment Tax It is the tax that you pay after the end of the F.Y. but before filing the return, when you have a tax payable.
    (400) Tax on Regular Assessment It is to be paid when you get a demand notice from the Tax Department. This is normally used after the order passed under scrutiny assessment or demand under the intimation received as per section 143(1).
  • Mode Of Payment : Choose how you want to pay using your debit card/net banking.Select the bank from the drop down menu.
  • Permanent Account No : Enter the PAN No. of the person for whom tax payment is done.
  • Assessment Year : Carefully select the year for which you are paying taxes.
  • Contact Details : Enter taxpayer’s address, email id and mobile no.
  • Captcha Code : Enter Captcha Code and click on the “Proceed” button.

Step 4: Then a confirmation window with a summary of your details will be shown. Re-check all your details carefully & then click on “Submit To The Bank” button and then click on “Edit” if required. challan 280

Step 5: You’ll be redirected to the Net Banking Page.Login to your account.
Here, you need to enter your tax payment details like Tax, Surcharge, Interest etc. However, you can leave surcharge, education cess, interest and penalty blank.
Then click on the “Make Payment”option. Make Payment

Step 6 : Once the payment is cleared, Challan 280 will be generated. This challan acts as a receipt of payment of the tax done by you. While filing your ITR, you need to enter the challan details like Amount, BSR Code, Challan Serial No. under the prepaid taxes column. challan details

Offline Income Tax Payment steps

For people who are unable to pay taxes online, they can pay taxes by visiting their respective bank branch.

  • Visit your branch and ask for challan 280.Alternatively, download challan 280 online and fill it before visiting the branch inorder to save time. The details explained are the same as explained in the online steps.
  • Now, go to the relevant counter and ask to deposit the challan alongwith the money.It is always advised to make payment via cheque rather than cash.
  • Bank official will give you the receipt after entering the payment details and stamping it.

Tip : Keep the tax receipt properly. You can also verify the amount of taxes paid by checking your Form 26 AS.Generally it takes 10 -15 days for data to be updated in Form 26 AS.

Things to remember while paying taxes

It is observed that people generally make mistakes at the time of payment of taxes. So, take a note of these points while paying taxes :

  • Select the correct AY : Many people make mistakes at the time of selection of the assessment year. They often confuse the financial year with assessment year. Remember assessment year is a year succeeding the financial year.
  • Choose the right tax code : Often people choose the wrong code under “tax applicable” and “type of payment”.If you select the wrong code then tax payment will not be reflected in your account with the tax department, i.e. 26AS.

Tip : Keep the tax receipt properly. You can also verify the amount of taxes paid by checking your Form 26 AS.Generally it takes 10 -15 days for data to be updated in Form 26 AS.

We hope our guide has helped you in online payment of your taxes.At Tax2Win, it is our constant effort to simplify return filing procedures. For any help, reach out to our eCAs. For any Further queries Contact us!!!

Frequently Asked Questions

Q- Is it mandatory to pay tax online?

Ans: Online income tax payment is mandatory for all companies and all non-corporate taxpayers covered in audit under section 44AB.

Q- What should I do if my bank is not authorised for e-tax?

Ans: In case your bank is not authorized to make e-payment then,you can use the account of any other person whose bank is authorised to provide the same facility.

Q- What is the timing for paying online?

Ans: For this purpose an individual needs to check webpage of netbanking.Generally it is 15-30min.

Q- I misplaced my counterfoil. What should I do?

Ans: Banks provide online facilities for regeneration of challan on their website in case counterfoil is misplaced.

Q- What should I do if my bank name is not visible on NSDL E-gov website?

Ans: Kindly contact TIN helpline centre at 020 - 27218080 or you can also send an email on [email protected] (Please indicate the subject of the mail as Online Payment of Direct Tax – Bank Name is not present).

Q- What if my account gets debited twice for the same transaction?

Ans: If during the transaction, or after completing the transaction bank site encountered any error or get disconnected before generating Taxpayer counterfoil, then instead of doing the same transaction again, kindly check your account. If the account has been debited, then contact your bank for the taxpayer’s counterfoil. Please note that, in the above case, do not make the same transaction again which results in account being debited more than once for the same e-tax transaction.

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.