Paper work: Paying tax online

E-payment is a facility that can be used to pay income tax through the Internet via Net banking. The amount of tax gets debited from the bank account electronically. To be able to use this service, the taxpayer’s bank should be one of those authorised to provide the facility and he should have registered for Net banking.

In case a bank does not have an online payment facility or is not an authorised bank, electronic payment of tax can be made from the account of any other person who has an account with the authorised bank having online facility. However, the taxpayer must quote his PAN in the challan. The list of banks providing this facility is available at 'tinyurl.com/c4dqftd'.

NSDL TIN site

The NSDL Tax Information Network (TIN) Website can be accessed at 'tinyurl.com/33nrceb' and 'tinyurl.com/cbm6fzs' for service tax, or by logging on to the Net banking facility of the bank to make online tax payment. Select the relevant challan for tax payment or enter the assessee code as applicable.

Personal details

In the challan, select the data pertaining to the taxpayer, tax head, assessment year, type of payment and the bank name from the dropdown provided. In case of service tax payment, accounting codes have to be selected for the payment.

Payment of taxes

The TIN system will direct the taxpayer to Net banking facility of the bank. The tax payable and the bank account number need to be entered and confirmed to proceed with the payment.

Challan number

Taxpayers receive an immediate, confirmed receipt in the form of an electronic challan counterfoil having a Challan Identification Number (CIN). This form can be printed or saved.
Points to note

The Challan Identification Number or CIN should be quoted in the income tax return as proof of having paid the tax.
The online bank statement can be checked to verify the tax payment.

By using the e-payment facility, taxpayers can get an extended deadline for payments. These will differ from bank to bank.

The content on this page is courtesy Centre for Investment Education and Learning (CIEL).