How to Pay Your Income Tax Challan Online?

How to e-Pay Tax online?

Here’s a step-by-step guide on how to pay taxes on the Income Tax Portal without logging in:

Step 1: Navigating to ‘e-Pay Tax’ Section

Go to the Income Tax Website.
Find the ‘Quick Links’ area on the left side of the homepage.
Click on “e-Pay Tax” or type “e-Pay Tax” into the search bar to find it.

Step 2: Enter PAN/TAN and Mobile Number

Enter your PAN, and then enter it again to make sure.
Enter your phone number, then click “Continue.”

Enter the 6-digit OTP that was sent to your phone, and then click “Continue.”

Step 3: Select the correct Assessment Year and Payment Type

Select the box that says “Income Tax” and then click “Proceed.”

Choose “2023-24” from the “Assessment Year” drop-down menu.
Choose “Self-Assessment Tax (300)” under “Type of Payment” and click ‘Continue’.

Step 4: Enter Tax Payment Details

Enter the correct amounts for each payment under the correct headings.
For the right numbers, you can look at the pre-filled challan on Cleartax.

Step 5: Select the Payment Method

Select the payment method and bank you want to use to pay your taxes, then click “Continue.”
You can pay with online banking, a debit card, a credit card, RTGS/NEFT, UPI, or at the bank counter.

Step 6: Verify Payment Information

After you click “Continue,” you can look over the terms of the challan.
Check the payment information twice to make sure it’s correct.
Click “Pay Now” to pay, or “Edit” to change the information.

Step 7: Submit the Payment

To agree to the Terms and Conditions, click the box.
To continue with the payment, click “Submit to Bank.”

Step 8: Receive Payment Confirmation

Once your tax payment has been properly sent, you will get a confirmation.

Note: Don’t forget to download the challan because you’ll need the BSR code and Challan number to finish making the return.

Step 9: Declaring Tax Paid Details

After you pay the tax, you should change the information about the payment on Cleartax.
Go to the ‘Tax Summary’ page and click on ‘Add Paid Tax Details’.

You can upload the challan or type in the information by manually.

When you’re done, your status will change to “taxes paid.”
Go to Cleartax to e-file and e-verify your return.

Banks Authorised for e-Tax Payment

Here is an updated list of banks that can be found on the e-filing site for e-payment of taxes as of April 28, 2023:

Axis Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
City Union Bank
Federal Bank
HDFC Bank
ICICI Bank
IDBI Bank
Indian Bank
Indian Overseas Bank
IndusInd Bank
Jammu and Kashmir Bank
Karur Vysya Bank
Kotak Mahindra Bank
Punjab National Bank
Punjab & Sind Bank
RBL Bank
State Bank of India
UCO BANK
Union Bank of India

Benefits of e-Tax Payment

Having the option to pay taxes online has definitely made paying taxes a lot easier. Some of the benefits of e-Payments are the following:

It saves time and can be done at a person’s own convenience, avoiding long lines.
Tax department records are instantly updated, so the taxpayer doesn’t have to do anything else to make sure that records are up-to-date.
Instantaneous receipt of tax payment
Checking the progress of a tax payment can be done online.

Eligibility for e-Tax Payment

From April 1, 2008, the following taxpayers have to pay their taxes online:

All the corporate assesses.
All assesses (other than company) to who the provisions of section 44AB of the Income Tax Act, 1961 are applicable.

Self-Assessment Tax

You can’t give your tax return to the tax department until you’ve paid all of your taxes. When you file your tax return, you may see that you owe tax. This tax is called self-assessment tax, and you can pay it online to make sure your e-filing goes through.

If you pay your tax after March 31, you should also pay the interest due under Sections 234B and 234C. When you e-file your tax return with Cleartax, our system will tell you how much tax you need to pay. You can also have a CA check your return to make sure you paid the right amount.

Advance Tax

If your yearly tax bill is more than Rs 10,000, you must pay income tax in advance. Usually, TDS reductions take care of these income tax payments for salaried people.

Situations When You Have to Pay Advance Tax:

You are salaried but have high income from interest or capital gains or rental income
You are a freelancer
You are running a business

How to Calculate and Pay Advance Tax?

Add up all of your cash. Include things like pay, interest, capital gains, etc., just like when you file your income tax return. If you work as an independent, add up all the money you make from all your clients in a year and subtract the money you spend. Rent for your office, internet bills, cell phone bills, computer depreciation, trip costs, etc. are some expenses. Find out more about freelancing and taxes.

How to Determine and Allow Deductions

On your tax return, you take your total income less any expenses you want to claim. This gives you your taxable income. Section 80C, 80D, 80E, or any other benefits you want to claim Sections 80C, 80CCC, and 80CCD have more information.

How to Calculate Tax Due on Total Income

Use your taxable income and the most recent income tax slab rates to figure out how much income tax you owe. Reduce your total tax due by any TDS that may have been taken out. And make sure you’ve paid based on these schedules. You can pay for these things on the Internet.

Our CAs can calculate your advance tax liability and help you with paying it online. Seeing a large tax outgo? Don’t worry, our CAs can help calculate your freelancing income and make sure your taxes are optimized.

Due Dates of Payment of Advance Tax for FY 2022-23

Dates	For Individuals
On or before 15th June	Up to 15% of advance tax
On or before 15th September	Up to 45% of advance tax less advance tax already paid
On or before 15th December	Up to 75% of advance tax less advance tax already paid
On or before 15th March	Up to 100% of advance tax less advance tax already paid

Non-payment of advance tax can result in penal interest levy under sections 234B and 234C.

Outstanding Demand Payment

An income tax demand letter may tell you that you need to pay your income tax. You can pay the claim online if you agree with the assessing officer and are ready to do so. It’s also known as the normal assessment tax.

Frequently Asked Questions

What is included in my total tax payable during a year?

You figure out how much income tax you owe by adding up all of your income, taking any deductions that apply, figuring out how much of your income is taxable, and then calculating your taxes at the rates that apply to your income slab. Next, a 10% surcharge would be added to your taxes if your income was between Rs 50 lakh and Rs 1 crore. If your income was more than Rs 1 crore, a 15% surcharge would be added. Also, a health and education cess of 4% of the taxes owed (plus any fees) will have to be added. If you make less than Rs 5 lakh in a year, you can get a refund under Section 87A up to Rs 12,500 or the amount of taxes you owe, whichever is less.

Is it necessary for me to pay taxes online? If not, how can I pay for it?

The law says that only companies and individuals who are subject to an audit under Section 44AB must pay their taxes online. The rest of the people can pay their taxes in cash by giving the challan to certain banks. However, you can also pay online, which is easy and saves you time.

Are there any benefits of paying taxes online?

Definitely. E-payment not only saves time, but you can also use it at any time and from anywhere. Also, when taxes are paid in person, the government doesn’t get credit for them until at least the next day. When taxes are paid online, the government gets credit right away.

What are the prerequisites for paying my taxes online?

For e-payment of taxes, make sure you are connected to the internet and that your bank account is set up for internet banking. If you don’t have online banking, you can pay someone else using their online banking account. To get the credit, you must make sure that the taxes are paid in your name and against your PAN.

What all taxes can be paid electronically?

Almost all taxes can now be paid online. The following taxes can be paid online:

a. Income tax
b. Corporate tax
c. TDS (Tax Deducted at Source)
d. TCS (Tax Collected at Source)
e. Securities Transaction Tax (STT)
f. Equalisation levy

What to do when you have selected the wrong assessment year while paying tax?

Even if you are careful when paying your taxes, you may still make a mistake, like picking the wrong assessment year when you pay. Most of the time, people make this kind of mistake because they don’t know what the term “assessment year” means. The term “assessment year” refers to the year that your taxes are calculated. To be exact, it is the year after the year you are paying taxes for. If you are paying taxes for the years 2021–22, the assessment year for this tax will be 2022–23. If you picked the wrong year for the exam, do the following:

Step 1: Put the information about your payment on your income tax return for the year, even if the assessment year you chose when you paid your taxes was wrong.
Step 2: Ask your local scoring officer to fix the mistake on the challan with the wrong assessment year. On the income tax department’s e-filing page, you can find information about your assessing officer. If you just made the payment, you have 7 days from the date of the deposit to ask the bank to fix the challan.
Step 3: When the assessing officer (AO) looks at your tax returns, he will most likely send you a warning because the details of your payments do not match the records.
Step 4: Write back to the AO and explain what went wrong with your tax payment.
Step 5: Send in a request to fix something under Section 154.
Step 6: If the AO agrees with your request for a change, he or she can make the necessary changes to your tax return. Once your return is accepted, the AO will make any changes that need to be made and then close it.