How to Make E-Tax Payment? A Simplified Step-by-Step Guide 

byPriyanka JuyalLast Updated: November 25, 2024
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Key Takeaways:
  • All taxpayers can complete their income tax payment online through the e-Pay Tax option on  www.incometax.gov.in.
  • For paying income tax online, you must have a valid PAN/TAN, access to a Debit Card, Credit Card, Net banking, or UPI and a valid mobile number.
  • Benefits include: easy IT online payment status verification, instant receipt generation, automatic record updates, saving time and is convenient.

Tax payment has now become easier than ever because of the e-Tax payment option that allows all taxpayers to pay their taxes online on the official portal, www.incometax.gov.in. By using the online mode of payment, you can conveniently pay your taxes anytime and anywhere, in either pre-login mode (before logging in the e-Filing portal) or post-login mode (after logging in the e-Filing portal). For paying your taxes online, you can choose from a variety of payment methods, including Credit Card, Debit Card, Net-banking, and UPI (Unified Payments Interface).

In this blog post, we’ll walk you through the step-by-step process of paying income tax online, along with its prerequisites, eligibility criteria, documents required and benefits that makes the process easier and hassle-free.

Table of Contents Show
  1. How to Pay Income Tax Online? 
  2. Prerequisites for Paying Tax Online 
  3. Eligibility for Online Tax Payment
  4. Documents Required Online Tax Payment 

How to Pay Income Tax Online? 

Steps to Pay Tax Online- Pre-Login Service (before logging in the e-Filing portal)

Step 1: Log in to the e-Filing portal at www.incometax.gov.in using your User ID and Password.

Step 2: On the e-Pay tax page, fill your PAN/TAN number and your registered mobile number for generating OTP.

Step 3: Enter the 6-digit OTP sent to your mobile number and click “Continue.”

Step 4: After OTP verification, a success message with your PAN/TAN and masked name will appear. Click “Continue” to proceed.

Step 5: On the e-Pay Tax page, click “Proceed” on the tax payment category that applies to you.

Step 6: Choose the relevant Tax Payment tile, then select the Assessment Year, Minor Head, and any other applicable details, and click “Continue.”

Step 7: On the Add Tax Breakup Details page, enter the breakdown of the total tax amount and click “Continue.”

Step 8: Choose “Payment Gateway” mode and click “Continue.”

Step 9: Ensure to check all the details and tax breakdown and click “Pay Now.”

Step 10: Read and accept the terms and conditions, then click “Submit to Bank.” You will be redirected to the Payment Gateway’s website where you can log in or enter your Net Banking, Debit/Credit Card, or UPI details to complete the payment. Compare transaction charges (as per Annexure 1) of the five payment gateways if needed.

Note: After successful payment, you will receive a confirmation email and SMS sent to the email ID and mobile number registered with the e-Filing portal. You can download the Challan Receipt for your records. Payment details and the Challan Receipt will also be available under the Payment History tab on the e-Pay Tax page after logging in.

Steps to Pay Tax Online- Post-Login Service (after generating the new challan form)

Step 1: Go to www.incometax.gov.in and login by using your User ID and Password.

Step 2: On the Dashboard, find ‘e-File’ then click ‘e-Pay Tax’. Click on “New Payment” to start the online tax payment process.

Step 3: On the New Payment page, click “Proceed” on the tax payment option that applies to you.

Step 4: Select the appropriate Assessment Year, Minor Head, and other necessary details. Click “Continue.”

Step 5: On the Add Tax Breakup Details page, enter the breakdown of the total tax amount you need to pay. Click “Continue.”

Step 6: In the ‘Select Payment Mode’ page, choose “Payment Gateway” as your payment method mode. Click “Continue.”

Step 7: On the Preview and Make Payment page, check all your details, including the tax breakdown details. Click “Pay Now.”

Step 8: Agree to the terms and conditions and click “Submit to Bank.” You will be redirected to the Portal’s website. You can enter your Net Banking, Debit/Credit Card, or UPI details to complete the payment.

Tip: Before selecting a payment option, you may want to compare transaction charges for the five payment gateways (as per Annexure 1).

Note: After successfully making the payment, you will receive a confirmation via email and SMS sent to registered email address and mobile number. The payment details and Challan Receipt will be available under the ‘Payment History’ tab on the e-Pay Tax page.

Prerequisites for Paying Tax Online 

For Paying in Pre-Login Mode

    • Must have a valid PAN/TAN for the tax payment
    • Must have access to a Debit Card, Credit Card, Net banking, or UPI
    • Should have a valid mobile number to receive the One-Time Password (OTP)

    For Paying in Post-Login Mode

      • Must be a registered user on the e-Filing portal (www.incometax.gov.in)
      • Must have access to a Debit Card, Credit Card, Net banking, or UPI

      Eligibility for Online Tax Payment

      Starting from April 1st, 2008, the following groups are required to pay their taxes online:

      • All corporate taxpayers
      • Other taxpayers covered under Section 44AB of the Income Tax Act, 1961-
        Applies to individuals or entities (other than companies) who fall under the provisions of Section 44AB.

      Documents Required Online Tax Payment 

      • Form 16
      • Form 16A, 16B, or 16C
      • Interest certificates from banks or post offices
      • Form 26AS
      • Salary slips and bank statements
      • Proof of tax-saving investments
      • Aadhaar Card
      • PAN Card
      • Home loan statement
      • Capital gains statement

      Disclaimer: This blog is written to make it easy for readers to understand complicated processes. Some information and screenshots may be outdated as government processes can change anytime without notification. However, we try our best to keep our blogs updated and relevant. 

      Priyanka Juyal- a Writer with a curious mind & vision to create the best out of words. Other times, see her playing the guitar, sketching or narrating folk tales!

      FAQs

      What all taxes can be paid electronically?

      Today, online payment options are available for nearly all types of taxes. Here are some examples of taxes that can be paid online including Income Tax, Corporate Tax, TDS (Tax Deducted at Source), TCS (Tax Collected at Source), Securities Transaction Tax (STT), Equalisation Levy.

      Can a taxpayer change the mode of payment after generating challan(CRN)?

      No, you cannot change the payment method once the challan (CRN) has been generated. If you want to use a different payment method, you will need to create a new challan. The old challan will expire after 15 days.

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

      Online tax payment is mandatory for Companies and taxpayers who are subject to audit under Section 44AB. For all other taxpayers, paying taxes online is not required. You can also pay taxes in person by submitting a challan at designated banks. However, using the online payment option is often more convenient and time-saving.

      What should I do if my bank does not have an online payment facility or is not an authorized bank for e-Tax ?

      If your bank does not offer online payment options or is not an authorized bank for e-tax payments, you can use the online payment facility of any other person’s account, provided it is with an authorized bank. Ensure that the challan for this payment clearly includes your Permanent Account Number (PAN).

      What is the timing for making payment through the internet?

      To find out the timing for making payments through internet banking, check the relevant details on your respective bank's net-banking page on their website.