How to Pay Income Tax Online and Complete the e-Tax Payment Process

Who Can File Income Tax Returns Online?

As per the Income Tax Act, people who fall under the following categories are required to file their ITR:

• Indian citizens with an annual income of above Rs 2.5 lakh as per the old regime & Rs 4 lakhs as per the new regime ^[3]
• Senior citizens (above 60 years, up to 80 years of age) with an annual income of more than Rs. 3 Lakh(depending upon the old regime) ^[3]
• Super senior citizens (above 80 years of age) with an annual income of more than Rs. 5 Lakh (depending upon the old regime) ^[3]
• Firms, including those under section 44AB, Cooperative Societies, BOI (Body of Individuals), AOP (Association of Persons), Artificial Juridical Persons, and Local Authorities (filing ITR 5). ^[1]
• Residents of India who have property or financial interests in foreign entities. ^[1]
• Assessments required to produce returns under section 139 (4B) (filing ITR 7). ^[1]
• Resident Indians who have signing authority on any account held outside India. ^[1]
• Individuals claiming tax relief under sections 90 or 90A or claiming deductions under section 91. ^[1]
• All companies are required to file their tax returns. ^[1]

Documents Required for Paying Income Tax Online

To ensure a smooth income tax payment process, you need to have the following important documents ready ^[2] :

• Form 16

• Salary Slips and Bank Statement

• Form 16A, Form 16B, or Form 16C

• Interest Certificates Issued by Bank or Post Office

• Form 26AS

• Tax Saving Investment Proof

• Aadhaar Card

• PAN Card

• Home Loan Statement

• Capital Gain Statement

Step-by-Step Guide on How to Pay Your Income Tax Online

^[2]

Step 1: Navigate to the 'e-Pay Tax' Section

1. Open the Income Tax Portal.
2. On the homepage, find the ‘Quick Links’ section on the left side.
3. Click on the ‘e-Pay Tax’ option, or you can also use the search bar to search for ‘e-Pay Tax’ and select it.

Step 2: Enter PAN/TAN and Mobile Number

1. Enter your PAN (Permanent Account Number) and confirm it by re-entering the same number.
2. Enter the 6-digit OTP (One Time Password) sent to your mobile number and click ‘Continue’.

Step 3: Select the Correct Assessment Year and Payment Type

1. In the payment page, select ‘Income Tax’ from the first box and click ‘Proceed’.
2. Enter your mobile number and click ‘Continue’.
3. From the ‘Assessment Year’ dropdown, choose ‘2024-25’.
4. Under the ‘Type of Payment’, select ‘Self-Assessment Tax (300)’ and click ‘Continue’.

Step 4: Enter Tax Payment Details

1. Accurately enter the payment amounts in the relevant sections.
2. You can refer to the pre-filled challan details on platforms like ClearTax to make sure you're entering the correct amounts.

Step 5: Select the Payment Method

1. Choose your preferred payment method (internet banking, debit card, credit card, RTGS/NEFT, UPI) and select the bank for the payment.
2. Press ‘Continue’ to proceed.

Step 6: Verify Payment Information

1. Once you click ‘Continue’, you'll see a preview of the challan details.
2. Double-check the payment information for accuracy.
3. If everything looks correct, click ‘Pay Now’ to make the payment. If any details are wrong, click ‘Edit’ to modify them.

Step 7: Submit the Payment

1. Tick the checkbox to confirm that you agree to the Terms and Conditions.
2. Click ‘Submit to Bank’ to complete the payment process.

Step 8: Receive Payment Confirmation

1. After the payment is successfully submitted, you'll receive a confirmation.
2. Download the challan for your records. You’ll need the BSR code and Challan number to complete the return filing process.

Step 9: Declare Tax Paid Details

1. After making the payment, update the payment details on platforms like ClearTax.
2. Go to the ‘Tax Summary’ page and click on ‘Add Paid Tax Details’.
3. You can either upload the challan or enter the details manually.
4. Once completed, your tax payment status will change to ‘Taxes Paid’

Benefits of e-Tax Payment

^[2]

The option to pay taxes electronically has made the process significantly more convenient.

1. Saves Time

   – You can pay taxes at your convenience, without the need to stand in long queues.

2. Automatic Record Updates

   – The tax department's records are updated automatically once the payment is made, so you don't have to take any extra steps to ensure your tax records are accurate.

3. Instant Receipt Generation

   – As soon as you make the payment, a receipt is generated instantly for your records.

4. Easy Payment Status Verification

   – You can quickly check the status of your tax payment online, without needing to visit the tax office.

Conclusion

How to pay income tax online is no longer a complex task. The government has made it easier than ever before to pay taxes securely from the comfort of your own home. By following the simple steps outlined in this guide, you can make your tax payments on time and avoid any penalties. Just remember to check all the details before making your payment and keep a record of your receipts for future reference.

FAQs

• Who is required to file income tax returns in India?

  Individuals earning over Rs. 2.5 lakh per year, senior citizens, companies, and others as per the Income Tax Act are required to file income tax returns online.^[1]

• What documents are needed to pay income tax online?

  You will need Form 16, salary slips, Form 16A/B/C, Form 26AS, Aadhaar card, PAN card, home loan statement, and tax-saving investment proofs, among others.^[2]

• How do I access the 'e-Pay Tax' section on the Income Tax portal?

  Visit the Income Tax Portal, and under the ‘Quick Links’ section, click on ‘e-Pay Tax’ or search for it using the search bar.^[2]

• What is the correct assessment year to choose when paying taxes for FY 2024-25?

  For FY 2024-25, select '2025-26' from the 'Assessment Year' dropdown when making your tax payment. ^[2]

• Can I pay my income tax using internet banking?

  Yes, you can pay your income tax through various methods such as internet banking, debit card, credit card, RTGS/NEFT, UPI, or even at the bank counter. ^[2]

• How do I verify the payment information before submitting my tax payment?

  After clicking ‘Continue,’ review the payment details in the challan preview. If everything looks correct, click ‘Pay Now’ to proceed. ^[2]

• What happens after I submit my income tax payment online?

  After submission, you will receive a confirmation and can download the challan for your records. The tax department’s records will also be updated automatically. ^[2]