How to Pay Income Tax Online?

Most of us do not find paying our income tax a very interesting job to do although it is the moral duty of every eligible citizen of India to file their Income tax returns. The Income tax department keeps a keen eye on the defaulters and thus ensures that the taxes are paid in time. With the commencement of new digital era paying income tax has also become online which is one of the most simplest and easiest way to pay your income tax in today’s age and if you did not know about it earlier here’s how to pay your Income Tax Online.

What an Advance Tax?

If you are employed with an organization and have carefully looked into your pay-slip you would find that there is an amount that is deducted towards the income tax from your salary, so that you will not have to get it deducted all at once at time of filing your returns. Now what you need to know about this advance tax is that the amount that gets deducted towards income tax from your salary may not be the actual income tax that you need to pay it may be on the higher side and therefore you it is important that you file return so that you can get back the money that got deducted, on the other hand if the amount deducted from your salary is less than the tax you need to pay you will have to clear your dues.

A number of people who pay tax self-assess their profiles. There are good amount of chances that you may end up paying more tax than less tax due to a minor error while filing your income tax return. Therefore it is wise to either go with an expert or to know yourself, steps followed by experts to file an income tax return online. If you are wondering how to file your Income Tax Return Online just like an expert all you need to do is to follow simple set of instruction:

  • Step 1 - Login: You need to visit the official website of the income tax department
  • Step 2 - E-payment:Then you need to click on ‘e-payment’ section.
  • Step 3 - Challan number 280: You need to further click on ‘Challan 280’ to pay your income tax dues.
  • Step 4 - Form Fill up: You will be required to fill the form with necessary details, such as your Permanent Account Number – PAN Card No., the year of assessment, your name, address, contact number and also your email id.
  • Step 5 - Type of Tax: You need to further select the kind of tax applicable on your income; generally advance tax or tax on regular assessment is considered for this purpose. If you have received intimation from the Income tax office you need to select ‘Tax on regular assessment’.
  • Step 6 - Bank:Choose your bank from where you need to make the payment.
  • Step 7 - Online Payment:To go further you need to select ‘proceed’ and then you will be directed to the portal to make online payment. You can make the payment either by using your debit card or credit card.
  • Step 8 - Payment Gateway: Every bank has its own choice of gateway through which the payment is allowed and authenticated. Therefore, you will be required to follow the instructions to make a successful payment.
  • Step 9 - Receipt of payment: A receipt will be instantly generated. You need to keep a soft copy of this receipt very carefully for later reference and communication with Income Tax department.

You can also pay your taxes by visiting the bank and deposit your dues with either cash or cheque. However when you visit a bank you will have to collect your tax challan from the Income Tax office and then fill and submit the form along with the requite amount. Once you have filed you Income Tax Online you will have to wait for atleast two to six months from the date of e-filing your income tax returns. You can also track the status of your application online by following a simple set of procedure:

  • Step 1: Login to the NSDL-TIN website
  • Step 2: Enter your PAN number and year of assessment
  • Step 3: The status of your online income tax refund will be displayed

The statuses that will be displayed when you track your IT return application form are also of different kinds:

  • Expired
  • Refund Returned
  • Processed through direct credit mode but failed
  • Paid (Received ECS refund advice but account not credited)
  • Adjusted against outstanding demand from previous year
  • Processed through NECS/NEFT and failed

Last Dates to E-File Income Tax Online for Individuals Working in Firms Are

  • 1st Payment of 30% should be paid by 15th September
  • 2nd Payment of 60% should be paid by 15th December
  • 3rd Payment of 100% should be paid by 15th March

Last Dates to E-File Income Tax Online for Companies Are

  • 1st Payment of 15% should be paid by 15th June
  • 2nd Payment of 45% should be paid by 15th September
  • 3rd Payment of 75% should be paid by 15th December
  • 4th Payment of 100% should be paid by 15th March

Things to Consider While Paying Dues

  • PAN: You must enter your correct Permanent account number or PAN number displayed on your pan card.
  • Verification: The form once completed should be re-checked and verified to ensure that there is no error.
  • Calculation: the amount to be paid must be carefully assessed so that there is no mistake and re-work to be done later.
  • Receipt: A receipt is generated after the tax has been successfully paid, this receipt is very important as it bears on it Challan Identification Number which serves very useful when you are trying to correspond on the same with the Income Tax department.