Table of Contents
Introduction
n alignment with the Digital India vision, the Indian government has revamped its tax payment infrastructure to create a seamless, integrated financial experience. The transition from the old NSDL-based system to the “e-Pay Tax” gateway on the new e-Filing portal has redefined how taxpayers interact with the treasury. Online income tax payment is now a highly secure, instant, and multi-channel method that allows individuals and businesses to settle liabilities—ranging from Advance Tax to Self-Assessment Tax—without ever visiting a bank.
Advantages of Income Tax Online Payment:
Expanded Payment Modes: Beyond traditional Net Banking, taxpayers can now pay via UPI (Google Pay, PhonePe, etc.), Credit Cards, Debit Cards, and RTGS/NEFT, providing maximum flexibility.
Instant Challan Generation: The new system generates the Challan (CRN) instantly. There is no longer a lag between the bank’s confirmation and the tax department’s records; the payment reflects in your AIS (Annual Information Statement) almost immediately.
24/7/365 Availability: The e-Pay Tax service operates round-the-clock, even on bank holidays, ensuring that taxpayers can meet midnight deadlines on the last day of the financial year.
Pre-filled Information: When logged into the portal, your PAN and personal details are auto-populated, drastically reducing the risk of depositing tax into the wrong account or under the wrong minor head.
Error Correction: The digital system provides a “Challan Correction” facility for specific fields, making it easier to rectify mistakes made during the payment process without lengthy physical correspondence.
Process of Income Tax Online Payment:
Accessing the Portal: Visit the official e-Filing portal. You can pay tax either by logging into your account or by using the “e-Pay Tax” quick link on the homepage for a non-login-based payment.
Verification: Enter your PAN and a valid mobile number to receive a one-time password (OTP). This ensures the person making the payment is verified.
Selecting the Tax Category: Choose the appropriate category, such as Income Tax (0021). You must then select the Assessment Year (AY)—for example, for the financial year 2024-25, the AY is 2025-26.
Selecting the Type of Payment (Minor Head):
Advance Tax (100): For payments made during the financial year.
Self-Assessment Tax (300): For payments made after the year ends but before/during filing ITR.
Tax on Regular Assessment (400): For payments made in response to a demand notice.
Payment and Receipt: After entering the tax breakdown (Tax, Surcharge, Cess, Interest), choose your preferred gateway (Net Banking, UPI, or Payment Gateway).
Downloading Challan (CRN): Once the transaction is successful, download the BSR Code and Challan Serial Number. This receipt is automatically saved in your “Payment History” on the portal for future reference.
Conclusion
The evolution of online tax payments in India marks a shift from a “process-oriented” system to a “taxpayer-centric” one. By integrating UPI and diverse payment gateways, the government has eliminated the friction traditionally associated with tax compliance. This digital-first approach not only fosters a cashless economy but also ensures that tax administration is transparent, accountable, and efficient. For the modern taxpayer, mastering the e-Pay Tax system is the final step in achieving complete digital financial literacy.
Disclaimer: The views expressed here are of the author and do not reflect those of Dhanvantree. Mutual funds are subject to market risks, please read the scheme documents carefully before investing.