Every citizen of India is supposed to pay income tax if their annual income comes under tax slab set by the government of India. Paying tax online is easy and and convenient. So, if you are looking for a way to pay your tax online.
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How to pay income tax online
If you need to pay your tax via online mode then you must have to take few simple steps.
1. Open ‘https://www.tin-nsdl.com/’ on your computer and click on Services section
2. From the drop down menu choose the option e-payment: Pay Taxes Online
3. Now, choose the relevant challan from the options ITNS 280, ITNS 281, ITNS 282, ITNS 283, ITNS 284 or Form 26 QB demand payment (only for TDS on sale of property) as applicable.
ITNS 280: This challan should be used for making payment of Income-tax, including Corporate tax.
ITNS 281: This challan should be used for making payment of TDS/TCS by corporate and non-corporate deductors/collectors.
ITNS 282: Payment of STT. This challan is used for payment of security transaction tax, hotel receipts tax, estate duty, interest tax, wealth tax, expenditure tax, other direct taxes and gift tax.
ITNS 283: This challan is used for payment of banking cash transaction tax and fringe benefits tax.
ITNS 284: Income tax and corporate tax in case of undisclosed foreign income and assets
ITNS 285: Equalization levy
ITNS 286: I-tax challan 286 can be used by those paying online tax under the Income Declaration Scheme 2016.
Form 26 QB: This form should be used for making payment of tax deducted at source from consideration paid for the purchase of immovable property. It can be used by a corporate as well as non-corporate deductor.
4. Enter PAN / TAN (as applicable) and other mandatory challan details like accounting head under which payment is made, address and the bank name through which payment is to be made etc and Submit it.
5. After submission, a confirmation message will be shown along with taxpayer name.
6. Now, you will be redirected to the net-banking portal of the particular bank you’ve selected in the step 5.
7. Login using your Net banking credentials, enter the payment details and make the payment.
8. After the payment is successful, the website will issue a challan counterfoil with CIN, payment details and bank name using which the payment has been made. Challan No/ ITNS 280 is required to be used for the payment of Self assessment tax.
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Advantages of paying Tax online
- Everyone has the convenience of paying online at any time (24*7)
- You can pay on behalf of the company, firm, and others from anywhere in the country.
- One may get an immediate acknowledgement of payment in form of a challan.
Advantage to pay tax of using challan
- It is a simple form used to pay tax to the government.
- Tax is deposited in authorized banks and not directly with income tax department.
- It can be paid.
- Direct online – via Net Banking.
- Manually – By going to the bank physically.
- Prescribed Challan form 280
Types of Income Tax
Self Assessment tax
Self Assessment tax means any balance tax paid by the assessee on the assessed income after taking TDS and Advance tax into account before filing the Return of income.
Self-assessment tax is paid for a particular financial year end. (i.e.after 31st March)
Advance tax is used to calculate your advance tax liability. This type of tax is used paid in advance during financial year. (i.e. 1st April to 31st March)
Tax on Regular Assessment
It is a tax paid when some notice is received by income tax department.