How to Pay Income Tax Online in India 2018

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Taxes are significant tools for nation building. Income tax is the major revenue stream for any government, which is used for the development of vital sectors of the country like education, health, infrastructure, defense, etc. 

So, for the cumulative growth of our country, it is a duty of all salaried individual to pay income tax. Although, the number of people finds paying taxes burdensome in either way financially or on time.  To help out people with this problem, the department has exercised sufficient provisions to ensure the payment of taxes. 

You may very often come across the term “Self-Assessment Tax“.  Let us first briefly tell you what self-assessment tax is.

Self-Assessment Tax

Keeping in mind the convenience of the citizens the whole tax liability is divided up into portions so that people pay advance taxes on the income reducing the burden to pay a lump-sum at one go. Generally, one can know about the deducted tax amount through the salary slip. However, the actual tax liability can be different from the deducted amount, in order to ensure this tax computation is being done at an approximate level. In some cases, the advance tax paid can be lesser than actual tax calculated, in such cases the individual need to pay the additional amount in order to clear all dues.

The taxpayers can self-assess their taxes which is almost equal to actual tax liability. However, in some cases, self-assessment of taxes can go off track resultant of which the person will have to pay the due amount.

Procedure to Pay Income Tax Online

Most of the people find tax payment complicated and time-consuming, and in case one has to pay the extra amount then it can be pretty worrisome. So, to avoid this problem, the Income Tax department of our country has put adequate procedures to ensure the payment of taxes on time and in hassle free manner. The salaried individuals can pay the taxes online by following some simple steps. However, one should keep in mind that online payment can only be done through net banking.

1.   In order to pay tax online first log into http://www.tin-nsdl[dot]com > Services > e-payment: click here on tax e-pay taxes and pay taxes online.    

2.    First and foremost the person will have to go to tax information network of Income Tax Department and will have to select Challan 280. 

3.    Once you have selected the challan choose the assessment year correctly. Choose section 100 “Advance Tax” if the person is paying tax during the financial years, section 400 “Tax on Regular Assessment” if the individual gets a demand notice  from the tax department and chooses section 300 “ Self-Assessment of Taxes” if the person is paying tax after the financial year has ended.

4.    After choosing the assessment year correctly fill up the mandatory fields which includes:-

  •  PAN
  •  Assessment Year
  •  Address
  •  Phone number
  •  Email Address
  •  Bank Name
  •  Captcha Code 

5.  On confirmation of the data entered by the individual, the taxpayer will be preceded to the net-banking site of the bank.

6. In order to further proceed with the payment of income tax online, the taxpayer will have to login to the net banking site with user id/password provided by the bank for net banking purpose and enter the payment details on the bank site.

7.  On successful payment of income tax challan counterfoil is displayed which includes information about the paid tax and the taxpayer should keep it with themselves in case of any future queries with the Income Tax department.

8. In your Challan 280, the individual will be able to see details about the payment on the receipt. 

With the enhancement of technology, in today’s time online payment of income tax has become extremely time-saving and hassle-free. However, according to the person’s own choice he/she can pay tax offline also by visiting the designated bank and pay the due amount either by cheque or by cash. If the person pays the tax offline then he/she will have to collect the challan from the IT office, after that they will have to fill it and submit with the required amount.

Important Aspects that should be Kept in Mind While Paying Due

There are certain things that should be kept in mind while paying dues

  • PAN- It is crucial to enter the correct Permanent Account Number.
  • Verification- To ensure that the form is filled correctly, one should dual check and verify the completed form.
  • Calculation- The payers should recheck the due amount and calculate for themselves in order to avoid any further mistakes.
  • Receipt- The challan counterfoil generated after the deduction of tax should be kept safe for any future agreement with the income tax department. 

How to File Income Tax Return after Payment

Once the person is done with the tax payment, they need to report this information on your income tax return. Visit http://www.incometaxindia[dot] for e-filing or downloading the relevant forms for your income tax return. The taxpayer should have the BSR code and the challan number handy while filling the forms.”

You may like to Read: How to efile Income Tax

How to Calculate Self- Assessment Tax

The two major processes should be followed for interest calculation if the individual has made any tax payment prior the assessment date.

1.    The interest is calculated in case of unpaid advance tax till the date it remains unpaid. The total time period for interest calculation starts from the taxation due date till the date the payment is actually made.

2.    The total tax payable equals self-assessed tax liability less the total advance tax payment made till date.

The following procedure should be followed for the calculation of self-assessment tax

1.    With the help of income tax slab, available online one can calculate the taxable amount payable on the individual’s total income.

2.    Then include the interest payable under section 234A, 234B, and 234C.

3.    After the addition of amount, deduct the relief amount under section 90, 90A.

4.    At the end subtract the MAT credit amount under section 115JAA and advance tax amount

This will lead to the calculated self-assessment tax payable amount on the individual’s income tax.