Step by Step Guide on Online Payment of Income Tax

(Last Updated On: June 24, 2019)
Want to pay income tax before the last date to avoid penalty? Very smart decision. You can easily pay income tax sitting home. No worry of standing in bank queue or traveling long distance.We present to you a step-by-step guide for online income tax payment using government’s website:
Step 1:
Click on Link:     
   Step 2:
At the last under Non-TDS/ TCS option, select Challan no./ ITNS 280 – Payment of Income tax / Corporate tax
online payment of income tax
You will be redirected to the e-Payment portal. Simply, fill all your details in the Income Tax Challan. Please keep in mind:
  • If you are an individual , select option (0021)INCOME-TAX (OTHER THAN COMPANIES) under tax applicable.
  • Fill in your PAN No. and Assessment Year (A.Y.) correctly. A.Y. means the year next to financial year (F.Y.)
          For e.g.
          F.Y. 2016-17   –  2017-18 is the A.Y.
          F.Y. 2017-18   –  2018-19 is the A.Y.
          F.Y. 2019-20   –  2020-21 is the A.Y.
  • Fill in your required contact details correctly like your address, phone number and email address.
  • Then, under the head Type of Payment, you need to select the type of tax based on your tax liability situation.

Out of all six sub-option, only three are applicable on you.

Choosing the correct applicable option for online income tax payment:
Type Of PaymentApplicability
(100)Advance TaxIf any tax was paid during the financial year then it will be called as advance tax. For example, for F.Y. 2017-18, if you are paying tax till 31st March, 2018, it will be called as advance tax, and code 100 needs to be selected.
(300)Self Assessment TaxWhen you  pay tax after the end of the F.Y. but before filing the return, then it will be called as Self Assessment Tax. For e.g, for FY 2017-18, if tax is paid after the 31st March, 2018, then it will be called as  Self Assessment Tax and code 300 needs to be selected.
(400)Tax on Regular AssessmentWhen you get a demand notice from the Tax Department then this demand needs to be deposited under the head of code 400. This normally used after the order passed under scrutiny assessment or demand under the intimation received as per section 143(1).
  • Select the bank from down-drop menu, through which you wish to make online tax payment. Some options given are HDFC Bank, ICICI Bank, Canara Bank etc.
  • Enter Captcha Code and click on “Proceed” button.
income tax online payment
Then a confirmation window with a summary of your details will be shown. Recheck all your details very carefully & Click on “Submit To The Bank” button.
online submission of Income tax return
You’ll be redirected to the Net Banking Page.Here, you need to enter your tax payment details like Tax, Surcharge, Interest etc.
However, you can leave surcharge, education cess, interest and penalty blank. filing income tax online
Step6 :
Once the payment is cleared, Challan 280 will be generated. This challan acts as receipt of payment of the tax done by you.  While filing your ITR, various Challan details like Amount, BSR Code, Challan Serial No. needs to be entered under prepaid taxes column.
You can verify the amount of taxes paid in your account using Form 26 AS on income tax department’s website.Generally it takes 10 -15 days for data to be updated in Form 26 AS.
  efiling itr for 2017
We hope our step by step guide has helped you in filing income tax without any glitch. At Tax2Win, it is our constant effort to simplify return filing procedures. For any help, reach out to our eCAs. Happy Filing 🙂 For any Further queries Contact us!!!

Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.