A simple guide to E-payment of Taxes!


(Last Updated On: August 29, 2019)

Gone are the days when at the due dates of paying taxes, you had to stand in queues at banks and wait for your turn to deposit the tax or physical challans. With the development of technology and introduction of e-payment facility, you can easily pay tax from any place at any time by using the internet banking facility of the authorized banks.

Although there are two modes of payment of taxes – physically and electronically, still the following persons cannot use the physical mode of payment of tax and have to pay the tax electronically using the e-payment facility:

  • All companies; and
  • All taxpayers other than company who are liable to get their accounts audited u/s 44AB.

Therefore, if you are covered under the above categories, it is mandatory for you to make e-payment. Also, even if you are not covered above, you can voluntarily pay taxes through e-payment mode, which anyways is safe, simple, time saving and can be used from anywhere. The only thing you need to pay your taxes online is a net banking enabled account in an authorized bank. Even if you don’t own such account, you can still make e-payment by using a net banking enabled account of any other person but the tax should be paid in your name. Further, you can use your debit cards and credit cards too!

Which taxes can be paid electronically? How?

The following taxes can be made through e-payment by using the Challans as mentioned:

Tax which can be paid electronicallyChallan No.
For making payment of Income tax (Code 0021) and Corporate tax (Code 0020)ITNS 280
For making payment of TDS/TCS by corporate and non-corporate deductor/collectorITNS 281
For making payment of Securities Transaction Tax, Wealth Tax and other direct taxes.ITNS 282
For making payment of income-tax and corporate tax in case of Undisclosed Foreign Income and Assets.ITNS 284
For making payment of Equalization LevyITNS 285
For making payment under Income Declaration Scheme, 2016ITNS 286
For making payment of tax deducted at source in case of immovable property. (Code 0020 for company and 0021 for non-company deductees)Form No. 26QB

What are the general requisites for a valid Challan?

  • Correct PAN / TAN should be entered in case of payment of income-tax/ TDS/TCS.
  • Correct financial year/assessment year should be selected.
  • Correct address is to be provided along with correct Pin Code.
  • Correct E-mail ID should be provided.
  • Correct phone number should be provided.

What is the E-payment procedure?

E payment procedure from Tax2win .

CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. 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.