Income Tax Challan - How To Pay Income Tax Online?

With advances in technology, taxpayers can pay their income tax dues, such as advance tax or self-assessment tax, online on the income tax portal via the e-Pay Tax facility. Taxpayers can pay through debit cards, UPI, net banking, or by generating challan. 

Once the income tax is paid, the taxpayer must ensure it is reflected in their Form 26AS and ITR. 

How to e-Pay Tax Online?

The following is a step-by-step guide to paying taxes online through the Income Tax Portal. 

Step 1: Go To The "e-Pay Tax" Section

1. Visit the official Income Tax Portal
2. On the homepage, on the left side, go to the "Quick Links" section. 
3. Click on the "e-Pay" option, or you can use the search bar to find the "e-Pay Tax". 

Step 2: Enter PAN/ TAN & Mobile Number

1. Enter your PAN, then re-enter it to confirm. 
2. Enter your mobile number and click "Continue". 
3. You will receive a 6-digit OTP at the mobile number you provided. Enter it and click "Continue". 

Step 3: Select The Right Assessment Year & The Payment Type

1. Select the first box labelled "Income Tax", then click "Proceed". 

2. From the "Assessment Year" dropdown, select "2025-26". 
3. Under the "Type of Payment" select the "Self-Assessment Tax (300)" and click on "Continue". 

Step 4: Enter The Tax Payment Details

Enter the payment amounts under each relevant category. 

Step 5: Select The Payment Method

1. Taxpayers can select their payment method and bank, then click "Continue". 
2. Taxpayers can make payments using internet banking, debit cards, credit cards, RTGS/NEFT, UPI, or at the bank counter. 

Step 6: Verify The Payment Information

1. After clicking "Continue", taxpayers can preview the challan details. 
2. Taxpayers must double-check the payment information for accuracy. 
3. Then click "Pay Now" to make the payment or "Edit" to modify the details.

Step 7: Submit The Payment

1. Tick the checkbox to agree to the Terms and Conditions.
2. Click "Submit To Bank" to proceed with the payment. 

Step 8: Receive Payment Confirmation

1. Taxpayers will receive a confirmation once their tax payment has been successfully submitted. 
2. However, taxpayers must download the challan, as they will need the BSR code and the Challan number to complete the income tax return filing process. 

Step 9: Declaring The Tax Paid Details

1. The taxpayers can download the payment challan from the Income Tax Portal. 

Authorised Indian Banks for e-Tax Payment

The following is a list of authorised banks available on the Income Tax e-filing portal for e-payment of taxes. 

What Are The Benefits Of e-Tax Payment

The technological advancement that allows taxpayers to pay taxes electronically has made tax payments much easier. The following are e-Payment benefits:

• Tax e-payment saves taxpayers' time by allowing them to pay at their convenience, eliminating long queues. 
• The income tax department's records are automatically updated, so taxpayers need not take any additional steps to keep them up to date. 
• The tax payment receipt is generated instantly after the e-payment. 
• Verifying the status of tax payments can be done online. 

Eligibility Of E-Tax Payment

The following taxpayers must pay their taxes online. 

• All the corporate assessees. 
• All the assessees (other than the company) to whom the provisions of Income Tax Act Section 44AB are applicable. 

The Assessment Tax

When you file your taxes, the TDS and the advance taxes you have paid during the year will be deducted from your final tax computation. If the total amount you have paid is not enough to cover the tax balance, you must pay the remaining balance, which is referred to as self-assessment tax. 

The self-assessment tax can be paid online to ensure successful e-filing. Furthermore, you should also pay the interest under section 234B and 234C, plus the amount of taxes due if you are paying the taxes after 31 March. 

The Advance Tax

If the taxpayer's annual tax dues exceed the threshold of Rs 10,000, you must pay the income tax in advance. Generally, employers in the salaried class must make these income tax payments through TDS deductions. 

Due Dates Of Payments Of Advance Tax For FY 2025-2026

The following tables show the due dates for paying advance tax for individuals. 

 Under sections 234B and 234C of the Income Tax Act, the non-payment of advance tax can result in penalty interest being imposed. 

Outstanding Demand Payment

At times, the taxpayer may have to make an income tax payment to comply with the income tax demand notice. Once you agree with the assessing officer and are all set to pay the demand, you can do so online. It is also referred to as the tax on regular assessment. 

The Bottom Line

For both Indian residents and NRIs, filing income tax returns is now easier, thanks to an array of online payment options. These online payment options can be accessed through the Income Tax Portal. We believe that after reading this blog, the taxpayer will have a clear understanding of the entire process of paying taxes online via the income tax portal. 

For NRIs seeking professional assistance to file their income tax return in India, Savetaxs is the name to trust. Our tax experts are highly professional in evaluating your income tax returns, verifying data, processing refunds, managing assessment records, handling data entry, and more. 

We provide end-to-end assistance with tax filing queries. Connect with us as we serve our clients 24/7 across all time zones.