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A Step by step guide by H&R Block on how to pay income tax online. Get answers to the most frequently asked questions around online income tax payment and advantages of self assessment tax payment.

Online Income Tax Payment using Challan 280

Last Update Date : June 07, 2018

Online Income Tax Payment Guide

Salaried individuals generally do not worry about timely payment of Advance Income tax because their employers deduct taxes on their behalf and submit to the government on time. However, businessmen and professionals need to voluntarily assess their Income tax liability and make Advance tax payments. Even those salaried individuals who have some sources of income other than salary, need to pay Advance Tax timely to avoid late payment fees/penalties.

How to Pay Income Tax Online with Challan 280?

By following the steps given below, you can easily pay your income tax online:

  • Step 1: Go to TIN NSDL website of the I-T department.
  • Step 2: Go to “services” Click on “e-payment: Pay Taxes Online” option from the drop-down menu.
  • Step 3: Scroll down to the Non-TDS/TCS section and choose CHALLAN NO./ITNS 280. This challan is used for payment of Income tax and Corporation tax.

Challan 280

  • Step 4: Enter your PAN and other details as asked in the form like your personal details, Assessment Year, type of payment, the name of the bank through which payment will be made etc.

Payment of Self Assessment Tax

  • Step 5: Give your confirmation after filling the form to be redirected to the net-banking website of your bank.
  • Step 6: Login to your net banking account & make the payment of tax.

Netbanking Login for Income Tax Payment

  • Step 7: You will receive a challan counterfoil containing CIN, payment details & the name of your bank. Print & keep the copy safely with you.

Most Frequently Asked Questions about Online Income Tax Payment:

Is it mandatory to make tax payment online?

Government has made e-filing mandatory for all the taxpayers who fall in any of the below mentioned categories:

  • A company
  • All those persons on which the provisions of section 44AB of the Income Tax Act 1961 are applicable. These provisions are applicable to the following persons:
    (a) person carrying on a business & his income exceeds Rs 40 lakh in the Previous Year
    (b) a person carrying on a profession & his income exceeds Rs 10 lakh in the Previous Year
  • A person carrying on a business where the profits & gains arising from the business are deemed to be profits & gains of such person under section 44 AD on 44 AE or 44AF or 44BB or 44BBB depending on the case, and he has claimed his income to be lower than the profits & gains son deemed to be the profits & gains of his business, depending on the case in the previous year.

[ Calculate Your Income Tax Liability ]

Who will pay Income Tax manually?

Generally, salaried people do not need to worry about paying taxes as their employers deduct taxes from their salary in the form of TDS. However, people with professional or business income need to pay their tax themselves in the form of Advance Tax. A person whether salaried or not also needs to pay Income Tax himself if a demand is raised from the tax department due to the insufficient payment of tax.

[ Read: Advance Tax Payment Rules ]

What shall I do if I lost my counterfoil?

These days, almost all the major banks have online payment facility. However, if your bank does not have an online payment facility or is not an authorised bank for e-tax then you have another option to pay tax online. You can use the bank account of any other person for this job if that account belongs to any authorised bank having an online facility. However, the challan you generate to make such payment must indicate your PAN clearly.

What are the advantages of paying income tax online?

  • You can pay taxes from any location using the netbanking facility of your bank.
  • Funds are transfer immediately after making payment so you avoid paying a penalty even if you pay tax at the last moment.
  • All the information including your personal information you filled in the challan remains completely secure.
  • You can keep your challan copy & receipt copy safely online as well as offline.
  • Checking the status of your tax payment becomes easy as you can easily check it online at the Tax Information Network website.
  • As soon as your Bank authorizes payment of the amount, you will receive a clear, legible receipt/counterfoil from your Bank.
  • Transaction id of the e-payment transaction will be available to you in your bank statement.
  • You can check online if your money has actually reached the I-T Department. For this, you have to go to Tax Information Network Website: https://tin.tin.nsdl.com/oltas/index.html and click the box

What should I do if my bank does not have an online payment facility or is not an authorized bank for e-tax?

Generally, banks provide a facility for re-generation of electronic challan counterfoil, so you don’t need to worry if you misplaced or lost the original counterfoil. You can check your bank’s website for this option. If your bank’s website does not provide this option, then you should directly contact your bank & request for a duplicate challan counterfoil.

After making e-payment of direct tax if the status of challan is not available under Challan Status Enquiry on NSDL site, what should I do?

You can verify the status of the challan in the “Challan Status Inquiry” at NSDL-TIN website after 5 to 7 days of making e-payment. In case of non-availability of the challan status, kindly contact your bank.

If I encountered any error on e-tax app while making e-tax payment what should I do?

If you encountered any error on e-tax website, you should contact TIN call centre at 020-27218080 or write an email to TIN. Write the subject of the email as Online Payment of Direct Tax.

If after entering challan details in NSDL site if Bank Name is not being displayed what should I do?

The problem may be encountered because of the following:

Reason 1: If the error occurs due to incorrect entry of TAN/PAN in challan data entry screen.

Reason 2: If the error occurs due to issue with Internet Explorer browser. To solve this problem, the temporary internet files should be deleted. You can do so by following the given steps:

  • Open Internet Explorer window
  • Go to “Tools” Menu
  • Select “Internet Options”
  • Delete cookies and Delete temporary Internet files on your machine
  • Close the current Internet Explorer windows
  • Again go to tin-nsdl site and make e-Payment
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