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How to Pay Income Tax Online??

Online payment of taxes is very convenient and time saving. I remember the days of long queues in banks for payment of taxes in July. It was lot more time consuming and many errors in filling up the challans used to occur. That all is automated now. Payment is easily done using net banking.

With digital payments its very important to enter correct details. The Assessment Year for which tax is being paid should be correct otherwise you will not get credit of the paid taxes in the concerned year. Rectification will be required which again will be an unnecessary hassle.

Another important factor is to make the payment under correct head. Correct head means type of tax which is to be paid. The tax paid within the financial year ie. before 31st March of the year should be Advance Tax while as tax paid at the time of finalising your return will be Self Assessment Tax.

Here are the common types of taxes that might be paid by an individual and further related links of the step by step process of how to make payment of such taxes & demands:

  1. Self Assessment Tax:
This is most common type of Income Tax paid by most of the individuals or we can say generally Self Assessment Tax is the head under which we pay Income Tax. Self Assessment Tax is the tax which we pay while finalising our Income Tax Return. It is paid after 31st March of the financial year and before filing the Income Tax return of that financial year. 

Click here to know how to pay Self Assessment Tax online?
Section 234A- Interest for delay in filing IT return
  1. Tax on Regular Assessment: 
Tax on regular assessment is the tax that is required to paid against a notice of demand from Income Tax department. So when we receive a notice of demand and find that yes we are required to pay some additional tax, it shall be deposited under the head Tax on Regular Assessment. 

Click here to know how to pay Tax on Regular Assessment online?

  1. Advance Tax: 
Advance Tax is the Income tax paid in advance. As per the IncomeTax Act, tax on our incomes shall be deposited before 31st March of the respective financial year, in the form of advance tax, otherwise interest @1% is payable on the tax amount. Advance tax is not applicable if total tax liability of an individual for the year is less then 10000.

Click here to know how to pay Advance Tax?
Due dates/last dates for Advance Tax payment
How to Calculate Advance Tax payable?
Interest u/s 234B for default in payment of Advance Tax
Interest u/s 234C for default in payment of Advance Tax instalment
  1. TDS on Property Purchase:
TDS @ 1% on the payments made for purchase of property of 50 lacs or more is required to be deducted under Section 194-IA of the Income Tax Act. Tax must be deducted on the same day on which payment to seller is made & TDS must be deposited with in 30 days from the end of month of such deduction; failing which a penal interest @ 1.5% per month or part of month for delay in deposit and @ 1% per month or part of month for non deduction of TDS is charged.

What is TDS on Property Purchase?
How to Deposit TDS as per Section 194IA on Property Purchase?
How to pay demand of interest on TDS on Property Purchase?


Dos & Donts of online payment of Income Tax:

  • Calculate the exact amount of tax payable along with interest if any due.
  • Enter your full address, even the fields which are not marked compulsory shall be filled. This will save you from any unnecessary problems which may be faced due to banks not approving the half filled forms. Many banks disapprove the forms which are not filled completely, at the time of final payment.
  • Make sure that you select the correct Assessment Year at the time of filling the forms. For financial year 2019-20, Assessment Year will be 2020-21. This is a very important field, as getting the Tax payment Challan (payment receipt) corrected later is a very cumbersome process. Many individuals make the mistake of selecting wrong Assessment Year and thereby face unnecessary hassels. 
Understand the Terms Assessment Year and Financial Year
  • At the top Select Tax other than Companies and at the bottom of the form carefully select the appropriate type of tax payment (as discussed above).
  • After submitting the form and before going for payment check all the details as shown on the confirmation screen carefully. Name as per PAN must appear at the confirmation screen.
  • After making payment, check the Challan of payment (receipt of payment) thoroughly. If you find any mistake, contact your bank immediately as at this stage the banks can correct some mistakes within seven days, later on procedure will be complicated and will take time.

Dont miss to link PAN with AADHAR. How to link PAN & AADHAR Read in detail...

Standard deduction from salary of  50000/-...read in detail...
Do write to Arpita for a query or for a feedback at arpita@tdsmaster.com

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