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How to Pay Income Tax Online??

As automation is increasing, Income Tax Department is putting more emphasis on payment of Income Tax under correct heads and under correct assessment years. Not only payment of due tax is important but also the payment should be done correctly. There are three heads under which an individual may be required to pay Income Tax. These three heads according to their applicability are:
  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 finacial year and before filing the Income Tax return of that financial year. 
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Section 234A- Interest for delay in filing IT return
  1. Tax on Regular Assessment: 
Tax on regular assessment is the tax that we may be required to pay 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. 
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  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 Rs. 10000.
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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

Important things to take care while making 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 at the time of filling the online form of tax payment 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 2014-15, Assessment Year will be 2015-16. 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.

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Quick Links:
How to Respond to Notice from Income TAX regarding non filing of IT return

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