Income tax payment
can be done through online or manually by furnishing the hard copy
of the challan at the designated bank. The Government has upgraded
itself and introduced e-payment facility for income tax. In this
Blog, we look at the procedure for online payment of income
Mandatory Online Payment
Private limited company, one person
company and limited company are mandatorily required to pay tax
using internet banking facility. Further, taxpayers other than
company who are liable to get their
accounts audited as per section 44AB are also required to
mandatorily pay income tax online.
Online income tax payment is mandatory for all companies and all
non-corporate taxpayers covered by audit under section 44AB.
However, a person not covered in the mandatory category can
voluntarily pay income tax by using the e-payment mode.
Income Taxes That Can be Paid Online
Taxes that can be paid online through internet banking
Corporate tax (i.e., income-tax paid by a company)
Tax deducted at source (TDS)
Tax collected at source (TCS)
Securities Transaction Tax (STT)
Wealth-tax and other direct taxes like gift tax, expenditure
Online Income Tax Payment Procedure
To make income tax payment online, a net banking enabled account
in an authorised bank is required. If the taxpayer does not have a
net banking enabled account in his/her name, then payment can be
made through some other persons account, but the tax should be paid
in the assesses name.
Online Income Tax Payment
Step by Step Guide to Online Tax Payment
Visit www.tin-nsdl.com or the online tax e-payment
Open the respective chalan based on the payment type.
After selecting the correct challan, the screen for providing
details will be displayed, the taxpayer should provide the correct
details in the challan.
After providing all the requisite details correctly along with
the correct Codes, the taxpayer should select his bank from the
dropdown provided in the screen (i.e. the selection of the bank
from which he wishes to make the online income tax payment).
After selecting the applicable bank, the taxpayer should input
the verification Code appearing on the screen.
After providing the verification Code the taxpayer should click
on the proceed button provided on the screen.
On clicking on the proceed button, a new page will be displayed
containing the details provided by the taxpayer in the Challan and
the name of the taxpayer as per the data base of Income-tax
Department will be displayed. The name will be displayed from the
PAN/TAN database with the Department.
In case of Form 26QB the name of the transferor and transferee
will be displayed.
If the name and other details as displayed on the screen are
correct then the taxpayer can proceed for making payment by
clicking on the submit to bank button provided on the screen.
On submitting the challan to the bank, the gateway of the bank
will be displayed on the screen and the taxpayer has to login to
his account and input the details of tax, interest, cess, penalty,
etc., to be paid.
After providing the details he should verify the details once
again to check the correctness and then should submit the challan
to bank for effecting payment.
On successful completion of the transaction, the challan of
payment (i.e., receipt of payment) will be generated and will be
displayed on the screen.
Challan will contain Challan Identification Number (CIN) and
other details. The taxpayer should preserve the hard copy as well
as soft copy of the Challan for his records and for further
Challan Status – Online Tax Payment Status Check
Using the Challan Identification Number, tax payers can track
online the status of their challans deposited in banks.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Cummins Inc. is a foreign company, rendering services in respect of desktop/laptop software license and internet mail facilities to its Indian associated enterprises, i.e. CIL and CSSL which were paying IT charges provided by the taxpayer.
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