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How to pay income tax using UPI, credit card, 4 other ways on new tax portal


In the last couple of years, the income tax department has taken several steps to ensure that the income tax return (ITR) filing process for individuals is made simpler and easier. One among these changes is the introduction of a new method for making tax payments.

Earlier, taxpayers could pay income taxes online using any of the 7 debit cards issued by authorized banks or through 16 authorised banks’ net banking facilities through the NSDL website. There have been several banks (for e,g. Bank of India) that are being migrated from NSDL to e-Pay Tax facility at the e-Filing portal for payment of taxes henceforth. Taxpayers who did not have accounts in the authorised banks faced difficulties in remitting taxes.

Now to aid taxpayers, e-pay tax provision has been enabled on the income tax e-filing portal itself. The new facility proposes to permit income tax payment using debit/credit card, net banking facility, pay-at-bank counters, UPI and RTGS / NEFT. At present, there are 3 authorised banks for the e-pay tax option, namely Bank of India, Federal Bank and Kotak Mahindra Bank. Do note that only Kotak Mahindra Bank Payment Gateway provides an option to pay taxes through popular Apps such as Gpay, Amazon Pay, BMIP, Phonepe, Paytm, etc.).

How to e-pay tax on the income tax e-filing portal

The e-pay option on the income tax e-filing website is similar to the -NSDL facility. Hence, most taxpayers can navigate through the process easily. Taxpayers can deposit taxes using e-pay tax option either by logging into the e-filing portal or without logging in.

On the income tax e-filing portal, taxpayers can pay advance tax, self-assessment tax, tax on regular assessment, TDS on rent/sale of immovable property/payment to resident contractors and professionals, penal or interest on TDS on rent/sale of immovable property/payment to resident contractors and professionals, equalization levy, security transaction tax, commodity transaction tax, wealth tax, fringe benefit tax, bank cash transaction tax, interest tax, etc.

As an illustration, the broad steps on ‘how to pay advance tax’ using various modes of payment through e-pay tax option on income tax e-filing portal, are captured below:

Step 1: Log in to e-filing portal using your login and password

Step 2: Choose “e-pay tax” option from “e-file” menu and click on ‘New payment’ option

Step 3: Click on “Proceed” for the type of tax, you would like to pay i.e., income-tax

Step 4: Select assessment year and select the tax payment you are making i.e., AY 2023-24 and Advance Tax and click “continue”

Step 5: Provide the tax break up, you would like to pay i.e., tax, surcharge, cess, etc and click “continue”

Step 6: You will see 5 options to pay taxes namely net banking, debit cards, pay-at-bank counter, RTGS/ NEFT and payment gateways. Please select the option of choice.

Debit Card

Step 7: This option is yet to be enabled by the authorised banks. However, it is likely that it will work in the similar fashion as it does on the NSDL website

Net Banking

Step 7: You can choose either of the authorised banks for payment of taxes though net banking and click on “continue”.

Step 8: Click “Pay now” or “continue” if the details reflected in preview are accurate

Step 9: You would be directed to the bank login page. Complete the payment using your net banking login credentials.

Pay at Bank counter

Step 7: Under this option, you can make a payment through authorised banks via cash, cheque and demand draft. Select the any authorized bank, mode of payment and click on “continue”.

Step 8: Click “Pay now” or “continue” if the details reflected in preview are accurate

Step 9: Signed copy of Challan Form generated along with payment instrument needs to be presented before the branch of the selected Authorised Bank within 15 days to make payment.

NEFT/RTGS

Step 7: You can use any bank having facility for RTGS/NEFT for tax payment by making offline payments at branches. Select RTGS /NEFT and click “Continue”.

Step 8: Click “Pay now” or “continue” if the details reflected in preview are accurate

Step 9: Signed copy of duly filled Challan Form generated needs to be presented before the desired branch of the Bank within 15 days to make payment.

Payment gateway

Step 7: You can use either of the two banks (Federal bank and Kotak Mahindra Bank) gateway to remit taxes using various options. Payment can be made with debit/credit card, net banking or UPI. Select any payment gateway and click “Continue”.

Step 8: Click “Pay now” or “continue” if the details reflected in preview are accurate

Step 9: After accepting the terms and conditions, you will be directed to respective bank payment gateway. Select appropriate mode of payment to remit the taxes and complete payment. Only Rupay, Visa and Mastercard cards are accepted. For net banking, Federal Bank provides 38 banks option whereas Kotak provides 13 banks option. For UPI payments, Kotak Mahindra Bank Payment Gateway provides an option to pay taxes through popular PSPs (Gpay, Amazon Pay, BMIP, Phonepe, Paytm, etc.) along with UPI id option.

Step 10: On successful payment of taxes, you will get the challan. Taxpayer will receive a confirmation message on their email IDs and on the mobile numbers registered with the e-Filing portal.

Charges for paying taxes on the income tax portal

Contrary to zero charges for depositing taxes via NSDL website, there may be charges levied for depositing taxes via e-filing income tax portal. However, the charges that will be levied depend on the option chosen by you.

If you opt to deposit taxes via the three authorised net banking options, then no charges will be levied. Similarly in case of remitting taxes with debit card or at bank counter of authorized banks, no extra charges will be levied.

Particulars
  • Debit Card
  • Federal bank Net Banking
  • Pay at Bank counter
  • NEFT / RTGS
  • Payment gateway
  • Transaction charges though Federal Bank Gateway
  • Nil
  • Nil
  • Nil
  • Transaction charges will be applicable as per the terms and conditions prescribed by the respective bank
  • Transaction charges would apply for payments made through Federal bank. For credit card – 0.85% of payment and for net banking, Rs 5 to Rs 12. GST additionally applies.
  • If you opt to remit taxes via payment gateways, then charges that will be levied depending on the payment gateway bank chosen by you. If you chose Kotak Mahindra Bank’s payment gateway, then there are zero charges, irrespective of whether you chose net banking, UPI or credit card to remit taxes. On the other hand, if you opt for Federal Bank’s payment gateway, then charges will be levied as follows:

    Mode of payment Charges*
    Net Banking HDFC Bank- Rs 12

    ICICI Bank – Rs 9

    SBI Bank – Rs 7

    Axis Bank – Rs 7

    Other banks – Rs 5

    Debit Card Nil
    Credit Card 0.85%
    UPI Nil

    *GST at 18% will be additionally levied.

    Advantages of e-pay option:

    • Provides option to pay taxes through different banks
    • The status of successful payments would be available in the payment history tab.
    • Confirmation messages will be sent to the taxpayer’s email ID and mobile number registered with the e-filing portal.
    • Helps in avoiding mistakes such as incorrect PAN number/entering incorrect details like selecting minor head. There is no requirement to enter the PAN number, if you pay taxes by login to e-filing portal. There is no option to pay advance tax if you select the previous assessments and no option to pay self-assessment tax, if you select the latest assessment year.
    • Provides convenient options such as pay taxes later/enables saving drafts of challans. In case of the pay later option, the tax payment has to be made within 15 days, else the option lapses.

    (Aarti Raote, Partner, Deloitte India and Vinod Raj, Manager, Deloitte Haskins & Sells, LLP.
    )



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