E-Pay Tax Payment – How to pay your Income Tax Online?

E-Pay tax payment refers to the process of electronically paying various taxes to the government through an online portal or platform. This process enables people, businesses, and other entities to pay their taxes online efficiently in India.

Table of Contents:

• How to e-Pay Tax Online?
• Banks Authorized for e-Tax Payment
• Advantages of e-Tax Payment
• Who needs to file Income Tax?
• Income Tax Slab Rates For FY 2022-23 (AY 2023-24)
• Income Tax Deductions for Salaried Employees 2022-23

How to E-pay Tax Online?

Follow this step-by-step guide to make your e- Tax payments online:

• Step 1: Visit the income tax portal, i.e, www.incometax.gov.in.
• Step 2: Click on the ‘ Quick Links’ section and then ‘ e-Pay Tax.’
• Step 3: Enter the requested details, like the PAN or TAN number and mobile number.
• Step 4: Enter the 6-digit OTP received on your registered mobile number and click on ‘Continue.’
• Step 5: Then select the ‘Assessment Year’ and select ‘2023-2024’. Next, select the type of payment and click on ‘Self-Assessment Tax (300)’.
• Step 6: Fill in all the payment details accurately, like the cess, penalty, etc.
• Step 7: Choose your preferred mode for tax payment. You can make the payment via Net Banking, UPI, debit or credit cards, or you can also pay at a bank counter.
• Step 8: To preview the challan details, click on ‘Continue’. Verify your details and click on ‘Pay Now’ to make the payment.

Once you have successfully made the payment, you will receive a confirmation at your registered email address and mobile number.

Pro tip: Always download the challan, as you will require the BSR code and Challan number to complete the return filing process.

Banks Authorized for e-Tax Payment

Below is a list of banks that are available on the e-filing portal for e-payment of taxes as of April 28, 2023:

• Bank of Baroda
• State Bank of India
• Bank of Maharashtra
• Canara Bank
• Axis Bank
• Central Bank of India
• City Union Bank
• HDFC Bank
• Indian Overseas Bank
• Union Bank of India
• ICICI Bank
• RBL Bank
• UCO Bank

Advantages of e-Tax Payment

The provisions for making tax payments online have significantly improved the experience of tax payers by saving them time and a lot of paper work.

Below are the advantages of paying taxes electronically:

• Time Saving: One of the biggest benefits of paying taxes online is that it reduces the time spent on the payment procedure. As it eliminates the need for a lot of manual paperwork, reduces queues, and expedites the whole process.
• Secure Transactions: Payments made through the income tax portal are secure as the government takes advanced security measures to protect the tax payer’s financial information and data.
• Instant Confirmation: Taxpayers receive immediate confirmation when they pay the tax electronically. Ensuring that their payments are recorded promptly, avoiding any penalties.
• Tax Receipt: A tax receipt on the portal is instantly generated once the tax payment is made by the taxpayer.

Who needs to file Income Tax?

The following individuals need to file their income tax returns:

• Indian citizens with an annual income equal to or higher than 2.5 Lakh per annum.
• Indian residents holding a foreign bank account.
• Individuals who have claimed tax relief under u/s 90 and 90A or u/s 91 for tax deduction.
• Individuals owning properties or foreign investments outside India.

Income Tax Slab Rates For FY 2022-23 (AY 2023-24)

According to New Tax Regime

Individuals below 60 years and NRIs

According to Old Tax Regime

Note: The income tax slabs are different under the old and the new tax regimes. The slab rates under the old tax regime are divided into three categories:

• Indian Residents age less than 60 years and non-residents.
• Between 60 to 80 years of age: Resident Senior citizens.
• Age more than 80 years: Resident Super senior citizens.

Income Tax Deductions for Salaried Employees 2022-23

• Section 80D – Deduction For medical insurance premium
• Section 80C – Deductions On Tax Saving Investments
• Section 80DDB – Deduction on Medical Expenses for Self or Dependent Relative.
• Section 80C and Section 24 – Interest on Home Loan
• Section 80E – Deduction on Loan for Higher Education
• Section 80TTA – Deduction on Savings Account Interest
• Section 80G – Donation

Income Tax Deduction under Section 80C

Following are the deductions available under Section 80C for every taxpayer. ₹1,50,000 is the maximum exemption limit under this section. Below provided is the following list:

• National Savings Certificate
• Employees Provident Fund
• National Pension Scheme
• Public Provident Fund
• Five-year bank deposit
• Sukanya Samriddhi Account Deposit Scheme
• Post Office tax-saving deposits
• Life Insurance Premium
• Post Office Senior Citizens Savings Scheme
• Equity Linked Saving Schemes
• Annuity/ Pension Schemes

Income Tax Deductions Under Section 80U

• House Rent Allowance
• Travel Allowance
• Relocation Allowance
• Leave Travel Allowance
• Mobile Reimbursement
• Bills on Periodicals and Books
• Food Coupons