Monday, March 30, 2009

HOW TO DEPOSITE ONLINE INCOME TAX


on Monday, March 30, 2009

As I have earlier written that income tax payment online would be mandatory from January 1,2008BUT THE DATE HAS BEEN NOW 1/04/08PRESS RELEASE HAS BEEN ISSUED BY CBDT READ THIS.So one should also interested in how to make e payment of taxes through internet.
Update:clarification on tds mandatory epayment and payment from other's bank accounts has been issued vide circular no 5/2008 dt 14/05/2008


in my view internet payment is easier than manual payment(deposit in bank branch).The basic advantages are given below.
  1. In e payment of taxes ,there is no need to issue a cheque or deposit cash for taxes.
  2. No need to download software or purchase income tax challan form.
  3. Your Pan /Tan will be verified from income tax database .so less risk for wrong deposit of taxes
  4. No Q,instant receipt of challan
  5. chances of uploading wrong data by Bank Employees will reduced
and there are other benefit also. Now lets know how to make e payment of tax.

you can select one of the two gateways.
  1. Start the process from NSDL/INCOME TAX web site
  2. Start the Process From you bank website.
presently only six banks are authorize to receive payment through internet for income tax .
i.e
  1. Axis Bank
  2. State Bank of India
  3. Punjab National Bank
  4. Indian Overseas Bank
  5. Canara Bank
  6. Indian Bank
  7. Bank of India
  8. Corporation Bank
  9. State Bank of Bikaner & Jaipur
  10. State Bank of Travancore
  11. State Bank of Indore
  12. Vijaya Bank
  13. HDFC Bank
  14. Oriental Bank of Commerce
  15. State Bank of Patiala
  16. Bank of Baroda
  17. IDBI Bank
  18. State Bank of Mysore
  19. Bank of Maharashtra
  20. State Bank of Hyderabad
  21. State Bank of Saurashtra
  22. Union Bank of India
  23. Allahabad Bank
  24. Dena Bank
  25. Syndicate Bank
  26. ICICI Bank
list is increasing day by day so check your bank also

lets learn Start the process from NSDL/INCOME TAX web site
  • click the above link & than select link given at bottom of your bank's name
  • select the appropriate challan form from 280,281,282,283
  • fill the the selected form and select the bank from which you want to transfer funds
  • click submit
  • a message will appear"

    For the TAN/pan given by you above, the name as per Income Tax Department database is '...........................................................................................'. If the name is right, then click on "Submit to the bank"
  • if your name is matched with income tax data base than click the submit to bank button otherwise check your pan/tan or correct the name filled by you
  • you will lead to your net banking site ,login your self and confirm the payment .
  • a e receipt will be genrated ,save it for future use.
  • your e-payment process is complete now

you can check frequently asked question about e payment from here

What is e-tax payment?
Ans. This is a facility provided to the taxpayers to make income tax payments through internet using net-banking facility

Can I use this facility to pay income tax?

Ans. You can, if;
a) You have a bank account with net-banking facility, and
b) Your bank is amongst the banks that provide the e-tax payment facility.

in my opinion you can also use your friends account to make such payment after payment return money to friend by cheque.

How do I know whether my bank provides this facility?

Ans. The list of the banks providing this facility is available on NSDL-TIN website. Alternatively, you may get the information from your bank.

What is the procedure for entering the required data on the screen for paying tax online?
Ans. Log on to the NSDL-TIN website. Click on the icon 'Pay tax online'. Choose the required challan.
After choosing the required challan you will be directed to the screen for entering the following data:
  1. PAN for non-TDS payments and TAN for TDS payments
  2. Name and address of the taxpayer
  3. Assessment Year
  4. Major Head Code
  5. Minor Head Code
  6. Type of Payment
In case of challan no. 280, 282 and 283, the Permanent Account Number (PAN) needs to be entered. In case of challan no. 281 Tax deduction Account Number (TAN) needs to be entered.
Please ensure that you enter PAN/TAN correctly, as this is extremely important for further processing.
The system will check the validity of PAN/TAN. In case PAN/TAN is not available in the database of the Income tax Department then you cannot proceed with the payment of tax.
After entering the required data, select your bank through which the tax will be paid. Select your bank from the list of banks providing this facility.
Once you have completed this, click on PROCEED button. TIN system will display the contents you have entered along with the "name" appearing in the ITD database with respect to PAN/TAN entered by you.

What is the procedure after entering the required data?
Ans. You can now verify the details entered by you. In case you have made a mistake in data entry, you can correct the same. If your name as per ITD database displayed on the screen is right and all other information is correct, click on the SUBMIT button to reach the net-banking site provided by your bank.

What is the procedure after being directed to the net-banking site of my bank?
Ans. TIN system will direct you to the net-banking facility of your bank. You will have to log on to the net banking site of your bank using the login ID and password/PIN provided by the bank. The particulars entered by you at the TIN website will be displayed again.
You will now be required to enter the amount of tax you intend to pay and also select your bank account number from where you intend to pay the tax. After verifying the correctness, you can proceed with confirming the payment.

What will happen after I confirm the payment of tax at my bank's site?
Ans. Your bank will process the transaction online by debiting the bank account indicated by you and issue an acknowledgment indicating the Challan Identification Number (CIN). You can verify the status of the challan in the "Challan Status Inquiry" at NSDL-TIN website using CIN after a week after making the payment.

How can I know that I have completed tax payment using this facility?
Ans. Apart from the CIN given to you, you can check your online bank statement to verify the tax payment.

Do I have to attach the acknowledgment counterfoil with my return?
Ans. No, it will be considered sufficient proof if you quote your Challan Identification Number (CIN) as mentioned in your counterfoil in your return.

What are the timings for making payment through internet?
Ans. You will have to check the net-banking webpage of your bank's website for this information.

in my view 24 x 7

How secure is the transmission of data to the website for e-tax payment?
Ans. All transmission through NSDL-TIN website is encrypted and is with Secure Socket Layer (SSL) authentication. With respect to the banks, it depends on the security measures provided by the bank for net-banking.

How does this system of payment of taxes through internet benefit me as a taxpayer?
Ans. This system is beneficial to you as you are not required to personally visit the bank to make the payments. Payment can be made electronically at your convenience from any place where an internet facility is available e.g. your office, residence, etc. Further, you get the Challan Identification Number (CIN) online, which is required by you when you file your return.
Whether tds is also liable to be paid online?????-A view,check what RBI thinks about it
Update:clarification on tds mandatory epayment and payment from other's bank accounts has been issued vide circular no 5/2008 dt 14/05/2008

please comment
related articles
E-payment of taxes mandatory from 01/04/2008
CHECK YOUR INCOME TAX REFUND STATUS ONLINE
VERIFY PAN ONLINE FREE(APPLY THROUGH NSDL/UTI/OTHERWISE)
KNOW YOUR INCOME TAX DEPOSITED/DEDUCTED/PAN TAX LEDGER
KNOW YOUR SERVICE TAX CODE
KNOW YOUR SERVICE/EXCISE DEPOSITED

HOW CAN I KNOW (PRINT ITR-V) AFTER E FILLING
HOW TO APPLY NEW PAN ONLINE/OFFLINE & CHANGE/CORR...
BARE ACT VAT,VAT FORMS,RULES ALL INDIA STATEWISE

20 comments: Post Yours! Read Comment Policy ▼
PLEASE NOTE:
We have Zero Tolerance to Spam. Chessy Comments and Comments with Links will be deleted immediately upon our review.

  1. While this is really good, How many people would really have netbanking facility? - leave alone personal computers or laptops? It would only increase reliance on middlemen, who know how to operate computers and internet, and on tax practitioners who have such electronic facilities.

    ReplyDelete
  2. I just found your blogs through a search engine last night. I must appreciate you on the service you are doing by explaining things so clearly. Thank you.

    I have a doubt. Today (28th March 2009) I was running around some designated banks who can accept the service tax payments. I was wondering if this can be done online? This blog post of yours talks about online payment of income tax. But is there a provision to pay service tax online? If yes, can you do a favour by writing about it?

    Thanks and Regards,
    Partha.

    ReplyDelete
  3. We can also pay service tax online .The procedure is identical .The difference between both the methods are that in service tax we have to select the accounting code for each service.the link for online service tax is
    https://cbec.nsdl.com/ESTStatic/html/security/Index.html

    ReplyDelete
  4. Hello Rajan,
    Thanks for the clarifications. I have few questions regarding the process and the clarifications that you posted here. It will be great if you could throw some more light on this:
    1 -> The new challan process is across tax sections. But are you still allowed to do multiple challans for a TAN in a month?
    2 -> Is there any information on the format of the deductee details file that has to be uploaded as part of the form 17
    3 -> When you have completed the challan process will there be another file for download with the deductee details updated with "Unique Transaction Number" and PAN validity indicator if there are more than 10 deductees in the challan. Or is it that you will have this only in the web-page (copying this then will be highly error-prone)

    Many thanks in advance,
    Arpan

    ReplyDelete
  5. point wise answer to ur queries

    1.yes we can deposit multiple challans
    2.no information yet but like other file it may l be text file , generated through some fvu
    3.detail awaited.I will inform you in my posts as and when it comes .

    ReplyDelete
  6. for paying self assessment tax the cheque addressed to

    ReplyDelete
  7. I have been deposited TDS through internet banking.In the process of filing chalan 281 I mark on wrong section. I want to deposit the amount in section 194c but I deposit the amount in section 192b. What can do for correct the same? Please help me.

    ReplyDelete
  8. Dear Aony

    You can apply to ITO for correction ,detail is given here

    http://www.simpletaxindia.net/2011/11/new-procedure-for-correction-in.html

    ReplyDelete
  9. I am having net-banking facility. One of my friends is a senior accountant in private school. On request of my aforesaid friend I am depositing TDS of this school regularly through my net banking account after taking cheque in favour of me for the TDS amount from the school .

    My query is “Whether school administration have to deduct some TDS of mine as they are issuing various cheques of TDS U/S 192B, 194C etc.every month in my name? ”

    Pls help me and guide me if something wrong in such process.

    ReplyDelete
    Replies
    1. There is nothing wrong in transaction .Further I assume that you are not charging any fees from them so TDS is not deductible a you are providing service free of charge.

      My suggestion to you that school must open a zero balance online net banking account and you should do the same from school account

      Delete
  10. My bank has deducted TDS @10% for FD's and i am in 20% bracket. I want to deposit the remaining TAX online. I am selecting challan no.280. I want to know which option to be selected for tax applicable 0020 or 0021 and which option to be selected for type of payment(100,102,300,400,106,107).

    ReplyDelete
    Replies
    1. you should select 21 (non corporate assessee) and 300(self assessment tax) and assessment year as 2012-13

      Delete
  11. For current year FY 11-12, what is the assesment year to be selected to pay due tax? 11-12 or 12-13?
    I'm confused, please help

    ReplyDelete
    Replies
    1. For balance tax for financial year 2011-12 select assessment year as 2012-13

      Delete
  12. MY EMPLOYER HAS DEDUCTED LESS TDS DUE TO A FAULT IN NOT ADDING THE ARREARS IN ANNUAL SALARY FOR AY 2013-14. I HAD E-FILED RETURN TOO. NOW HOW SHOULD I FILE THE REMAINING TDS AND PLEASE ALSO TELL HOW TO FILE THE REVISED RETURN?

    ReplyDelete
    Replies
    1. you should deposit balance tax in challan 280 , read details from below link but change assessment year to ay 2013-14

      how to self assessment tax deposit tax

      further read how to revise return here
      how to revise income tax return

      Delete
    2. Thanks a lot sir for the valuable information

      Delete
  13. also please inform about which form to use and other options to fill in e-payment of tds

    ReplyDelete