Many people think Income Tax Payment is a complicated process and tend to delegate it to third party people. This not only costs them more but also at times they can be cheated without them realising it.
Selecting the Correct Challan
The client is to first go to the tax information network of the Income Tax Department and select the correct challan. There are a number of challans on the website but the correct one being Challan 280.
Entering Personal Information
The next step of Income Tax Payment is to fill in the correct personal information. If an individual has to pay the taxes, the following steps are to be followed:
- Please choose (0021) Income Tax (other than companies)
- Selecting the correct Assessment Year from the dropdown list
- Choosing (300) Self Assessment Tax if the taxes are being paid after the end of financial year.
- After that enter the details like PAN, address, Bank name etc.
To be noted: select (100) Advance Tax if the taxes are being paid during the financial year.
- If the tax is being paid in response to a demand notice from the Income Tax Department, then (400) Tax on Regular Assessment has to be selected.
Once the above steps has been completed by the client, the next step is Income Tax Payment is to thoroughly check the information filled. After that, they will be redirected to the Net Banking page. The client has to check clearly the information entered there and also has to be paid in the income tax field.
Note: the client can leave blank the spaces that are related to surcharge, education cess, interest and penalty. It is enough that the client puts in the complete amount to be paid in the Income Tax field entirely.
The next procedure in Income Tax Payment process after properly filling in the bank details is to generate the challan. After the payment is done, the client will get a receipt. The receipt is known as challan 280. It appears on the next screen. The client will be able to see the details of his payment. For future purposes, the client needs to note down the challan serial number and the BSR code.
Note: the client must remember to keep a copy of tax receipt. He can do so by taking a screenshot of the challan. They will need to put in the BSR code and the challan number into the tax return.
Missed Saving a Copy
The client need not panic if they miss to keep a copy of the tax return. In case they have forgotten to download a copy of the Challan 280, all they have to do is to log into their Net banking account, and they can easily retrieve a copy of the receipt. Following are the steps to retrieve a copy of challan for three banks:
- SBI account holders: The SBI account holders have to log in to their net-banking. After that, they have to go to e-tax (present on the header tab). Next select Reprint Challan (present on the sidebar) which allows them to view the challan. Take a screenshot of the same.
- ICICI account holders: The ICICI bank account holders have to similarly login to their net-banking. Select payments and Transactions on the header. They have to select Tax Centre after that and continue to select e-Tax Challan from the next list.
- HDFC account holder: The HDFC bank account holders need to login to their net-banking account and select “Request’’ from the sidebar. They have to scroll down and select the option Regenerate Direct Tax Challans. The screenshot has to be taken for retrieving a copy of the challan.
Filing Returns after the Payment
To continue with Income Tax Payment, the client has to report the information that they have made the tax payment in their Income Tax Return. This can be done by the client by going to the Taxes Paid Summary Page which is present on Clear Tax in order to update the same information. After going there, the client should choose the “Tax Self Payments” tab and then put in the challan number and BSR code from the Challan 280 that they had been asked to note down.
Important: BSR code will be a seven digit number and the challan serial number will be of 5-digits.
Income Tax Payment Made for Following:
- Advance Tax: When the annual tax does in more than Rs 10,000, then the client must pay income tax in advance. This is the case of a salaried individual where the Income Tax Payment is taken care of by the employer through TDS deductions.
- Self-Assessment Tax: In case the income tax return can’t be sent to the IT Department unless the client has paid the tax due in full. The tax amount is paid online, which means the return will be successfully e-filed afterwards.
- Outstanding Tax Demand Payment: Whenever the client has to make Income Tax Payment in order to comply with Income Tax demand notice. Then if an agreement is reached with assessing officer, the income tax is paid online.