September 11, 2008

How to Make E-Payment of Taxes

Payment to Income Taxes through Internet Banking has been made mandatory by the Income Tax Department in India earlier this year for all the companies and others whose annual turnover is more than Rs. 40 Lacs. For others also this option is available though not mandatory.
To pay your taxes electronically, all you have to do is to have a net banking account (you may also use the account of someone else also) (list of authorised banks is available at ) and follow the below mentioned simple procedures :
  1. Keep your PAN card available (as you need fill in details from it)
  2. Go to
  3. Select the type of challan you need to fill. Individuals need to fill Challan No. 280 for their taxes.
  4. The Challan form will open up. Individuals and other tax payers who are not companies select '(0021) Income Tax Other Than Companies' option. Companies need to select '(0020) Income Tax on Companies' option.
  5. Fill in the other details from your PAN card.
  6. Select the relevant Assessment year. For those paying their advance taxes for their incomes of financial year 2008-09 the assessment year will be 2009-10. For those paying their taxes for their incomes of financial year 2007-08 the assessment year will be 2008-09.
  7. Select the bank and click proceed.
  8. You will be navigated to the internet banking login page of you bank.
  9. Login into your account. The challan filled up by you will appear.
  10. Enter the amount of tax to be paid and click on the 'Pay' button.
  11. Enter your Net Banking Transaction Password and proceed.
  12. The bank will authorise your transaction and you're done.
  13. The copy of acknowledgement of payment will appear that can be downloaded and printed.

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