Income Tax

Benefits of Paying Tax Online

Dec 01, 2021
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Income tax is a compulsory payment made by the taxpayer to the government on a yearly basis by virtue of him or her falling under a specific tax slab. Incidentally, it is one of the biggest sources of revenue for the government. With the e-payment facility being launched by the Income Tax Department, the income tax can be paid by the taxpayer in a matter of a few quick steps.

How to pay income tax online?

Online tax payment is mandatory for companies and individuals to the provisions of Section 44AB of the Income Tax Act, 1961. This must be made in the form of ITNS 280. The process is rather simple – it can be completed in a matter of a few steps. But before doing so, one has to calculate the tax payable by checking the individual income, the interest payable, deductions, etc. 

One must login on the official government income tax filing website and go to the e-payment section where personal details such as the PAN number, address of the taxpayer, assessment year, phone number, email ID, bank name, etc. must be filed and confirmed. 

The payment has to be made via a debit card or net banking. Once that is successfully completed, the challan counterfoil will be generated and the same can be printed or saved on one’s desktop. 

This e-payment facility can be availed through a host of banks ranging from Axis Bank to Dena Bank, from ICICI Bank to Vijaya Bank.

Documents that are required for paying the tax online

  • Form 26AS for proof of taxes paid; 
  • PAN number;
  • Income sheet which has details about one’s income, expenses/deductions and taxes to be paid;
  • Information of additional income details such as rent on the property, winning a lottery, capital gains on shares, etc.
  • A debit card or net banking and internet connection.
  • Net banking enabled account with an authorised bank.

The different benefits of paying your taxes online

  1. The tax amount gets deducted instantly. Therefore, even a payment made at the last minute will not attract any penalties from the tax department.
  2. The taxes can be paid from any location and at any time via the net banking account. It is time-saving.
  3. The tax returns will be shown in the form of a challan and the same can be printed or saved on one’s desktop. If one happens to lose the hard copy of the challan or receipt, then it can easily be retrieved online. 
  4. The proof of payment will be available as a transaction id in one’s bank’s statement.
  5. The taxpayer can even check if the money has been received by the IT department on the website https://tin.tin.nsdl.com/oltas/index.html.
  6. The personal information that is given is kept safe and confidential. There is no risk attached to the transaction as they are encrypted via a Secure Socket Layer.
  7. One can also get the help of the department in case there is any e-payment. There is handholding support offered in the form of a toll-free number 020 - 27218080 or writing an email to tininfo@nsdl.co.in.

Beyond these, there are certain other benefits that are available for those paying taxes such as swift visa approval, quick loan approval, and valid, authentic proof of income.

Conclusion

The advancement in technology has made the process of paying taxes a simple, hassle-free affair. Having a good track record of paying taxes on time, has its own perks, one of which is that you will come across as a responsible citizen with excellent credibility in the eyes of a potential lender. 

One may even be eligible for tax benefits under Section 24 of the Act for having been prompt and diligent. It is important to be prompt and fair in the payment of taxes to the government.

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