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Pay Income Tax Due

Process for Payment of Due Income Tax

The following is the process for income tax payment:

  • Go to the TIN NSDL website, which is the official website of the IT Department.
  • Take your cursor on the ‘Services’ option and select ‘e-payment’ form the dropdown menu
  • Select the ‘e-payment: Pay Taxes Online’ option.
  • Click on the challan, as per its relevance to your income source, from these options - ITNS 280, ITNS 281, ITNS 282, ITNS 283, ITNS 284 and Form 26 QB demand payment.
  • Mention the required details like PAN or TAN, challan details, address and details of the bank through which the due income tax amount will be paid.
  • On successful submission of these details, a confirmation message will be generated and displayed on the screen. In case PAN or TAN has been verified as per the ITD PAN / TAN master, the full name of the taxpayer will also be displayed.
  • The taxpayer will then be redirected to the preferred bank’s net banking services page. The User ID and Password has to be correctly entered to login in to the bank’s website for paying the income tax dues online.
  • After the online payment is successfully completed, a receipt will be generated with details like CIN, name of the bank and payment details.

Due Income Tax Payment with Challan 280

Below is the process for individuals to clear income tax dues with Challan 280:

  • Visit the official website of the Income Tax Department (TIN NSDL website)
  • Click on the ‘e-payment’ option and then select ‘Challan 280’.
  • Select ‘0021’ Income Tax. This is not applicable for companies.
  • Mention your personal details like name, addresses, Assessment Year, contact number and email ID. PAN Number and the relevant Assessment Year (AY). For Financial Year (FY) 2018–19, the AY will be 2019–20.
  • Mention your address
  • Select one from the three available payment options –
    • Press ‘(100) Advance Tax’ for Advance Tax
    • Press ‘(300) Self-Assessment Tax’ for selecting the Self-Assessment Tax option
    • Press ‘(400) Tax on Regular Assessment’ for Regular Assessment Tax

Pay Income Tax Due

  • Select your preferred bank through which you want to pay the due income tax and then pay.
  • Enter the Captcha displayed on the screen correctly and then select ‘Proceed’ to complete the online payment via either of the two available online options – Debit Card, Credit Card or Net Banking.
  • The page will be redirected to the payment page of your selected bank. Recheck the personal details and the due income tax amount entered by you thoroughly. Click on ‘Confirm’.
  • A receipt will be generated immediately as confirmation of successful completion of online payment. It reflects the payment details, BSR code and challan serial number on its right side. Keep the receipt safely in case of future reference when the BSR code and challan number has to be mentioned in the tax return.

Declaring the Due Income Tax Paid

After the due income tax has been paid, it’s time to file the income tax return. Mention the 7-digit BSR Code and 5-digit Serial Number of Challan 280.

Payment of Advance Tax

Advance Tax has to be paid by individuals with income tax dues of more than Rs. 10,000, and belong to any of the following categories:

  • Own a business
  • Work as a freelancer
  • Salaried people who enjoy high income from interest, rental income or capital gains

Individuals belonging to these categories have to pay their taxes in advance and not through TDS deductions, as in the case of salaried individuals.

Self-Assessment Tax

Income tax return cannot be submitted to the IT Department unless the entire income taxable amount has been paid in its entirety. However, a certain amount of the taxable amount may remain pending during filing of IT returns. The applicable interest has to be paid under Section 234B and 234C, along with the income tax due, if you are paying after 31st March.

Regular Assessment Tax

This is applicable for individuals who have been intimated by the Income Tax Department to pay additional taxes on their annual income.

Income Tax Payment Due Dates and Penalty

Below are the due dates for income tax payment for FY 2018-19.

Due DatesFor Individuals
On or before 15th JuneUp to 15% of advance tax
On or before 15th SeptemberUp to 45% of advance tax less advance tax already paid
On or before 15th DecemberUp to 75% of advance tax less advance tax already paid
On or before 15th MarchUp to 100% of advance tax less advance tax already paid

The interest for late payment is set at 1% on the amount of tax due. It is calculated from the individual cut off dates shown above, till the date of actual payment of outstanding taxes. Interest under Section 234C is levied, if advance tax paid in any instalment(s) is less than the required amount. In other words, interest under Section 234C in case of deferment of different instalments of advance tax is levied in following cases:

  • If advance tax paid on or before 15th June is less than 12% of advance tax payable
  • If advance tax paid on or before 15th September is less than 36% of advance tax payable
  • If advance tax paid on or before 15th December is less than 75% of advance tax payable
  • If advance tax paid on or before 15th March is less than 100% of advance tax payable

Frequently Asked Questions

What is the penalty levied on non-payment of income tax by 31st March?

The interest for late payment is set at 1% on the amount of tax due. It is calculated from the individual cut off dates shown above, till the date of actual payment of outstanding taxes.

What is Advance Tax?

Advance Tax is the taxable income exceeding Rs. 10,000 payable by individuals in advance, and falling under any of the below categories:

  • Own a business
  • Work as a freelancer
  • Salaried individuals with a high income from interest, rental income or capital gains

Advance Tax is not applicable to those salaried individuals whose annual income is taxable as per DS deductions.

What is Self-Assessment Tax?

Income tax returns cannot be filed unless the entire taxable amount has been paid in full. However, a certain part of the taxable amount may remain pending during IT returns filing. The applicable interest is payable as per Section 234B and 234C of the Income Tax Act, 1961, along with the due income tax, if you are paying after 31st March of the Financial Year.

What is Regular Assessment Tax?

Regular Assessment Tax is for individuals who have been notified by the Income Tax Department to pay additional taxes on their annual income.

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