A Guide on
Income Tax Online Payment

The Government of India has offered a facility to pay income tax online. Though taxpayers can pay income tax over the counter, an online payment is preferred.

This guide will explain how to generate an income tax challan and how to do Income Tax online payment.

Guide on Income Tax Online Payment

Eligibility for Income Tax Payment

India has adopted a progressive income tax structure. In other words, the higher the income, the higher the tax rate slabs. However, if an individual’s income is below the taxable limit, one can still file no return to receive the benefits associated with filing income tax.

Following are the categories of taxpayers who can pay income tax online:

Eligibility for Income Tax Payment
  • right-vector Citizens of India, irrespective of their income (those who do not fall within the minimum taxable limit can file nil ITR).
  • right-vector Senior citizens of India, irrespective of their income.
  • right-vector A firm (falling under guidelines of section 44AB), Cooperative Society, BOI, AOP, Artificial Juridical Person, and Local Authority (ITR 5).
  • right-vector Individuals who are residents of India but own property or have financial interests situated outside of India.
  • right-vector An assessee who is responsible for filing returns U/S 139 (4B) (ITR7)
  • right-vector If you claim tax relief under sections 90 or 90A or the deductions were claimed as per section 91.
  • right-vector All companies are liable to pay income tax.

List of Authorized Banks Providing Facility of Online
Income Tax Payment

The following is an up-to-date list of banks providing facility of income tax challan online payment via the e-filing portal:

  • Axis Bank Axis Bank
  • Bandhan Bank Bandhan Bank
  • Bank of Baroda Bank of Baroda
  • Bank of India Bank of India
  • Bank of Maharashtra Bank of Maharashtra
  • Canara Bank Canara Bank
  • Central Bank of India Central Bank of India
  • City Union Bank City Union Bank
  • DCB bank DCB bank
  • Federal Bank Federal Bank
  • HDFC Bank HDFC Bank
  • ICICI Bank ICICI Bank
  • IDBI Bank IDBI Bank
  • Indian Bank Indian Bank
  • Indian Overseas Bank Indian Overseas Bank
  • IndusInd Bank IndusInd Bank
  • Jammu and Kashmir Bank Jammu and Kashmir Bank
  • Karur Vysya Bank Karur Vysya Bank
  • Kotak Mahindra Bank Kotak Mahindra Bank
  • Punjab National Bank Punjab National Bank
  • Punjab & Sind Bank
  • RBL Bank RBL Bank
  • State Bank of India State Bank of India
  • South Indian Bank South Indian Bank
  • UCO BANK UCO BANK
  • Union Bank of India Union Bank of India

Income Tax Online Payment — Step-by-Step Process

The Income Tax Department of India has provided a facility for paying income tax online through the official portal. Here is the step-by-step procedure to file income tax online:

Documents Required for Income Tax Online Payment & Return Filling

  • Form 16 Form 16
  • PAN Card PAN Card
  • Tax saving investment proof Tax saving investment proof
  • Aadhaar Card Aadhaar Card
  • Aadhaar Card Home loan statement
  • Aadhaar Card Capital gain Statement
  • Aadhaar Card Salary slips and bank statement
  • Form 16 Form 16A, Form 16 B, or Form 16C
  • Tax saving investment proof Interest certificates issued by bank or post office
  • Form 16 Form 26AS

How to Make Income Tax Payment Online​?

Follow the instructions to make income tax online payment:

Step 1
Visit the e-filing portal of the Income Tax Department of India.
Step 2
  • Go to the ‘Quick Links’ section.
  • Click on ‘e-pay Tax’.
  • Search for ‘e-pay Tax’ in the search box.
Step 3
Enter your PAN twice for confirmation on the ‘e-pay Tax’ page. Then, enter your mobile number and click on ‘Continue.’
Step 4
Enter the six-digit OTP received on your mobile phone. Then click ‘Continue’.
Step 5
Select the first box labeled ‘Income Tax’ and click on ‘Proceed.’
Step 6
Select the assessment year and Type of Payment as ‘Self-Assessment (300)’. Once you have ensured all the details you entered are correct, click ‘Continue’.
Step 7
On the next page, enter all the tax details.
Step 8
Select the preferred method of payment.
Step 9
Preview the challan details (make edits if required) and click on ‘Pay Now’.
Step 10
Once the payment is processed successfully, you will see an acknowledgment on the screen along with the BSR code and Challan serial number. Save a copy of this tax receipt for future reference.

Frequently Asked Questions on Online Invoice Software

What is the difference between challan 280 and 281?

I need to correct my income tax challan. Can I edit it?

Can we pay income tax online after the due date?