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E-PAYMENT OF DIRECT TAXES

There are two modes of payment of direct taxes (i) physical mode i.e. payment by furnishing the hard copy of the challan at the designated bank; and (ii) e-payment mode i.e. making payment by using the electronic mode. In this part, you can gain knowledge about various provisions relating to e-payment of various direct taxes

Introduction:-

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Earlier, we used to stand in queue for hours to book movie tickets, railway tickets, etc. but now we can relax at our place and perform these tasks using the internet. With the development of technology, the Government has also upgraded itself. Previously, the taxpayers have to wait in long queues at the banks for making the payment of tax, but after the introduction of e-payment facility one can pay tax quite comfortably from any place by using internet banking facility of the authorised banks.

Mandatory or compulsory e-payment:-

It is compulsory for the following taxpayers to pay tax using the e-payment mode only (i.e., using internet banking facility). In other words, following persons cannot use the physical mode of payment of tax and have to pay the tax electronically using the epayment facility:

  • All companies
  • All taxpayers other than company who are liable to get their accounts audited as
    per section 44AB.

Optional e-payment:-

As discussed earlier, e-payment is mandatory for all companies and all non-corporate taxpayers covered by audit under section 44AB. A person not covered in the mandatory category can voluntarily pay his tax by using the e-payment mode. E-payment saves time and efforts.

Benefits of e-payment:-

E-payment is time saving, simple, safe and this facility can be used at any time from anywhere.

Requirements for making e-payment:-

For making e-payment of taxes one should have only two things, an internet connection and a net banking enabled account in an authorised bank. If the taxpayer does not have a net banking enabled account, then he can make e-payment using a net banking enabled account of any other person but the tax should be paid in his name.

Taxes which can be paid electronically:-

Following direct taxes can be paid using the e-payment mode :

(1) Income-tax
(2) Equalization Levy
(3) Corporate tax (i.e., income-tax paid by a company)
(4) Tax deducted at source (TDS)
(5) Tax collected at source (TCS)
(6) Securities Transaction Tax (STT)
(7) Wealth-tax and other direct taxes like gift tax, expenditure tax, etc.

Nature of challan to be used:-

Following are the Challans to be used for making payment of different direct taxes:

Challan No Nature of tax payment
ITNS 280 For making payment of income-tax and Corporate tax (i.e. income-tax by companies)
ITNS 281 For making payment of TDS/TCS by corporate and non-corporate deductors/collectors
ITNS 282 For making payment of Securities TransactionTax, Wealth Tax and other direct taxes.
ITNS 284 For making payment of income-tax and corporate tax (i.e. income-tax by companies) in case of undisclosed foreign Income and Assets.
ITNS 285 For making payment of Equalization levy
Form No. 26QB For making payment of tax deducted at source in case of immovable property.
Form No. 26QC For making payment of tax deducted at source in case of rent of property
Form No. 26QD For making payment of tax deducted at source in

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