Tips to Remember Before Doing Online Income Tax Payment

Giving tax is necessary and every citizen’s duty. The Indian tax system is of two categories- direct and indirect tax. And both of these are an essential part of the growth and progress of the nation. 

income tax payment

Let’s discuss in detail to have a bigger look at the concept of tax and how things work to understand better.

Direct Tax

This type of tax is the tax that one individual pays to the government directly from the income they make. This tax is broadly divided into the Income Tax and the Corporate Tax.

Indirect Tax

This is the tax that is collected by someone else on your behalf and is paid to the government. The tax that you pay on the bills of restaurants, theaters, e-commerce sites or any other goods and services is known as the indirect tax.

Classification Of Direct Tax

As mentioned earlier that the direct tax can be further divided into two divisions and they are:

  • Income Tax which is the tax paid by the individuals or a HUF.
  • Corporate Tax is the tax that a company pays on the profit they make in a financial year.

Now, let’s talk about the IT Return filing steps to help you with successful online income tax payment.

Steps Of ITR Filing

  • At first, one has to visit the official website of the Income-tax Department. There one has to select the e-pay tax option. Recently, there is also a new system of Quick ITR introduced. Here as you fill the ITR form you will automatically get the e-pay option.
  • With the e-pay link, you will be taken to the website of the National Securities Depository. There you need to select the Challan 280. Here you will need to choose the 0021 option under ‘Tax Applicable’.
  • Next, you need to select the self-assessment tax option where you need to properly fill all the details. Make sure to select the assessment year correctly.
  • For the payment mode, you can choose the internet banking option or use your debit card. After the payment challan is done one will see the challan counterfoil. This will include the details of the tax paid, BSR, bank branch code and a serial number of the challan. You may also save the challan as a proof of the document.

Tips To Do Tax Payment Successfully

To make online income tax payment one has to remember some of the basic things. These are:

  • No matter what you make, self-assessment or advance tax payment you need to select the correct assessment year. If the year you chose is wrong, your entire effort will be lost. This assessment year is the year that comes after the financial year. The return has to be filed for that particular year. To understand this let’s look at an example:

Say you want to file ITR for the financial year 2017-2018, then your assessment year will be 2018-2019. So if you are making advance payment for the ongoing financial year say, 2018-19, you will require to select 2019-20 as your assessment year. In the case of self-assessment tax payment for the previous year, you will select the current year.

  • Make sure that you select the code correctly. During online payment, there will be separate codes for representing the tax types. This code if selected wrong, then the tax made will not reflect in the Form 26AS. Remember to select the code 0211 if you are an individual taxpayer.

Apart from the above-mentioned guidelines and necessary information about tax payment through online mode, there are few other points to know.

First of all, income tax return online is mandatory for all sections of taxpayers except taxpayers above the age of 80 or someone who has income less than 5 lakhs and not claiming a refund.

For people who are planning to make online tax payment soon, must keep all these details in mind. That way the entire process of tax payment will be easy and error-free. Above all, one has to remember that tax must be paid on time and without any failure. Make sure to keep all the necessary details and documents ready at the time of tax filing.