Everyone understands the importance of paying taxes and the consequences of non-payment. A salaried person can get the taxes deducted monthly from their salaries. But for others, they need to file direct taxes. Additionally, when people go for e filing of income tax return, they can know whether they need to pay more taxes or not.
If you are someone who has to pay taxes, you can use the e-payment tool launched by the Income Tax Department. It is the facility through which taxpayers can make the payment online directly to the IT department. Let’s understand the same in detail through this article.
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What is E-Payment of Income Taxes?
In India, taxpayers have two options for paying direct taxes to the Income Tax Department – physical and e-payment modes. In the physical mode, the taxpayers can make the payment by producing the authorized bank’s challan’s hard copy.
Whereas, in the case of the e-payment mode, the taxpayers get the option of making online payments of their direct taxes. They can choose to pay it through net banking of any authorized bank in India. Not everyone is allowed to go for a physical mode of tax payment, and one can discuss it with an online tax consultant to get clarity around the same.
Who Needs to Make E-Payment of Their Income Taxes?
In the case of e-filing of income tax return, you get to know your requirement of paying taxes. You should first check whether you can pay physically or through e-payment mode only. The below people are not allowed to make physical payments of their direct taxes; instead, they can only go for e-payment:
- All companies
- All non-corporate taxpayers who are required to get the audit of their accounts done under section 44AB of the IT Act.
The rest of the taxpayers who do not fall under the above two categories can choose between e-payment and physical income tax payment. Although, it is often recommended to go for e-payment since it saves time and effort.
Are There Any Requirements for E-Payment?
The first requirement for e-payment of taxes is to have a net banking facility. This net-banking facility should be in a government-authorized bank. Now, some people may not have an account in an authorized bank. Can they go for e-payment? Yes, they can.
If an authorized banking account is non-existent, taxpayers can choose to pay through someone else’s account. The only thing, however, to remember is to make the tax payment under their own name.
What are the Benefits of Going with the E-Payment Mode?
Below are the benefits of using an e-payment mode for paying taxes:
- Using the e-payment method is time-saving and is even simpler to use. Taxpayers can do it from anywhere in their comfort.
- The tax amount gets instantly transferred from the taxpayer’s bank account.
- Taxpayers can also check with the income tax department whether they received the funds by visiting their official website.
- The e-challan details are directly sent to the IT department through this mode. There is no data entry that the bank has to do.
- A tax payment receipt is issued for the taxpayer as soon as the amount gets deducted.
Different Taxes That Can Be Paid Through E-Payment
Listed below are the different taxes that one can choose to pay through the e-payment mode and their challan numbers for your reference:
- Income Tax – ITNS280 and ITNS284
- Corporate Tax – ITNS280 and ITNS284
- Equalization Levy – ITNS285
- Securities Transaction Taxes (STT) – ITNS282
- Tax Deducted At Source (TDS) -Form No 26QB and Form 26QC
- Tax Collected At Source (TCS)
- Wealth-tax and other direct taxes – ITNS282
To Conclude
Paying taxes is an essential responsibility of every Indian citizen. Whether they are employed or self-employed, they are required to pay taxes. Although the e-payment method is mandated for companies and non-corporate taxpayers who must get their accounts audited, others can also choose it while they are e-filing of income tax return. It is the perfect way of paying taxes fast and efficiently.
