E-payment of taxes : FAQ

Aisha , Last updated: 12 November 2007  
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e-Payment of Taxes

e-Payment facilitates payment of direct taxes online by taxpayers. To avail of this facility the taxpayer is required to have a net-banking account with any of the banks listed below, which are the only banks offering this facility at present.

Account Holders of

Axis Bank
State Bank of India
Punjab National Bank
HDFC Bank
IDBI Bank
Union Bank of India


Procedure for e-payment:
1. To pay taxes online the taxpayer will select the relevant challan i.e. ITNS 280, ITNS 281, ITNS 282 or ITNS 283, as applicable.
2. Enter its PAN / TAN as applicable. There will be an online check on the validity of the PAN / TAN entered.
3. If PAN/ TAN is valid the taxpayer will be allowed to fill up other challan details like accounting head under which payment is made, name and address of TAN and also select the bank through which payment is to be made, etc.
4. On submission of data entered a confirmation screen will be displayed. If the taxpayer confirms the data entered in the challan, it will be directed to the net-banking site of the bank.
5. The taxpayer will login to the net-banking site with the user id/ password provided by the bank for net-banking purpose and enter payment details at the bank site.
6. On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.






e-TAX Payment of Taxes – Frequently Asked Questions


1. What is e-tax payment?
Ans. This is a facility provided to the taxpayers to make income tax payments through internet using net-banking facility.
2. Can I use this facility to pay income tax?
Ans. You can, if;
a) You have a bank account with net-banking facility, and
b) Your bank is amongst the banks that provide the e-tax payment facility.
3. How do I know whether my bank provides this facility?
Ans. The list of the banks providing this facility is available on NSDL-TIN website. Alternatively, you may get the information from your bank.

4. What is the procedure for entering the required data on the screen for paying tax online?
Ans. Log on to the NSDL-TIN website. Click on the icon 'Pay tax online'. Choose the required challan.
After choosing the required challan you will be directed to the screen for entering the following data:

PAN for non-TDS payments and TAN for TDS payments
Name and address of the taxpayer
Assessment Year
Major Head Code
Minor Head Code
Type of Payment
In case of challan no. 280, 282 and 283, the Permanent Account Number (PAN) needs to be entered. In case of challan no. 281 Tax deduction Account Number (TAN) needs to be entered. Please ensure that you enter PAN/TAN correctly, as this is extremely important for further processing.The system will check the validity of PAN/TAN. In case PAN/TAN is not available in the database of the Income tax Department then you cannot proceed with the payment of tax. After entering the required data, select your bank through which the tax will be paid. Select your bank from the list of banks providing this facility.
Once you have completed this, click on PROCEED button. TIN system will display the contents you have entered along with the "name" appearing in the ITD database with respect to PAN/TAN entered by you.
5. What is the procedure after entering the required data?
Ans. You can now verify the details entered by you. In case you have made a mistake in data entry, you can correct the same. If your name as per ITD database displayed on the screen is right and all other information is correct, click on the SUBMIT button to reach the net-banking site provided by your bank.
6. What is the procedure after being directed to the net-banking site of my bank?
Ans. TIN system will direct you to the net-banking facility of your bank. You will have to log on to the net banking site of your bank using the login ID and password/PIN provided by the bank. The particulars entered by you at the TIN website will be displayed again. You will now be required to enter the amount of tax you intend to pay and also select your bank account number from where you intend to pay the tax. After verifying the correctness, you can proceed with confirming the payment.
7. What will happen after I confirm the payment of tax at my bank's site?
Ans. Your bank will process the transaction online by debiting the bank account indicated by you and issue an acknowledgment indicating the Challan Identification Number (CIN). You can verify the status of the challan in the "Challan Status Inquiry" at NSDL-TIN website using CIN after a week after making the payment.
8. How can I know that I have completed tax payment using this facility?
Ans. Apart from the CIN given to you, you can check your online bank statement to verify the tax payment.
9. Do I have to attach the acknowledgment counterfoil with my return?
Ans. No, it will be considered sufficient proof if you quote your Challan Identification Number (CIN) as mentioned in your counterfoil in your return.
10. What are the timings for making payment through internet?
Ans. You will have to check the net-banking webpage of your bank's website for this information.



11. If I encounter any problem while making payment through Internet, whom should I contact?
Ans. If you face any problem in the NSDL-TIN website, you should contact us at tininfo@nsdl.co.in OR telephone no. 022-24994650. However, if you face any problem with the net-banking webpage of your bank, then you should contact your bank for assistance.
12. Where should I make inquiries about my tax payments through internet?
Ans. You should contact your bank for queries about your payment transactions through internet.
13. Which are the banks offering the facility of e-tax payment?
Ans. At present, HDFC Bank, IDBI Bank, State Bank of India and Union Bank of India (for old challans 280,281,282) and UTI Bank (for new challans 280,281,282,283) offer the facility of e-tax payment. NSDL is working with other banks and their names will be notified as soon as the respective banks are ready.
14. How secure is the transmission of data to the website for e-tax payment?
Ans. All transmission through NSDL-TIN website is encrypted and is with Secure Socket Layer (SSL) authentication. With respect to the banks, it depends on the security measures provided by the bank for net-banking.
15. How does this system of payment of taxes through internet benefit me as a taxpayer?
Ans. This system is beneficial to you as you are not required to personally visit the bank to make the payments. Payment can be made electronically at your convenience from any place where an internet facility is available e.g. your office, residence, etc. Further, you get the Challan Identification Number (CIN) online, which is required by you when you file your return.
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Published by

Aisha
(Finance Professional)
Category Income Tax   Report

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