E-PAYMENT

E-PAYMENT OF TAXES MADARORY FROM 01.04.2008

CBDT has issued press release dated 23rd January , 2008
regarding mandatory e-payment of taxed from 1st April,
2008

e-Payments
• The scheme of electronic payment of taxes for
income-tax payers was introduced in 2004 and it was
optional
• With a view to expand the scope of electronic payment
of taxes, it is proposed to make the scheme
mandatory for the following categories of tax-payers:
o All corporate assesses;
o All other assesses covered under mandatory tax
audit
• The scheme of mandatory electronic payment of taxes
for income-tax payers is proposed to be made
applicable from 1st April, 2008.
• Tax-payers can make electronic payment of taxes
through
o the internet banking facility offered by the
authorized banks.
o internet by way of credit or debit cards.
What is e-Payment
• e-Payment a facility provided to the taxpayers to
make income tax payments through internet using
net-banking facility.
• You must have a bank account with net-banking
facility, and Your bank is amongst the banks that
provide the e-tax payment facility.
Procedure for e-payment
• Log on to the NSDL-TIN website. Click on the icon 'Pay
tax online'
• To pay taxes online the taxpayer will select the
relevant challan :
- ITNS 280: Income Tax
- ITNS 281: TDS / TCS
- ITNS 282: STT / Wealth Tax
- ITNS 283: FBT / BCTT
• Enter the following details
o PAN for non-TDS payments and TAN for TDS
payments
o Name and address of the taxpayer
o Assessment Year
o Major Head Code
o Minor Head Code
o Type of Payment

• If PAN/ TAN is valid the taxpayer will be allowed to fill
up other challan details
• 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 netbanking
site of the bank.
• 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.
• 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.
• 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.
Benefit of e-Payment
• 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.
• You get the Challan Identification Number (CIN)
online, which is required by you when you file your tax
return / eTDS Statement
Banks offering e-Payment Facility
Axis Bank State Bank of India
Punjab National Bank Indian Overseas Bank
Canara Bank Indian Bank
Bank of India Corporation Bank
SBBJ State Bank of Travancore
State Bank of Indore Vijaya Bank
HDFC Bank Oriental Bank of Commerce
State Bank of Patiala Bank of Baroda
IDBI Bank. Union Bank of India
More banks may be added in future