How to Pay Income Tax Online in 5 Simple Steps

You are filing the income tax return and while checking the 26AS tax credit statement. Then you see that there is income from fixed deposits and others but you have not paid income tax for that. For salaried employees, the employer is responsible for the correct tax deduction and payment to the Government on behalf of the employee.

You need to furnish the other income to the employer other than the salary. If you have forgotten to show the income and form-16 is generated you need to pay it by yourself. This article will guide you how to pay income tax online.

Other than the above reason you may also have to pay income tax in case you have got a notice for balance tax from the income tax department.

What is Self-Assessment Tax?

The income tax is to be completely paid when you file your income tax return unless you cannot file the return. So, you have to pay the income tax online so that you can successfully file return instantly. You have to use Challan no 280 for payment of due income tax.

How to pay income tax online step by step:
  1. First, you click on this link and click on the Challan No. 280 which is applicable for payment of income tax.
  2. Fill the details on challan 280 form.
  • Select (0021) Income tax (Other than companies).
  • Put your PAN
  • Select the assessment year. The assessment year is the next to the financial year. If you want to pay income tax for the financial year of 2016-17, you have to choose 2017-18 as the assessment year.
  • Fill the address details, mobile number, and email id.
  • Choose the type of payment as ‘Self-assessment tax’ in this case. You can also use this challan for advance tax.
  • Choose the bank name from which you want to pay the tax via online banking.
  1. In this step, one page will be shown with all the details what you have filled up. Check all the details thoroughly including the name which is fetched by the system linked with PAN.
  2. Enter the login Id and password for the internet banking facility to pay the tax. You can also pay the tax through the debit card.
  3. Enter the income tax amount and complete the payment process.
  4. Download the challan receipt for your future reference.
You can also pay the income tax offline with the challan 280 with the following steps:

  1. Download the challan 280 from income tax website.
  2. Fill up the PAN, full name and address.
  3. Fill the details of payments including education cess, interest, penalty etc. if applicable.
  4. You can pay the money in cash, account debit or cheque.
  5. The bank official will give you one acknowledgment. The acknowledgment should have the followings:
    • 7 digit BSR code of the bank branch
    • Date of deposit of challan in DD-MM-YY format
    • Challan Serial Number
  6. The bank will upload all the data and report to income tax department within 3 working days.
  7. The tax details shall be updated in 26AS tax credit statement. If not done, contact the bank branch for further clarification.
  8. If you want to know your challan status you can check online.

Also Know: What is Advance Tax and How to pay Advance Tax?

Hope, this will help you to pay the self-assessment tax. If you have any query or suggestion, write in the comment box below the article.