Digitalisation in India is expanding the scope of conveniences for citizens in the form of services. The e-Tax payment facility by the Income Tax Department makes it possible for taxpayers to pay their direct taxes online. Challan 280 is the form to be filled for payment of Advance Tax, Self Assessment tax, Regular Assessment Tax, Surcharge, Tax on Distributed Profit or Tax on Distributed Income. It can be used for online income tax payment or offline payment of taxes. The offline method involves physical visits to a bank and submitting the Challan 280 along with the payment. However, the online method has become popular as the process is quick and efficient.

Having over two decades of rich industry experience, Alankit Limited which is a registered e-return intermediary, provides professional services for e-filing of income tax returns. The Government’s Electronic Furnishing of Return of Income Scheme 2007 enables Alankit to electronically file income tax returns on taxpayers’ behalf.

Here is a comprehensive guide for taxpayers who are looking to make online income tax payment and file their tax returns.

About Income Tax Payment

Timely payment of taxes and filing of I-T returns is the responsibility of every taxpayer of the country, whether individuals or entities. Income Tax is a percentage of income generated by businesses or individual which they are liable to pay directly to the Government. The money thus collected is utilised by the Government for infrastructural developments and paid to the employees of central and state government bodies.

Offline or online income tax payment for an individual is mandatory under various cases as specified below:

• When TDS deducted is less than an individual''s liability
• When an individual receives the notice from I-T Department to pay the balance tax
• When an individual has other sources of income and combined all together, the tax liability exceeds TDS deducted by an employer

Filing of I-T returns is important to prove that individuals have paid their taxes with the I-T department, to show there are no taxes due on their account and thus avoid penalty. An individual should file I-T returns if his or her total income exceeds Rs 2.5 lakh in a financial year. The income tax slab is Rs 3 lakh for senior citizens and Rs 5 lakh for individuals above 80 years of age.

The process of paying income tax online

Using Challan 280, income tax can be paid online in the most convenient manner. The process is easy and quick, and just requires an internet banking facility. Taxpayers can also use their debit card for online income tax payment. With prompt support by qualified professionals at Alankit, taxpayers can pay their direct taxes through the online facility provided by the National Securities Depository Limited (NSDL). The step-by-step procedures are mentioned below:

• Step 1: Access the e-payment section on the online portal of NSDL.
• Step 2: Choose the relevant Challan from among the list viz. ITNS 280, ITNS 281, ITNS 282, ITNS 283, ITNS 284 or Form 26 QB demand payment (only for TDS on sale of property) as applicable.
• Step 3: Fill in personal details in Challan 280. Individuals must choose 0021 Income Tax (other than companies), following which they must provide their PAN details; select proper assessment year; select their city, PIN code & state; choose option (300) Self Assessment Tax under ‘Type of Payment’; choose payment mode viz. internet banking or debit card and then choose the bank; finally click on ‘proceed’ tab after entering the security code which appears on screen.
• Step 4: Cross verify the details and confirm on the tab ''Submit to the bank''.
• Step 5: Users will be redirected to their selected Bank''s internet banking login screen. After logging in, users will reach another screen wherein they have to break up the tax payable into its components, i.e. ''Basic Tax'', ''Surcharge'', ''Education Cess'', ''Others'', ''Penalty'' and ''Interest''.
• Step 6: After the online income tax payment is made, users can click on the option to download the challan receipt in PDF format. Also, they will receive the challan copy on their registered e-mail id. The receipt will contain the Challan Identification Number (CIN). A proof of the payment, the challan counterfoil will contain CIN, payment details and bank name through which e-payment was made. Using the CIN, taxpayers can check the status of the challan in the Challan Status Inquiry at NSDL-TIN website, after a week of making the payment.

The process after payment of income tax online

Once the income tax is paid through the online facility using Challan 280, taxpayers must show it in their ITR. If they have paid Self Assessment tax through Challan 280, they should fill in the details in Tax Paid and should ensure that their tax liability is Zero before submitting the return.

Taxpayers have many benefits of online income tax payment using Challan 280 that includes:

• Convenience of paying taxes from anywhere as there is no need to physically visit a government office or stand in long queues or write cheques
• Avoid late penalty charges through instant payment acceptance
• Ensuring security and confidentiality of information while paying taxes
• Choice of keeping the receipt either as softcopy or hardcopy
• Getting proof of tax paid in bank statement

Why you should choose Alankit?

Alankit brings vital services like e-filing of I-T returns for its customers, both NRIs and local residents, through its strong network across more than 673 cities and 6120 business locations. Alankit offers the best customer experience by meeting the following objectives:

• Ensuring assesse quotes valid permanent account numbers or tax deduction account numbers
• Checking if particulars of advance tax, self-assessment tax and tax deducted at source (TDS) match with the taxpayer''s documents
• - Maintaining accuracy in data entries during transcription and transmission of return on income
• Ensuring assesse receives hard copy and acknowledgement of e-Returns submitted
• Maintaining confidentiality of assesse information throughout the process, and ensuring any information shared externally is with prior permissions of assesse or assessing officer

Processing of I-T returns is completed in a span of 2 to 3 working days, and depends on the details provided by the assesse.