Income Tax is a government levy imposed on individuals or entities (taxpayers) that vary with the taxable income or profits of the taxpayer. Income Tax Payment can be made for:
> Advance Tax
> Self Assessment Tax
> Outstanding tax demand payment
Advance Tax
Where annual tax dues are more than Rs 10,000, assessee must pay income tax in advance. Due Dates of payment of Advance Tax for FY 2015-16:
For Individuals:
| On or before 15th June | – |
| On or before 15th September | Up to 30% of tax |
| On or before 15th December | Up to 60% of tax |
| On or before 15th March | Up to 100% of tax |
Self Assessment Tax
Income tax return cannot be submitted to the tax department, unless you have paid the tax dues in full.
Outstanding tax demand payment
Income Tax Department issue demand notice claiming short tax payment in previous years. If assessee agrees to the payment then such tax shall be paid online.
How to pay Income Tax online
> Select Challan 280
Go to the tax information network of the Income Tax Department and select Challan 280.
> Enter Personal Information
Enter details such as
- PAN
- Address of the taxpayer
- Assessment Year
- Head Code
- Type of payment
- Select the bank name from the drop down provided
For individuals paying tax, select 0021 (Other than Companies).
‘Type of Payment’:
- If you are paying taxes after the Financial Year has ended, select ‘Self Assessment Tax’
- If you are paying taxes during the Financial Year, select ‘Advance Tax’
- if you get a demand notice from the Tax Department, select ‘Tax on Regular Assessment’
> Verification of details filled
Verify the details entered by you. In case you have made a mistake in data entry, click on “EDIT” to correct the same. If all the detail and name as per ITD is correct, click on “SUBMIT” button. You will be directed to the net-banking site provided by your bank.
> Generation of Challan 280
Your bank will process the transaction online by debiting the bank account indicated by you and on success generate a printable acknowledgement indicating the Challan Identification Number (CIN).