How to Pay Income Tax Online in India? Step by Step Guide [Updated]

In India, Income tax forms a major part of direct tax collection. The government collects Income Tax from the individuals and the tax slabs are revised every year. It is the duty of each one of us to pay the income tax diligently. Non-Compliance can even attract strict monetary penalties. As you know, the tax collected from the public is used for the development of the country.

Since the financial year is approaching, we decided to share the process to pay the Income Tax with you. This procedure will help you in making the payment of the tax online in India without any help from a third-party.

Pay Income Tax Online

TDS – It should be noted that if you are salaried then the Income Tax for you will be deducted at the source. This is also true for the case if you are earning interest income from banks. The tax deduction is made at the source and the deductor issues you a Form 16 or Form 16A which can be used to claim the income tax return if required.

Advance Payment of Tax – In addition to the TDS, some of the individuals also pay Advance Income Tax. It is usually advisable to pay the income tax in advance however, it is not mandatory to make the advance tax payments. This is usually done by the people who have other sources of income as well. If you do not make advance tax payments then there are chances that you might have to pay tax during the calculation of tax at end of the year.

Self-Assessment – In most of the cases, it is observed that the individuals in India would self-assess the tax that they need to pay. They will compute the tax liability themselves by looking at the deductions and other aspects. Once they arrive at the taxable income, they can calculate the tax liability or the tax refund. If in case, a person has a tax liability then he can go ahead and make the payment of the taxes online.

It is also possible to make the tax payment via offline medium but we would suggest you to go for the online procedure as it makes the payment of the taxes really easy. You can pay the tax and generate the receipt in a couple of clicks. If you also wish to make the payment of the tax online then you can follow the process to make the tax payment online which is listed below.

Steps to Make Tax Payment Online in India

The first thing that you need to understand before you move ahead with the procedure is that you can make the online payment of tax only if you have net banking. You won’t be able to pay the taxes with help of e-wallet or credit card. Now, you can look at the steps below.

=> To make the payment of the tax, you can visit the TIN NSDL portal. The link to the portal is and you can then register your account if you are not already registered.

=> Now, login to your account using your PAN Card, Password and Date of birth. Once you have logged in, click on Services from the top menu bar and then select e-payments from the drop-down

=> In this step, you need to select tax e-pay taxes and pay taxes online from a list of options displayed. Now, you need to select Challan 280 from the TIN Website to move to the next step.

=> Now, select the assessment year and also select Section 100 Advance Tax or Section 400 Tax on Regular Assessment. The difference between the two is that Section 100 should be selected when you are paying advance tax whereas, section 400 should be selected when you receive a demand for income tax. In addition to this, you can also select Section 300 if you are making the payment of the tax after the self-assessment.

=> In this section, you need to enter the personal details along with the bank details. Once you enter the bank details, you will be redirected to the bank’s website. Here, you can now login to your net banking account and make the payment.

=> Once the payment is made, a receipt will be generated and you can obtain the printout of this receipt.

With this, the payment of the income tax is competed. As mentioned earlier, you can also make the offline payment by visiting the bank and obtaining the challan. The payment can then be made with help of a cheque or cash.

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