It is very easy to pay Advance Tax Online. You just required Net Banking Facility to make an advance tax payment. Advance tax payment is required if your tax liability, after deducting prepaid taxes (TDS) is above Rs.10000. Short / Non-payment or deferment of payment of Advance Tax will result in the levy of interest.
It is mandatory to make e-payment of advance tax for all corporates and for the assesses whose accounts are required to be audited u/s 44 AB of the Income-tax Act. e-payment is convenient for taxpayers as it ensures correct credit.
Advance tax is payable in four different installments. Timeline is given below.
- 15% of total tax by June 15
- 45% of total tax by September 15
- 75% of total tax by December 15 and
- 100% of total tax by March 15 of the respective financial year.
The step by step process of paying advance tax online is given below.
Who needs to Pay Advance Tax?
Any assessee, including salaried employee, whose tax liability for the financial year as reduced by the tax deducted/collected at source is Rs.10000 or above. Resident Senior Citizen not having any income from the business/profession is not liable to pay.
If you are falling the category where you are liable to pay advance tax, follow the steps given below for e-payment of advance tax.
How to Pay Advance Tax Online? – Step by Step Process
To make payment of advance tax online you need to login to https://tin-nsdl.com. Go to Services > e-payment – Pay Taxes Online Option.
Select the challan ITNS 280. You can also select ITNS 281, ITNS 282 & ITNS 283 as per applicability. Challan ITNS 280 is used for Payment of Advance tax, Self-Assessment tax, Tax on Regular Assessment.
You will be redirected to new page where you need make selection about following.
Select Tax Applicable (0021) Income-Tax (Other Than Companies).
(a) Select (100) Self Assessment Tax as type of payment.
(b) Select the mode of payment & bank. You can select Net banking and Debit card payment option.
(c) Enter your Pan number.
(d) Select Assessment Year.
(e) Fill your contact details.
(f) Enter captcha code and click on proceed.
Verify the detail and give consent by selecting “I Agree” radio button. Click on Submit You need to Verify the detail and click on the “Submit to the Bank”.
Login to your personal net banking account and make the payment. Make sure to enter correct tax amount before making a payment.
On successful payment, you will receive Challan. This challan contains BSR code, Challan number, Challan Date and Challan amount. You need to mention this detail while filing an income tax return. Please keep challan copy safe for future reference.
You can verify payment status using “Challan Status Inquiry” tab at NSDL-TIN website using CIN within a week of making payment.
If you encountered any error on e-tax website kindly contact TIN call centre at 020 – 27218080 or write to us at email@example.com
If you don’t have net banking facility or if you want to pay tax offline you can download challan copy of ITNS 280 from here.