Which Tax Regime to choose?
Calculate your Tax Liability and compare Old & New Tax Regime
Anshumi Shah
2020-06-06 09:37:38The government of India has built an infrastructure to collect taxes online via Net Banking / Debit cards from selected banks. Taxpayers after filing their ITR on the Income Tax e-Filing platform will get a challan. Process the payment on the basis of the challan through TIN-NSDL. This not only helps in easing the Tax Collection process but also makes it quick and hassle-free. This article explains the online process of Payment of tax through IDBI.
Taxes in India are of two types:
Corporate Tax- It refers to as a direct tax imposed on corporate entities. The tax has to be paid on the income or capital invested in a company. Corporate tax can also be referred to as Company tax.
Income Tax- As the name suggests, its a tax on income earned. As per the Indian Constitution, income earned by Residents and income received/earned by Non-Residents in India is subjected to Income Tax. Individuals and other entities pay income tax.
Visit the TIN-NSDL portal and hence, click on Services > e-Payment: Pay Taxes Online
Select the necessary challan as per your tax liability. Click on Proceed.
Select the necessary challan by reading the following:
TDS/TCS Section– Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) section refers to as:
Any tax collected while making any specified payments such as rent, commission, salary, interest, etc.
Any tax collected by the seller at the time of sale
If you have paid TDS or collected TCS then you need to look for challans under TDS/TCS Section
Non-TDS/TCS Section- Challans that are not regarding TDS or TCS are found under Non- TDS/TCS Section. Any type of Tax that doesn’t involve TDS or TCS has to be paid by challans mentioned under the Non- TDS/TCS Section.
Challan 280 of the Income Tax Department- Challan 280 is a much easy way to pay your advance tax, regular assessment tax, self-assessment tax, Surtax, etc. online in a few simple steps. 
1. Type of Tax Applicable
2. Type of Payment
3. Mode of Payment (Net Banking or Debit Card)
4. Select name of the Bank from a drop-down (IDBI)
5. PAN Number
6. Assessment year
7. Address
8. Email id
9. Phone number
Enter the captcha code and click on Proceed.
Your challan has been created. Verify the details inserted. Check the Tick box click on Submit to bank.
You will be redirected to the IDBI portal. Select the type of user and click on the mentioned link.
Verify your Challan details and Payable amount. Click on Continue
The facility provides a platform for taxpayers to make income tax payments online. The transactions can happen using the Net-banking/Debit card mode of some selected Banks.
e-Payment of your taxes can be done only through TIN-NSDL Portal only if:
a. You have a bank account with the Net-banking/Debit card of the selected Bank.
b. Your bank provides the e-payment facility.
After the conditions are fulfilled you can follow the above-mentioned steps to pay your Taxes online.
Well, in that case, you can do the e-Payment of your taxes from the account of any other person who has an account with the authorized bank having the online facility. However, make sure that on challan the mentioned PAN number belongs to you.
Hey @Shweta_Saini
Advance tax is a ‘Pay as you earn’ tax, so it is required to be paid during the financial year in four different instalments in case your Taxable Liability is more than INR 10,000 for the financial year which stands true for you.
The due dates for advance tax installments are:
If you are eligible to pay advanced tax but have not paid advance tax, the penalty will be applicable u/s 234B and 234C.
Let us know if you have any further questions!
Hi Team, I had assumed that I will be able to pay advanced tax before March because I thought I could go for presumptive tax filing. But now it looks like I cannot opt for a presumptive taxation scheme. So does it mean that I did not pay the advanced quarterly tax that I was supposed to pay?
If yes, what is the penalty in every case or are there some exceptions to avoid this interest penalty?
Thanks in advance!
Hey @riya_gupta
You will be charged an interest penalty under section 234C for the delay/non-payment of advance tax during the year @1% per month on the shortfall amount. Additionally, under Section 234B a penalty interest is imposed on the taxpayers in case the advance tax payment is less than 90% of assessed tax liability during the year.
You can avoid interest u/s 234B by paying at least 90% of your assessed tax liability by March 15, 2021.
Hope this helps!
Hey @TeamQuicko
I have LTCG of more than 7 lakhs from the equity for this year. Is there a way to reduce my tax liability? Also, do I have to pay the tax in advance? If I fail to do so, what will be the penalty/interest percentage I have to pay during my tax filing in 2020?
Hey @ViraajAhuja47, you can set off against non-speculative business loss like F&O for the current year. Long-term capital losses for the previous as well as the current year. Yes, you are required to pay advance tax in case your tax liability is more than INR 10,000 for the FY. The penalties for non-payment of advance tax are:
Non-payment of Advance Tax u/s 234B 3: Interest at 1% in case the taxpayer fails to pay 90% of the tax liability in the same FY
Delay in Payment of Advance Tax u/s 234C 1: if there is a delay in tax payment than interest @ 1% is applicable.
Hello @S_P
Tax paid on or before 31/03/2021 will be considered as advance tax for FY 2020-21. So a trader can determine the profits between 15th March to 31st March and pay the tax on 31st March, there will be no interest levied.
Hope this helps!
Hi @TEst_Netflix,
Tax audit is applicable when:
You can use this tool to determine if tax audit is applicable to you:
It is always a good practice to file your ITR and report all your financial transactions to avoid notice from the Income Tax Department. Especially after the SEBI and CBDT’s data partnership. If your total income is below the basic exemption limit, you won’t have any tax liability.
Do I have to pay Advance Tax if the TDS for the year is sufficient to cover tax liabliltiy?
Does Dividend on equity shares attract separate Advance Tax or is it just another source of income?
Hi @vivek25,
You are liable to pay advance tax if your total outstanding tax liability for the financial year after TDS is above INR 10,000.
To calculate your advance tax liability you need to add your estimated income for the financial year from all sources including - Salary, House Property, Capital Gains, Business & Profession and other sources.
Next, subtract all eligible deductions, expenses, and Tax Credit available to you.
Now, if your outstanding tax liability is above INR 10,000, you need to pay advance tax to avoid penalty u/s 234B and 234C.
Hope this answers your query
You can also use the advance tax calculator to know your advance tax liability under the old and new tax regime