Payment of Tax Through IDBI

The 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.

Steps for Payment of Tax through IDBI

  1. Visit TIN-NSDL

    Visit the TIN-NSDL portal and hence, click on Services > e-Payment: Pay Taxes Online

  2. Select Challan as per Tax Liability

    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.  

  3. Enter the required details

    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.

  4. Verify the details

    Your challan has been created. Verify the details inserted. Check the Tick box click on Submit to bank.

  5. IDBI Portal

    You will be redirected to the IDBI portal. Select the type of user and click on the mentioned link.

  6. Log in to the IDBI Account and verify Challan details

    Verify your Challan details and Payable amount. Click on Continue

Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
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Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
Explore

FAQs

What is e-Payment of taxes?

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.

How can I pay my tax online?

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.

What if my bank doesn’t provide the e-Payment facility?

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.

Payment of Tax through Axis Bank

The 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. The payment has to be done on the basis of that challan through TIN-NSDL. This not only helps in easing the Tax Collection process but also makes it quick and hassle-free. Hence, in this article, we will be explaining the process of Payment of Tax through Axis.

Taxes in India are of two types:

Corporate Tax- It refers to a direct tax imposed on corporate entities. The tax is payable 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, all income earned by Residents and income received/earned by Non-Residents in India are subjected to Income Tax. Income Tax is paid by individuals and other entities only.

Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
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Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
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Steps for Payment of Tax through Axis

  1. Visit the TIN-NSDL portal

    Visit the TIN-NSDL portal and hence, click on Services > e-Payment: Pay Taxes Online option from the dashboard.

  2. Select the necessary Challan

    Select the necessary challan as per your tax liability. Thus, click on Proceed.
    TDS/TCS Section– Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) section refers to as:

    1. Any tax collected while making any specified payments such as rent, commission, salary, interest, etc.
    2. 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. Moreover, 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.  

  3. Enter the required details

    Fill in the following details:

    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 the drop-down (Axis)
    5. PAN Number
    6. Assessment year
    7. Address
    8. e-Mail ID
    9. Phone number
    Enter the captcha code and click on Proceed.

  4. Verify the details

    Your challan has been created. Therefore, verify the details inserted and check the Tick box click on Submit to the bank.

  5. Login to Axis Bank Portal

    You will be redirected to the Axis Bank portal. Login to your Axis bank account. Finally, verify all the challan details and payable amount. Click on Submit. The amount from your bank account will get deducted and the Tax Payment process is complete.

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FAQs

What is e-Payment of taxes?

The facility that provides a platform for taxpayers to make income tax payments online. The transactions can happen using Net-banking/Debit card mode of some selected Banks.

How can I pay my tax online?

e-Payment of your taxes can be done only through TIN-NSDL Portal only if:
1. You have a bank account with the Net-banking/Debit card of the selected Bank.
2. Your bank provides the e-payment facility.
After the conditions are fulfilled you can follow the above-mentioned steps to pay your Taxes online.

What if my bank doesn’t provide the e-Payment facility?

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.

Payment of Tax Through HDFC

The 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. The payment has to be done on the basis of that 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 HDFC.

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, all income earned by Residents and income received/earned by Non-Residents in India is subjected to Income Tax. Income Tax is paid by individuals and other entities only.

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Steps for Payment of Tax through HDFC

  1. Visit the TIN-NSDL portal

    Visit the TIN-NSDL portal and click on Services > e-Payment: Pay Taxes Online

  2. Select Challan as per tax liability

    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.  

  3. Enter the required details

    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 (HDFC)
    5. PAN Number
    6. Assessment year
    7. Address
    8. Email id
    9. Phone number
    Enter the captcha code and click on Proceed.

  4. Verify the details

    Your challan has been created. Verify the details inserted. Check the Tick box click on Submit to bank.

  5. HDFC portal

    You will be redirected to the HDFC portal. Select the type of user and click on the mentioned link.

  6. Log in to the HDFC Account and verify Challan details

    Verify your Challan details and Payable amount. Click on Continue

.

Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
Explore
Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
Explore

FAQs

What is e-Payment of taxes?

The facility that provides a platform for taxpayers to make income tax payments online. The transactions can happen using Net-banking/Debit card mode of some selected Banks.

How can I pay my tax online?

e-Payment of your taxes can be done only through TIN-NSDL Portal only if:

You have a bank account with the Net-banking/Debit card of the selected Bank.
Your bank provides the e-payment facility.
After the conditions are fulfilled you can follow the above-mentioned steps to pay your Taxes online.

What if my bank doesn’t provide the e-Payment facility?

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.

Payment of Tax Through ICICI

The government of India has built an infrastructure to collect taxes online via net banking/ Debit cards from selected banks. This article explains the payment of the tax process through ICICI net banking. Taxpayers after filing their ITR on the Income Tax e-Filing platform will get a challan. The payment has to be done on the basis of that challan through TIN-NSDL. This not only helps in easing the Tax Collection process but also makes it quick and hassle-free. Taxes in India are of two types:

Corporate Tax- It refers to as a direct tax imposed on corporate entities. The taxpayer pays the tax 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, all income earned by Residents and income received/earned by Non-Residents in India is subjected to Income Tax. Income Tax is paid by individuals and other entities only.

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Steps for Payment of Tax through ICICI

  1. Visit the TIN-NSDL portal

    Visit the TIN-NSDL portal and Click on Services > e-Payment: Pay Taxes Online

  2. Select the Challan

    Hence, select the necessary challan as per your tax liability. Click on Proceed.

    Therefore, 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.  

  3. Enter the required details

    Furthermore, fill in the following details:
    1. Type of Tax Applicable
    2. Type of Payment
    3. Mode of Payment (Net Banking or Debit Card)
    4. Select the Bank from the drop-down given (ICICI)
    5. PAN Number
    6. Assessment year
    7. Address
    8. Email id
    9. Phone number
    Enter the captcha code and click on Proceed.

  4. Verify the details

    Thus, your challan has been created. Verify the details inserted. Check the Tick box click on Submit to the bank.

  5. Select mode of payment on ICICI Portal

    You will be redirected to ICICI Bank portal. Select the mode of payment.

  6. Enter the details

    Fill in your account number and total amount of payment. Click on Continue.

  7. Verify all the details

    The amount from your bank account will get deducted and Tax Payment process is complete.

Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
Explore
Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
Explore

FAQs

What is e-Payment of taxes?

The facility that provides a platform for taxpayers to make income tax payments online. The transactions can happen using Net-banking/Debit card mode of some selected Banks.

How can I pay my tax online?

e-Payment of your taxes can be done only through TIN-NSDL Portal only if:

1. You have a bank account with the Net-banking/Debit card of the selected Bank.
2. Your bank provides the e-payment facility.
After the conditions are fulfilled you can follow the above-mentioned steps to pay your Taxes online.

What if my bank doesn’t provide the e-Payment facility?

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 online facility. However, make sure that on challan the mentioned PAN number belongs to you.

Payment of Tax through SBI

The government of India has built an infrastructure to collect taxes online via net banking/ Debit cards from selected banks. This article explains the process of tax payment through SBI. Taxpayers after filing their ITR on the Income Tax e-Filing platform will get a challan. The payment has to be done on the basis of that challan through TIN-NSDL. This not only helps in easing the Tax Collection process but also makes it quick and hassle-free.

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, all income earned by Residents and income received/earned by Non-Residents in India is subjected to Income Tax. Income Tax is paid by individuals and other entities only.

Steps for Payment of Tax through SBI

  1. Visit the TIN-NSDL portal

    Visit the TIN-NSDL portal and click on Services > e-Payment: Pay Taxes Online

  2. Choose the appropriate Challan

    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 few simple steps.  

  3. Enter the required details

    Fill in the following details:

    1. Type of Tax Applicable
    2. Type of Payment
    3. Mode of Payment (Net Banking or Debit Card)
    4. Select the name of the Bank from the drop-down (SBI)
    5. PAN Number
    6. Assessment year
    7. Address
    8. Email id
    9. Phone number

  4. Verify the details

    Your challan has been created. Verify the details inserted. Check the Tick box click on Submit to the bank.

  5. SBI Portal Redirection

    You will be redirected to the SBI portal. Click on Internet banking and submit.

  6. Log in to SBI account

    Therefore, log in to your SBI account by entering the valid credentials

  7. Enter required details

    Insert all the required details and payable tax amount.

  8. Verify the details

    Verify all the details in the challan

  9. Amount debited

    The amount will be debited from your account and your taxes are now paid.

FAQs

What is e-Payment of taxes?

The facility provides a platform for taxpayers to make income tax payments online. The transactions can happen using Net-banking/Debit card mode of some selected Banks.

How can I pay my tax online?

e-Payment of your taxes can be done only through TIN-NSDL Portal only if:

1. You have a bank account with the Net-banking/Debit card of the selected Bank.
2. Your bank provides the e-payment facility.
After the conditions are fulfilled you can follow the above-mentioned steps to pay your Taxes online.

What if my bank doesn’t provide the e-Payment facility?

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.

Advance Tax Payment Procedure Online on TIN-NSDL

Advance tax is the income tax payable if your tax liability exceeds INR 10,000 in a financial year and it should be paid in the year in which the income is earned. It is also called the ‘pay-as-you-earn’ scheme. It is required to be paid at quarterly intervals. The advance tax due dates for payment is on the 15th of each quarter-end.

Advance Tax Filing (Quarterly)
CA Assisted Advance Tax calculation and payment for Individuals and businesses with tax payable more than INR 10,000 after TDS deducted
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Advance Tax Filing (Quarterly)
CA Assisted Advance Tax calculation and payment for Individuals and businesses with tax payable more than INR 10,000 after TDS deducted
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There are two methods for payment of Advance Tax:

  • Online via TIN NSDL.
  • Offline via Bank Branch.

Steps for Online Payment of Advance Tax

  1. Aceess the TIN NSDSL e-payment Portal.

    Visit the TIN NSDL e-payment portal and Select Challan 280.

  2. Select the tax applicable and Payment Type.

    Select the Tax Applicable as (0021) Income Tax (Other than Companies). Later select Type of payment as (100) Advance Tax.

  3. Select Mode of Payment and name of Bank.

    Next, select the mode of payment from the different options and the name of your Bank.

  4. Enter the Details asked.

    Enter PAN and Other Details including your email Id and contact number.

  5. Select the Assessment Year.

    After selecting the Assessment Year, enter captcha and click on Proceed.

  6. Click on “Submit to the bank”.

    Verify the details that were entered and Click Submit.

  7. Now you can login to the net banking account of your bank to make the payment.

    Once you make the payment you will get challan counterfoil with Bank details. Save it for future reference.

Steps for payment of Advance Tax Offline

  1. Visit the bank branch and ask for the applicable tax payment challan form-Challan 280 (in this case).
  2. Fill in the details as required in the form. The details asked in the form are the same as required in the online form.
  3. Go to the relevant bank’s counter and submit the filled-in Challan 280 form along with the money. The tax payment can be made either in cash or cheque.
  4. Once you give the money and challan and the bank official will give you a receipt by tearing off a portion of the challan, filling in details of payment, and stamping it.
Tax Hacks 102: Advance Tax
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Tax Hacks 102: Advance Tax
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Once you have completed your advance tax payment by either the online or offline method, you should keep the receipts safely as proof of payment. It can approximately take up to 10 days to reflect in your Form 26AS. Your income tax payment should show in your Form 26AS Component ‘Part C – Details of Tax Paid’.

FAQs

I forgot to save my Challan for tax payment, what should I do?

You can know details of Advance tax paid from your Form 26AS. Hence download Form 26AS from the income tax e-filing portal and show the same in your ITR.

What should I do if my bank does not have an online payment facility or is not an authorised bank for E-Tax ?

In case your bank does not have an online payment facility or is not an authorized bank then you can make electronic payment of tax from the account of any other person who has an account with the authorized bank having online facility.

What if my account gets debited twice for the Advance tax payment?

You should contact your Bank and ask for correction for double payment made for Advance tax.

Income Tax Payment for TDS, Advance Tax, Self Assessment Tax and Penalties

The procedure of payment of income tax can be completed on the TIN-NSDL portal. It’s one of the major sources of revenue for the government. And it is how they can invest in developing infrastructure and maintain it. In India, the central and state-level government has a right to collect taxes.

How much tax one pays will depend upon how much they earn and what slab do they fall in. The basic exemption limit for Individuals and HUFs below the age of 60 years is INR 2.5 Lakhs in AY 2019-20.

The different types of income tax / income tax payments In India are given below:

Income Tax Payment in the form of TDS

Tax Deducted at Source is a way to tax income when it is generated. so as to prevent tax evasion. TDS is applicable on payments like salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. Deduction of TDS depends on the rate (which varies by the nature of payment) prescribed by the Income Tax Act of India.

The Entity who is responsible to deduct TDS shall apply for TAN (Tax collection Account Number) and is liable to issue a TDS certificate. Deductor is also responsible for the TDS payment.

Income Tax Payment in the form of Advance Tax

Advance Tax is a tax liability where a taxpayer pays its dues in installment in the same financial year. Anyone whose tax liability exceeds Rs 10000 is required to pay Advance tax. As of 2016-17 taxpayers under the presumptive taxation scheme will have to pay their due before 15th March. Advance Tax payments and calculation will depend on the nature of the taxpayer’s income and professional. For salaried individuals whose only income source is salary, they do not have to pay advance tax. Freelance and Professionals have to estimate their annual income before calculating their tax payments. Taxpayers can pay advance tax in one of two ways: Either They can pay it through advance tax challan or they can pay it using Net Banking Facility.

280 challan

Income Tax Payment in the form of Self Assessment Tax

Self Assessment Tax is tax liability computed by the taxpayer on its own and paid before filing IT Return. A taxpayer does not have to pay it if their actual dues are less than Advance Tax and TDS combine. Payment is done in one of two ways: Either they can pay self-assessment tax challan or they can do it through Net Banking facility.

Surcharge: A Tax on Tax

A surcharge is an additional tax levied by a government on assessees whose income exceeds Rs 50 lakhs. The calculation of surcharge is on income tax and not the actual income. The rate applicable for surcharge depends on the policy for that particular assessment year.

Cess: A fundraising Tax

The government collects cess for a special cause like education, health, etc. And unlike other taxes mentioned above, it is collected for a particular period and might be altered or completely removed.

Indian Government collects different types of Cess Like Education Cess, Swachh Bharat Cess, Krishi Kalyan Cess, Infrastructure Cess, etc. The rate of the deduction depends on the financial policy for a particular assessment year.

Tax Penalties

With taxes comes penalties. The government collects interest on tax payment as a form of penalty from a taxpayer.  Each of the taxes discussed above has a particular due date and if assesses failed to pay till the prescribed due date there is a penalty.

Penalties on TDS

Late Filing Fee – Section 234E: If TDS is not filed after the due date then it attracts a penalty of INR 200 every day from the due date until it is filed by the taxpayer.

Interest – Section 201A: Failing to deduct TDS till the due date attracts interest.

Penalty – Section 271H: penalty of a minimum of Rs. 10,000 under this section.

Prosecution – Section 276B: imprisonment for a minimum of 3 months under this section.

Penalties on Advance Tax

Non Payment of Advance Tax – Section 234B: Interest at 1% in case the taxpayer fails to pay 90% of their tax liability in same the financial year.

Delay in Payment of Advance Tax – Section 234C: if there is a delay in tax payment than interest @ 1% is applicable.

Penalties on Self Assessment Tax

Defaulting – Section 221(1): if a taxpayer fails to pay the tax within due date then the penalty amount decided by assessing officer needs to be paid by the taxpayer.

Paying Taxes in India

A taxpayer can either choose to pay taxes online or offline

Paying Tax Online

In order to pay tax online one has to go to TIN NSDL e-payment and select INTS 280 and enter the necessary details  

Paying Tax Offline

Visit the nearest bank branch and get the challan form i.e. form 280. Fill in the necessary details and submit the money and form to a bank official, for which one will get a receipt.

one can inquire about the status of income tax payment online by going to TIN NSDL e-payment and download challan status inquiry form.

FAQs

What is a surcharge?

A surcharge is an additional tax levied by a government on assessees whose income exceeds Rs 50 lakhs. The calculation of surcharge is on income tax and not the actual income. The rate applicable for surcharge depends on the policy for that particular assessment year.

What are the penalties under Advance Tax?

– Non Payment of Advance Tax – Section 234B: Interest at 1% in case the taxpayer fails to pay 90% of their tax liability in same the financial year
– Delay in Payment of Advance Tax – Section 234C: if there is a delay in tax payment than interest at 1% is applicable

What are the different types of penalties under TDS?

– Late Filing Fee – Section 234E: If TDS is not filed after the due date then it attracts a penalty of INR 200 every day from the due date until it is filed by the taxpayer
– Interest – Section 201A: Failing to deduct TDS till the due date attracts interest
– Penalty – Section 271H: penalty of a minimum of Rs. 10,000 under this section
– Prosecution – Section 276B: imprisonment for a minimum of 3 months under this section

Section 234F: Penalty for Late Filing of ITR

What is Section 234F?

In Budget 2017, the government inserted a new section under the income tax act to penalize late filers of a tax return. From FY 2017-18, in case of delay in filing of a tax return by an individual whose income exceeds basic exemption limit penalty is levied u/s 234F.

Who is Covered u/s 234F?

Individuals, HUFs, Company, Firm, AOP, etc. will be covered under the scope of section 234F of income tax act. All persons will be liable to pay the late filing fees in case the miss the deadline to file their returns.

The due date to file the ITR for AY 2021-22 has been extended from 31st of July to 30th of September 2021
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The due date to file the ITR for AY 2021-22 has been extended from 31st of July to 30th of September 2021

Penalty u/s 234F for Late Filing of ITR

Let’s take an example to understand it better:

Ajay is a salaried individual and he forgot to file his return for FY 2017-18. His total income for a year is INR 7,20,000. TDS on his salary income has been deducted by his employer. And he decided to file his return on 12th March 2019.

In this case, even though TDS has been deducted from his income. Ajay will be penalized with late filing fees of INR 10,000. Since his income is more than INR 5,00,000.

How to Pay Penalty u/s 234F?

Taxpayers shall use the respective challan for self assessment tax i,e, Challan 280 to pay the penalty for late filing fees. Select type of payment as “Self Assessment (300)”. You will receive a BSR code on the successful payment of the tax. Mention the BSR code and the challan number whilst filing your return.

There might be a probability where the Income Tax Department deducts excess TDS. We could use the same excess TDS deducted to adjust it against the late filing fees of 234F. Taxpayers would have received this excess TDS by way of refund.

Rules to Carry Forward Losses

It is imperative that taxpayers who trade and have incurred losses file their returns on time. In case they don’t file their returns on time, they won’t be allowed to carry forward their losses in to the next years to set off against income in future years.

FAQs

Can we file the Income Tax Return (ITR) without paying the tax?

The Income Tax Returns (ITR) can be filed only if we have paid the tax due to the government. If you submit the ITR without paying then your Income Tax Return can be declared Defective.

What is Section 234F?

As per Section 234F of Income Tax Act, if a person is required to file Income Tax Return (ITR) as per the provisions of Income Tax Law [section 139(1)] but does not file it within the prescribed time limit then late fees have to be deposited by him while filing his ITR form.

What is the penalty for the late filing of ITR u/s 234F?

– Taxpayers earning income between INR 2.5 Lakh to INR 5 Lakh will have to pay a fine of INR 1,000
– Taxpayers earning income above INR 5 Lakh will have to pay a fine of INR 5,000 if the ITR is filed before December 31st of the Assessment Year
– Taxpayers earning income above INR 5 Lakh will have to pay a fine of INR 10,000 if the ITR is filed after December 31st of the Assessment Year

Save yourself from paying excess TDS

“Is there a way to spend money on our betterment and save TDS at the same time?” The answer is YES. There is a way to do so through planning. As the law requires you to pay TDS, it also gives you opportunities to save it as well. If your total income is not taxable, you need to plan wisely so as to avoid paying redundant TDS. All it takes is investing in the right areas such as buying a house, planning for retirement, getting family insurance, etc.

For planning, you need to manage the nature and source of income and the investments and evaluate the expected total income for the financial year in order to save TDS. If you are expecting your total income to remain below the taxable limit then, in that case, you can avoid paying redundant TDS on income.

For eg. Rohit’s total income for the financial year, 2015-16 is Rs. 3,45,000 (Including interest income of Rs. 12,000 from tax saving FD). His total deductions under section 80C are Rs. 1,02,000 so his taxable income for FY 2015-16 will be Rs. 2,43,000 which is below basic exemption limit. The Banks will deduct TDS on interest incomes if the amount of interest exceeds Rs. 10,000. Here, although Rohit’s total taxable income is below the basic exemption limit, the banks will deduct TDS since the interest income is greater than Rs. 10,000. In such a situation, Rohit can use form 15G to save TDS payment by avoiding paying redundant TDS from the interest income.

How Does TDS Payment work?

TDS is ‘pay as you earn’ method of taxation. Basically, it’s the payer who deducts the TDS directly from your income and remits to the government on behalf of the payee. TDS is applicable to several incomes such as salary, interest, rent, brokerage, commission, professional fees, and others. Hence, the Income Tax Department deducts TDS at a prescribed rate. The Income Tax Act provides a threshold limit of each source of income after which TDS is applicable. If you have a rental income than under section 194-I of the Act, up to Rs.1,80,000 in a year is exempt from TDS.

Sometimes when you have more than one source of income during the financial year, you need to take into consideration your total income from all the sources of income to assess the tax liability and then decide if you need to do something to stay away from TDS. You can consider all the deductions and exemptions available while calculating tax liability.

TDS Calculator
TDS (Tax Deducted at Source) is a part of Income Tax. TDS should be dedcuted by a person for specific payments made.
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TDS Calculator
TDS (Tax Deducted at Source) is a part of Income Tax. TDS should be dedcuted by a person for specific payments made.
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How to avoid TDS?

If the estimated total income of an individual for a financial year is less than the basic exemption limit than TDS can be avoided. In the case of a salaried individual, you can declare your other income and investments and expenditure that qualifies for tax deductions and exemptions to the employer. Depending on your declaration, the employer deducts TDS.

However, in the case of non-salary incomes, you need to fill out certain forms to avoid TDS.

  1. Form 15G/15H are self-declaration forms for interest income on securities or dividends or interest on other securities or income in respect of units under section 197A. For example: If you are receiving interest on fixed deposits, and you submit form 15G to the bank, the bank will not deduct TDS from your interest income. Please note that Form 15H is for senior citizens (Age 60 years or more)
    • The provisions to use these forms has now extended to include rental income as well from 1st June 2016.
    • It is a good practice to file form 15G/15H at the beginning of a financial year to avoid unnecessary deduction of TDS.
    • You may need to give forms separately for a different source of income. If you have fixed deposits in two banks, you need to give form 15G/15H to each bank.
    • Submit these forms every financial year. Because, even though you will get a final interest only on maturity, TDS will be cut on the accrued interest for each year.
  2. Form 13 needs to be filled out in case of commission income, brokerage income or lottery tickets, etc. This form has to be given to the income tax assessing officer (AO) to get a certificate to deduct tax at a lower rate or not at all as may be appropriate. The assessing officer may issue this certificate if he is convinced that the total income of the applicant justifies lower or no taxation.

Note: This certificate is valid only for the year for which it is given to the taxpayer.

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Things to keep in mind in TDS Payment

  • Before furnishing forms and certificates to avoid TDS, you need to assess total income carefully. Because there are penal provisions if the tax department finds that the assessee is deliberately avoiding TDS.
  • Once these forms are furnished there is no provision in the income tax act regarding the withdrawal of these forms.
  • If your income for the year is more than your evaluation, you should do self-assessment of tax liability on extra income and pay advance tax on it.
  • The forms are easily available at banks, post office branches and on the tax department website. Nowadays you can also submit for 15G / 15H electronically

FAQs

What is the TDS payment?

TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the Income Tax Department (ITD).

When should TDS be deducted?

The due dates for the payment of the deducted TDS are on or before the 7th of next month. Hence, if the deductor has deducted tax from payments in the month of November, then he has to pay the TDS on or before the 7th of December.

Who can file the TDS return and what are the details required?

TDS Return is a quarterly statement to be given to the Income Tax Department (ITD). It is compulsory for deductors to submit a TDS return on time. The details required to file TDS returns are as follows:
– TAN (Tax Deduction Account Number)
– PAN (Permanent Account Number)
– Transaction details (Party Name, Party PAN, Date of Payment, Section of Payment, Rate of Tax Deduction, Certificates (if any)
Payment Details (Challan Number, Challan Date, Challan BSR Code, Challan Amount)

Section 234C of Income Tax Act : Interest for Delay in Payment for Advance Tax

The due date for filing the ITR is always defined and if you miss the deadline to file your ITR, you might face the consequences like having to pay interest based on Section 234. The Penalty for Advance Tax delay in payment is levied under section 234C. Apart from that, there are two more types of interests under section 234

So, let’s discuss Section 234C in this article. Taxpayers can pay the advance tax in 4 installments during the Financial Year. However, if you still default, there are consequences in the form of an interest penalty u/s 234C. This interest u/s 234C is calculated for the delay/non-payment of advance tax during the year.

As mentioned above, the assessee has to calculate advance tax and should pay his Tax Liability for a particular Financial Year if the amount calculated is estimated to be INR 10,000 or more. As per the Income Tax Act, the assessee is required to pay advance tax in installments as mentioned in the advance tax due dates table below:

Due date of installment Advance Tax payable by Individual and Corporate Taxpayers
On or before 15th June 15% of the advance tax liability
On or before 15th September 45% of the advance tax liability
On or before 15th December 75% of the advance tax liability
On or before 15th March 100% of the advance tax liability


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So in case of short/no payment of advance tax, interest/penalty will be levied u/s 234C and it is calculated as follows:

Scenario Interest
If paid Less than 45% of advance tax up to 15th September 1% per month i.e. 3 months on the shortfall amount below 45%
Less than 75% up to 15th December 1% per month i.e. 3 months on the shortfall amount below 75%
Not 100% Up to 15th March 1% on the shortfall amount below 100% for 1 month

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For Example

Pratik is running a small shop. His tax liability is INR 45,000. He has paid advance tax as given below:

  • INR 21,000 on 15th September
  • INR 5,000 on 15th December
  • and, INR 15,000 on 15th March

Penalty for Delay in Advance Tax Under Section 234C of Income Tax Act

Installment Advance tax due
to be paid
Advance tax actually
paid till date 
Shortfall Interest
15th September
20,250
(45% of 45,000)
21,000 0 0
15th December 33,750
(75% of 45,000)
26,000
(21,000 + 5000)
7750 233
(7750 x 3 months x 1%)
15th March 41,500
(100% of 45000)
41,000
(21,000 + 5,000 + 15,000)
4000 40
(4000 x 1 month x 1%)
Total Int u/s 234c       273
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FAQs

What is the difference between 234A, 234B and 234C?

– Interest u/s 234Aof Income Tax Act is levied on taxpayers if they delay in filing their Income Tax Return (ITR).
– The Interests u/s 234B of Income Tax Act is levied upon those taxpayers who default in payment of Advance Tax.
– Interest u/s 234C of Income Tax Act is levied upon those taxpayers who default in paying installments of advance tax.

Do salaried people have to pay advance tax?

​No. Since TDS is deducted from salary income by the employer no need to pay advance tax. However, for all the incomes other than salary, if the total of such incomes exceed Rs. 2,50,000 then they will have to assess the tax liability on the same and pay Advance Tax.

How do I determine whether I am liable to pay advance tax or not?

​Before every due date for payment of Advance Tax, you will have to calculate your expected annual income and determine the tax liability on the same. If your total tax liability exceeds Rs. 10,000 then you are liable to pay advance tax as per the schedule has given above.

How to pay advance tax?

​There are two ways of tax payment:
– Deposit in the bank with advance tax challan or
– Online payment using Net banking facility.