GST Challan Payment : Process to pay GST online

The online GST payment system involves filing GST return, creating challan and finally payment of GST by the taxpayer. A taxpayer under GST can make payment of tax, interest, penalty, fees and other payments by creating a challan on the GST Portal i.e. gst.gov.in

Steps to make online payment of GST challan:

  1. Go to GST Portal

    Click on Services > Payments > Create Challan

  2. Enter GSTIN or other applicable ID, enter captcha code and click on Proceed

    Note: Other applicable ID
    i. UIN i.e. Unique Identification Number – in case of UN bodies, embassies, government offices or other notified persons
    ii. TRPID i.e. Tax Return Preparer Identification Number – in case of Tax Return Preparers
    iii. TMPID i.e. Temporary Identification Number – in case of an unregistered dealer having a temporary ID 

  3. The Challan view is displayed

    Enter the amount of tax, interest, penalty, fees and other payments under the respective heads i.e. CGST, IGST, SGST and Cess. Also, we can view the total amount at the bottom of the challan.

  4. Select the Payment Mode

    Select from E-Payment, Over the Counter or NEFT/RTGS

A. E-Payment

  • Select E-Payment and then click on Generate Challan
  • OTP Authentication – Enter the OTP sent on the registered mobile number and then click on Proceed
  • The challan is ready. Click on Download to save the challan
  • Select Net Banking, select the name of your bank and then click on Make Payment. It will redirect you to the payment page of the bank where you can complete the payment process.
  • On successful payment, it will redirect you to the GST portal. Further, the payment summary with the transaction status and payment receipt can be seen.

B. Over the Counter (OTC)

  • Select the name of your bank, select the type of instrument i.e. cash, cheque or demand draft and then click on Generate Challan
  • OTP Authentication – Enter the OTP sent on the registered mobile number and then click on Proceed
  • The challan is now ready. To save the challan, click on Download
  • Make the payment using cash, cheque or demand draft before the challan expires
  • Once the bank confirms, the payment status would be updated on the GST Portal

C. NEFT / RTGS

  • Select the name of bank then click on Generate Challan
  • OTP Authentication – Enter the OTP sent on the registered mobile number and click on Proceed
  • The challan is now ready. Click on Download to save the challan
  • Make the payment through cheque or account debit facility
  • Once the bank processes the payment, you will receive a UTR number on your registered mobile and email
  • Go to challan history, click on CPIN and enter the UTR to link it with the RTGS
  • Once the bank confirms, the payment status would be updated on the GST Portal. Also, the E-Cash Ledger is updated with the payment amount

FAQs

What is ARN number in GST?

Application Reference Number (ARN) is an acknowledgement issued by GSTN system portal to the taxpayers who have successfully submitted their application after completing the full process.

Can I make a GST payment through a physical challan?

No, physicals challans will not be accepted for the payment of GST. Payments can be made only through the challans generated in gst.gov.in

Can GST Challan be cancelled?

Yes, you can cancel a OTC Challan which is not paid from the Challan History. Navigate to Services > Payments > Challan History to cancel such OTC Challan.

Can excess GST paid by mistake be refunded?

Yes. Excess GST paid by mistake will be refunded. Log in to the GST website, go to services and submit your refund application.

Section 80EE: Deduction for First Time Home Buyer

What is Deduction under section 80EE?

A taxpayer can claim income tax deduction under section 80EE of the Income Tax Act on interest paid on a home loan taken by a first-time homeowner. Although this deduction was first introduced only for FY 2013-14, it has been reintroduced with effect from FY 2016-17. The total dedication that is available under section 80EE is INR 50,000 per annurm.

Deduction under section 80EE is not allowed for Financial Year 2020-21 if the taxpayer opts for the new tax regime
Tip
Deduction under section 80EE is not allowed for Financial Year 2020-21 if the taxpayer opts for the new tax regime

Who is Eligible for Deduction Under Section 80EE of Income Tax Act?

Only individuals who are first-time homeowners are eligible to claim deduction under section 80EE. HUF or company or partnership firm can not claim a deduction if they take a loan to acquire a residential house. One needs to note that 80EE deductions can only be claimed on the interest component of home loan and not the principal amount paid towards repayment.

What are the Conditions to Claim Deduction Under Section 80EE?

  • An individual is a first time home buyer
  • The value of residential houses should not exceed INR 50,00,000
  • A loan has to be sanctioned between 1st April 2016 to 31st March 2017
  • A loan must be sanctioned by Financial institutions or Housing Finance Company
  • Sanctioned loan amount should not exceed INR 35,00,000
  • A taxpayer should not own any other residential house on the date of a sanction of a loan
ITR for Salaried Individuals
CA Assisted Income Tax Return filing for individuals having salary, one house property & income from other sources.
[Rated 4.8 stars by customers like you]
ITR for Salaried Individuals
CA Assisted Income Tax Return filing for individuals having salary, one house property & income from other sources.
[Rated 4.8 stars by customers like you]

What is the Deduction Limit Under Section 80EE for a first-time Homeowner?

A deduction is allowed up to INR 50,000 for FY 2018-19 (AY 2019-20). There is no limit on a number of years for claiming this deduction if you meet the above conditions. The only limit is that you can not claim deduction u/s 80EE for more than INR 50,000 in a single financial year.

The limit of INR 50,000 is over and above the deduction of INR 2,00,000 allowed for home loan interest u/s 24. So if you satisfy conditions for both section 24 and section 80EE, you can claim a cumulative deduction of INR 2,50,000 on interest paid on the home loan.

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

Difference between Section 80EE and 80EEA

Sr. No. Parameter Under Section 80EE Under Section 80EEA
1. Eligibility All Taxpayers Only Individual Taxpayers
2. Deduction Amount INR 50,000 INR 1,50,000
3. Applicability of Section 24 Section 24 can be claimed to provide exemptions up to INR 2,50,000 Section 24 can be claimed to provide exemptions up to INR 3,50,000
4. Date of Loan Sanctioned Taxpayers get the deduction if their loans are sanctioned during the FY 16-17 Taxpayers get the deduction if their loans are sanctioned on and after FY 19-20
5. Stamp Duty Stamp duty value of the house should not be more than INR 50 Lakh Stamp duty value of the house should not exceed INR 45 Lakh
6. Loan Amount The amount of loan should not exceed INR 35 Lakh There is no such limit set
7. Condition The taxpayer has to be a first-time home-buyer The taxpayer has to be a first time home buyer and shouldn’t have taken any deductions under 80EE

ITR Form Applicable for Section 80EE

The taxpayer can claim deductions u/s 80EE while filing ITR if all the above-mentioned conditions are full-filled. Individuals/HUFs can claim 80EE in any of the ITR forms, i.e, ITR 1ITR 2ITR 3, and ITR 4 depending upon their income sources. The due date for filing ITR is 31st July of the next FY if the tax audit is not applicable.

Supporting Documents

The only document you would need to claim this deduction apart from the common documents such as Form 16, PAN, etc, is the document supporting Interest on Housing loan for first home

FAQs

Can I claim deduction u/s 80EE for the residential house given on rent?

Yes. As per income tax act, deduction u/s 80EE is allowed for a loan taken to purchase first residential house property. Whether you use it for yourself or let it out on rent is irrelevant. In both the cases, the deduction amount will remain the same as INR 50,000

What are the douments required to claim deduction u/s 80EE?

A home loan repayment certificate/ Interest certificate from a bank is essential to claim this deduction while filing ITR.

Can I claim deduction u/s 80EE and 80GG simultaneously?

Yes, you can claim both deductions under section 80EE and section 80GG simultaneously. This would be possible only when:
a. The assessee is living at rented premises and paying rent for the same.
b. He does not receive any House Rent Allowance (HRA).
c. He has taken a loan for the purchase of the first residential house property.
d. The assessee is not occupying a residential house. A residential house is treated as let out for the purpose of calculating income from house property.

Can I claim a deduction under section 80EE on a house property which is owned by my wife but the loan is taken by me?

No, under the above mentioned scenario you cannot claim a deduction. A deduction can be claimed only if the wife is a co-borrower in the loan or if your wife makes you the co-owner of the house.

What is the deduction amount availabe u/s 80EE for AY 20-21?

For AY 20-21, INR 50,000 is the total dedication available u/s 80EE provided that the loan is taken in FY 16-17.

Is it possbile to calim deduction u/s 80EE and section 24 in simultaniousely?

Yes, one can claim deductions under both sections at the same time. The 80EE deduction is available over and above the deductions available under section 24.

Can 80EE deductions be claimed for construction of a house property?

No, deductions u/s 80EE can only be claimed on a home loan taken for acquisition of residential house property and not for the construction of a house property.

Section 80E : Deduction for Interest on Education Loan

What is Deduction under section 80E?

Section 80E allows a deduction for interest paid on repayment of education loan taken for higher education. However, a taxpayer can not claim a deduction on principal repayment. You can claim this income tax deduction while filing your ITR.

Deduction under section 80E is not allowed for Financial Year 2020-21 if the taxpayer opts for the new tax regime
Tip
Deduction under section 80E is not allowed for Financial Year 2020-21 if the taxpayer opts for the new tax regime

Who is Eligible to Claim Deduction for Education Loan Under Section 80E?

Deduction under the section can be claimed by individuals only. This deduction can be claimed even if a loan is taken to pursue higher studies outside India. HUF or company or partnership firm can not claim deduction under this section. Following are the additional conditions to claim the deduction:

  • A loan must be taken from financial institutions or charitable institutes
  • The loan taken from relatives or friends is not eligible for deduction
  • The loan must be taken for the purpose of pursuing higher education for self or for a relative. Relative includes spouse, children and student for whom an individual is a legal guardian
  • The repayment must be done by the taxpayer

What is the Education Loan Deduction Limit Under Section 80E?

There is no monetary limit u/s 80E. An individual can claim the total interest amount paid as a deduction. One has to note that, a deduction is available only for 8 consecutive years.

For example, Arjun has taken an education loan for his higher education in FY 2016-17 and the interest payable per annum is INR 1,00,000. Arjun manages to repay the loan in 5 years so he is eligible to claim deduction u/s 80E on the interest repayment of INR 1,00,000 for those 5 years.

Have questions before filing your ITR?
Don't worry, our tax experts can help you with all your tax related queries!
[Rated 4.8 stars by customers like you]
Have questions before filing your ITR?
Don't worry, our tax experts can help you with all your tax related queries!
[Rated 4.8 stars by customers like you]

ITR Form Applicable for Section 80E

The taxpayer can claim this deduction while filing ITR if all the above-mentioned conditions are full-filled. Individuals/HUFs can claim 80E in any of the ITR forms, i.e, ITR 1ITR 2ITR 3 and ITR 4 depending upon their income sources. The due date for filing ITR is 31st July of the next FY if the tax audit is not applicable.

Supporting Documents

The only document that is required in this case apart from the common documents such as Form 16, PAN etc. is a certificate from your bank or financial institution or approved charitable institution from whom such an education loan has been taken.

FAQs

Can I claim deduction u/s 80E for an education loan taken from relative or friend?

No. In case you have borrowed money from a relative or a friend, you would not be able to claim deduction under this section.

Can I claim deduction u/s 80E if my father has paid the loan?

No, you can not claim deduction u/s 80E. However, your father can claim a deduction u/s 80E. Because relative includes children of an individual.

What does higher education mean under section 80E?

Higher education includes all the fields of study pursued after passing the senior secondary examination or its equivalent exam. It includes vocational as well as regular courses.

For my daughter’s further education in the United States, I took an employee educational loan from the company that I am employeed at. Can I claim a deduction under section 80E?

No, deduction under section 80E of Income Tax Act can only be claimed if the loan is taken from a financial or charitable institution.

My father took a loan for my higher education 2 years ago and claimed deduction u/s 80E, now I have finished studying and started earning. Can I now claim a deduction u/s 80E instead of my father?

Yes, one can claim deduction u/s 80E as long as one is repaying the EMI on the loan taken.