Paying income tax is an essential duty for every taxpayer in India. Knowing how to pay income tax correctly ensures compliance with the law and helps avoid penalties. Whether you are a salaried employee, a business owner, or a freelancer, the process is now easier with online payment facilities offered by the Income Tax Department.
Income Tax Return – File here
Step 1: Calculate Your Tax Liability
Before you pay, you need to know how much tax you owe. Use the income tax slabs for the financial year and include income from all sources. Deduct eligible exemptions and deductions to calculate your net taxable income. This calculation will give you the total amount payable.
Step 2: Choose the Payment Method
You can pay income tax either online or offline.
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Online Payment: Visit the official Income Tax e-filing portal or the TIN-NSDL website, select ‘Challan 280,’ and enter your details. You can pay using net banking, debit card, or UPI.
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Offline Payment: Visit any authorized bank branch, fill out the physical Challan 280 form, and pay in cash, cheque, or demand draft.
Step 3: Fill in Challan 280 Details
While filling the challan, choose the correct payment type — self-assessment tax, advance tax, or regular assessment tax. Enter your PAN, assessment year, and address carefully to avoid errors.
Step 4: Keep the Receipt Safe
After making the payment, you will receive a counterfoil or an online receipt with a Challan Identification Number (CIN). Keep it safe for future reference and proof of payment.
Step 5: Verify Payment in Your Account
Log in to the income tax e-filing portal and check your Form 26AS or AIS to confirm that the payment reflects correctly.
Conclusion
Understanding how to pay income tax is crucial for fulfilling your legal obligations and maintaining a good compliance record. With both online and offline options available, the process is simple, fast, and secure.