HOW TO PAY TAXES ELECTRONICALLY? ITS 24X7
In today’s world you can almost buy anything on net by just a single click. So why not taxes? Yes, you can also pay taxes from anywhere in the world. In India almost all banks are providing online tax payment facility. The intention of this article is to create awareness about net banking facilities provided by various financial institutions. Despite of net banking facility and many other add-on services most of us are still using age old practices. Most of the banks will not accept your tax payment in cash. Banks will accept tax payments if they are paid through instrument or electronically. Cheque/ Online payment has been made mandatory by some of the laws like Income Tax Act, 1961 & Service Tax Act etc. You can also read my articles on my site http://www.mytaxform.info. Further we would discuss how to pay taxes online or electronically? For making online tax payment there is no need to download any software or purchase income tax challan. Any person having a net banking facility can pay taxes electronically. The detailed information can be obtained from the bankers as the procedure varies from bank to bank. The list of banks providing e tax payment facility is available on NSDL-TIN website.
How secure is the transaction?
There is no need to worry. All the transactions made through banks or NSDL-TIN or Income Tax site are encrypted and have Secure Socket Layer (SSL) authentication. Most of the banks in India have Verisign Digital Certification. This assures that this site is secured for financial transactions. Additionally, the security level will differ from bank to bank. If you don’t see the signs as mentioned above, you have to take extra measures for protection. Look for the closed padlock and “s” in https in the URL.
How to pay taxes online?
There are 2 ways by which one can pay taxes. (1) From NSDL-TIN website. (2) From your Bank site. 1) NSDL-TIN website/ Income Tax website: For paying from this site you can log on to http://www.onlineservices.tin.nsdl.com/etaxnews . Alternatively you can also pay through http://www.incometaxindia.gov.in. On Income Tax site there is ‘Pay your Tax Online” button on left hand menu bar. By clicking on this you will be redirected to NSDL-TIN website. The following steps will lead you in paying e-taxes.
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(payment of Income Tax & Corporation Tax) |
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(Tax Deducted at Source / Tax Collected at Source (TDS/TCS) from Corporates or non-corporates) |
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(payment of Security Transaction Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax /Other Direct taxes & Gift tax) |
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(payment of Banking Cash Transaction Tax and Fringe Benefits Tax) |
• Select appropriate challan Form.
• After selecting appropriate challan, fill the details such as PAN, Name & address and then click on ‘Proceed’ button.
• A confirm data page will appear along with message in red letter. “For PAN ‘XXXXX 0000X’ given by you above, the name as per Income Tax Department database is ‘
XXXXXXXXX’.
Tax credit will be effected
to the said PAN nam
e. If the name is correct, then click on “Submit to the bank”
• Login with the user id and password and enter the tax amount along with any intrest or penalty.
• An e-receipt will be generated, save or print it for your record.
This is the complete e-payment process.
2). If you have to pay taxes through your bank directly then following steps should be taken:
• Login with user id and password.
• Click on E-Tax menu and select on appropriate type: Direct Tax, Indirect Tax or State Tax.
• Fill the appropriate challan along with tax am
ount.
• Click on Confirm button.
• An e-receipt will be generated containing CIN (Challan Identification Number).
Stop taking pains by wasting your time in standing long queue in banks and of carrying liquid cash, just clicking will pay your taxes. Pay your Taxes & have sound sleep
Q1 FBT TO BE TREATED AS ADVANCE TAX
The Central Board of Direct Taxes (CBDT) has put an end to the dilemma which all the tax payers were having about advance payment of Fringe Benefit Tax. Many companies and other tax payers had paid their 1st installment of FBT. In July 2009 Finance Budget, the decision to abolish Fringe Benefit Tax was passed with retrospective effect from 01 April 2009. Now with the Board's circular on Friday dt. 29/01/2010 the tax payer are having a sigh of relief.
The circular No. 2/2010, dated January 29,2010 states that :
During the current Financial Year 2009-10 some assessees have paid "advance tax in respect of fringe benefits" for Assessment Year 2010-11. In such cases the Board has decided that any installment of "advance tax paid in respect of fringe benefits" for A.Y. 2010-11 shall be treated as Advance Tax paid by assessee concerned for A.Y. 2010-11. The assessee can adjust such sum against its advance tax obligation in respect of income for A.Y. 2010-11 or in case of loss etc claim such payment as refund as advance tax paid in A.Y. 2010-11.
NEW TDS RATES APPLICABLE FROM 01.10.2009
In India Tax 
Deducted at Source (TDS) is one of the modes of collecting Income Tax from an assessee. TDS is enforced through Income Tax Act 1965. The concept of TDS is based on the theme of ‘PAY AS YOU EARN’.
Objective
• To enable salaried people to pay tax as they earn. This avoids the burden of lump sum payment and pay tax in easy installments.
• Collection of tax at the time of payment of income to various assesses such as contractors, professionals, etc.
• Funds are required by the Government through out the year. Hence TDS and Advance Tax help in regular cash inflows to government.
• To widen Tax network in the country and to stop tax evasion.
The provisions of Sec. 192 to Sec. 195 & Sec. 196A to Sec. 196D of Income Tax Act applies to person making payments of the amounts specified therein to deduct tax. TDS is applicable to income derived from:-
1. Salary. (Sec. 192)
2. Interest on securities. (Sec. 193)
3. Dividend. (Sec. 194)
4. Interest from Banking Company and other than Banking Company. (Sec. 194A)
5. Winning from lottery or crossword puzzle. (Sec 194B)
6. Winning Horse races. (Sec. 194BB)
7. Payment made to Contractors & Sub- contractors. (Sec. 194C)
8. Commission received from Insurance Company. (Sec. 194D)
9. Payment made to non resident sportsmen or sports associations. (Sec. 194E)
10. Payment on account of repurchase of units of Mutual Funds or UTI and NSS. (Sec. 194F) & (Sec. 194EE). At present they are exempt from Income Tax.
11. Commission received on sale of lottery tickets. (Sec. 194G)
12. Commission or brokerage for any services (not being professional services) in course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities.
13. Rent (Sec. 194I)
14. Fees received for Professional or Technical services. (Sec. 194J)
The new TDS rates as applicable from 01.10.2009 are published below.
INCOME TAX RATES : F.Y. 2009-10
The Income Tax Rates as per Finance Act 2009 for the FY. 2009-10 are as follows
Rates for Resident Senior Citizens (FY 2009-10):
2,40,001 to 3,00,000 10%
3,00,001 to 5,00,00 20%
Above 5,00,000 30%
Up to Rs 1,90,000 NIL
1,90,001 to 3,00,000 10%
3,00,001 to 5,00,00 20%
Above 5,00,000 30%
Rates for Other Individuals (FY 2009-10):
Up to Rs 1,60,000 NIL
1,60,001 to 3,00,000 10%
3,00,001 to 5,00,00 20%
Above 5,00,000 30%
Education cess @3%