Section 80D for Medical Insurance

Income Tax is a type of direct tax levied by the Government of India on any income (other than that generated from agriculture and related activities) as per the Income Tax Act, 1961.

It is applicable to the taxable income earned by individuals, members of a Hindu Undivided Family, firms, companies, Limited Liability Partnerships, local authorities, as well as any artificial juridical person. Usually, those with an income of over Rs. 2.5Lakh/annum are liable to pay income tax under the ITA within 31st August of the preceding year.

On failing to pay the requisite taxes, the above-mentioned entities can be penalised and subjected to further legal actions. Therefore, it is crucial for individuals to pay their taxes and file their income tax returns on time to avoid any such disputes.

Online Income Tax Payments

Income tax payment was a cumbersome process involving complicated paperwork at banks. But with the introduction of income tax online payment facilities, the process of paying taxes has become streamlined and much more straightforward than it was before.

Following is an expansion on the e-Tax Payment facilities introduced by the Income Tax Department to make tax payments easier for individuals.

How to Make Online Tax Payment Income Tax?

To make an online tax payment, individuals need to visit www.tin-nsdl.com or TIN NSDL e payment. From there onwards, they can follow the steps below to make their web tax online payment –

• Step 1: On visiting the websites mentioned above, individuals will find options like – “Pay Taxes Online” or “epay tax”, providing them with a link for e-payment of taxes. They will have to follow this link.
  
  
• Step 2: In the respective e-payment pages, individuals will have to select the requisite income tax challan for online payment. The options include – ITNS 280, 281, 282, 283, 284 and Form 26QB (in case of Tax Deducted at Source for the sale of the property.)
  
  
• Step 3: In this step, individuals will need to provide details like their PAN or TAX (whichever is applicable) along with other mandated details like their personal details, bank details, accounting head, etc.

In this step, one has to select their tax payment category from the options provided below – 

• Advance Tax.
• Tax on Distributed Profit.
• Surtax.
• Tax on Distributed Income.
• Taxes on Regular Assessment.
• Self Assessment Tax.

The option – “self-assessment tax” is applicable to those who have taxes due while filing their income tax returns.

• Step 4: On submission of the details mentioned above, a confirmation will be displayed on the website. If individuals have entered their valid PAN/TAN, their name, as registered with the Income Tax Department will be displayed on the website page.
  
  
• Step 5: On verification and confirmation of the details entered by the individual, he/she will be directed to the net banking site of the respective financial institution for online tax payment of income tax.
  
  
• Step 6: Individuals will then have to log in to the net banking site by entering the provided username and password and submitting the necessary payment details. After the payment is complete, a challan counterfoil will be generated, containing information like bank name, payment details, Corporate Identification Number, etc.

Individuals will need to preserve this counterfoil as proof of payment of their income tax e payment online.

Tax Payment Declaration

On successful completion of income tax online payment, individuals will need to declare the same in their income tax returns. This can be done by visiting the “file income tax return” page on the official income tax page.

Advance Tax Payment

Advance taxes are applicable for those who have outstanding tax dues exceeding Rs. 10,000. In most cases, for salaried individuals, tax payments are taken care of by their respective employers along with TDS. However, those falling under a higher income group need to avail of the advance income tax online payment facility to make their tax payments in full.

Following are a few instances under which individuals have to make advance income tax payments –

• When their quantum of tax payment exceeds Rs. 10,000 as a result of returns from capital gains, interest earned and rental income.
• For freelancers and business owners.

Advance Tax Calculation and Payment

To calculate one’s payable advance tax amount, one will have to know their taxable income first. To do so, one has to add their earnings from -

• All sources like salary, capital gains (from Mutual Funds, shares, etc.), interest, etc.
• Freelancers will need to form an estimate of their annual income and deduct their applicable expenses like workplace rent, bills, travel expenses, etc. from it.

Next, individuals have to determine the deductions (under Sections 80C, 80CCD and 80CCC of the Income Tax Act) allowed on their income. 

After applying these deductions to the total earnings, individuals can gauge their taxable income. The payable advance tax is then calculated on the basis of the income tax slab rate applicable to the individual in question.

The following table illustrates Advance Tax Payment due dates –

If an individual fails to pay the required advance tax, he/she will be levied with a penal interest under Sections 234C and 234B.

Self-Assessment Tax

In addition to this, individuals might find that they have some tax payable due during the time of filing their income tax returns. This amount, known as “self-assessment tax” can be paid online at that time to ensure that the tax returns are filed successfully. 

Individuals should also make interest payments on the tax amount due, under Sections 234C and 234B when they pay online income tax payment of self-assessment tax. Thus, with these few details in mind, it is easier to file the returns successfully after making income tax online payment in full.

Who is Eligible to Pay Income Tax Online?

To be qualified for Paying Tax Online, you must meet the following eligibility criteria outlined in the Income Tax Act-

• You must be an Indian citizen with a minimum annual income of Rs.2.5 lakh.
• Annual income should be more than three lakhs if you are over 60 and 5 lakhs if you are over 80.
• Have a firm that follows Section 44AB principles of cooperative society, BOI, AOP, artificial juridical person, and local authority (ITR 5)
• If you have claimed tax relief under Sections 90 and 90A or deductions under Section 91.
• If you are an assessee who is required to file returns under Section 139 (4B) (ITR 7)
• Any business/businesses.
• A resident Indian who owns property or has a financial interest in a company, or has signatory authority over any accounts held outside of the nation.

Benefits of Online Tax Payments

The following are the advantages of paying taxes online-

• You can withdraw funds from the account immediately.
• Net banking allows you to pay your taxes from anywhere, 24 hours a day, seven days a week.
• The payment's transaction ID will be available in the bank account.
• The information you enter on the e-challan will be forwarded straight to the Income Tax department.
• You can check the Tax Information Network website to see if your payment was received by the department.