The calculation and payment of income tax can be a complicated and daunting process for those new to it. Certain things can be confusing when you try to make your online income tax payment.This article will help you with a step by step explanation of the process.
Calculation of Advance Tax
In order to calculate the advance tax, you need to consider all possible income sources of an individual. An easy way to do this is by evaluating the bank account statements or the credit details of the various dividends and interests.
Other factors when calculating the advance tax includes,
- Expenses- Self-employed Individuals, freelancers, and professionals can subtract the costs that may include but are not limited to, rent, electricity charges, internet, and mobile bills,travel expenses, and so on. Maintaining an account of all these expenses is advised.
- Deductions- to calculate the total tax to be paid you need to take into account the various deductions and exemptions until finally subtracting the TDS amount.
The final amount calculations after the validation of all these factors are the payable advance tax.
The Online Payment Process
Now that you are aware of the various factors to be considered in calculating the advance tax, we can move on to the online payment process itself.
Step 1- Navigate the Portal
Above is a preview of the web portal. For the option for paying the advance tax, self-assessed tax or regular assessed tax, select the option Challan No./ITNS 280.
Step 2– Enter the Personal information
Once the above option is selected, you will arrive at the next page whereyou are required to add the necessary information.
- Select(0021) income tax (other than companies) under tax applicable.
- Select the type of payment, for advance tax select (100) advance,for Self assessed tax select (300) self-assessed, for regular assessment tax select (400) tax on regular assessment.
- Choose the mode of payment.
- Fill in the PAN number and the other details.
- Enter the captcha code and proceed.
Step 3– Confirm the Details
The following confirmation page will pop up and ask for confirmation on the details entered by you. Check all the information and select “I Agree” and click the “submit to the bank” option.
Step 4- payment
After selecting the above options, you will be redirected to your bank portal from where you will need to add the information regarding the tax details and the debit or credit card details after which you can proceed to make the payment.
Step 5- The Receipt
After the successful payment, a receipt or a taxpayer counterfoil will be generated. Makes sure to note down the date and the BSR code. Also,please keep a copy of the receipt as it may be required for the computations of the final returns.