What is E-Tax Payment System in India?

Last Updated : March 10, 2023, 5:42 p.m.

Understanding Income Tax regulations and practices, calculating tax obligations, and paying taxes accordingly have always been seen as challenging and complex tasks. Previously, managing taxes required a lot of paperwork, documentation, form completion, and professional assistance. Additionally, a lot of time and effort was wasted filling out paper forms, compiling them, and then waiting in line to file an income tax return or a challan for the payment of taxes. However, tax management has changed significantly as a result of technological advancements and digitisation.

The government has worked diligently over the years to create the Income Tax Management System with the use of technology for e filing income tax. It has been somewhat successful in streamlining the process – right from submitting forms to amending Assessment Orders online.

E-Tax Payment System

A digital platform called the e-Tax Payment System allows individuals and companies to pay their taxes electronically to the government. Indirect Taxes (Value Added Tax, Service Tax, etc.), Direct Taxes (Income Tax, Corporate Tax, etc.), Excise Duty, Customs Duty, and other taxes are all accepted through the e-Tax Payment System. The e-Tax Payment System has transformed the way taxes are paid in India, making the procedure faster, easier, and more convenient.

Taxpayers can make payments on the platform whenever it’s convenient for them, avoiding the need to go to a government office during business hours. The e-Tax Payment System also eliminates the need to keep physical tax payment records, lowering the risk of lost information and making it easier to maintain track of tax records. Additionally, the e-Tax Payment System frees businesses from travelling to a bank or government facility to pay their taxes.

Elements of E-Tax Payment System

The elements of the e-tax payment system include the following:

1. Permanent Account Number (PAN): The PAN is linked to all data regarding taxes paid, returns filed, return assessments, etc.
2. Tax Deduction and Collection Account Number (TAN): It is another necessary element for effective e filing income tax and payment of your income tax.
3. E-Payment of Taxes: All assessees with a valid PAN/TAN and a net banking facility are eligible for the facility.
4. Electronic Return Acceptance and Consolidation System (ERACS): The link between the taxpayer and a web-based tool for uploading TDS, Tax Collection at Source (TCS), and Annual Information Return (AIR) on the TIN’s main system is called the Electronic Return Acceptance and Consolidation System (ERACS).
5. Online Tax Accounting System (OLTAS): The Online Tax Accounting System (OLTAS) is a database that helps the Income Tax Department in overseeing the collection of taxes from around the nation.

Features of E-Tax Payment System

Some of the distinctive features of the e-tax payment system are as follows:

Ease of Use

The electronic tax payment procedure is simple. Taxpayers only need a few clicks to log in to their accounts and make payments. It is simpler for them to stay on top of their tax duties when they have access to their tax data and reminders about deadlines.

Convenience

Taxpayers can use the e-tax payment system to send payments at any time from any location. By doing this, there is no need to go to a tax office or stand in line in order to pay. Additionally, taxpayers have the option of setting up automatic payments, so they never forget a deadline.

Security

The e filing income tax payment system is secure and encrypted, guaranteeing that taxpayer information is kept private. The system also employs several security measures to guard against fraud and prevent unauthorised access to taxpayer accounts. The platform’s encryption of payments lowers the possibility of data theft. Two-factor authentication is also used to guarantee that only authorised users can access the platform.

Better Recordkeeping

With the e-tax payment system, taxpayers can keep a digital log of each tax payment they make. It is now simpler for individuals to keep track of their tax history and ensure they are current on their payments. By keeping a complete record of all tax payments, the e filing income tax lowers the possibility of disagreements and allows users to view their tax records anytime and anywhere.

Multiple Payment Methods

The website accepts payments from credit cards, debit cards, net banking, and digital wallets, among other payment methods. This enables taxpayers to select the payment option that best suits their needs. The e-tax Payment System accepts tax payments in a number of currencies, making it simpler for businesses that do business internationally to pay taxes.

Mobile App for E Filing Income Tax

The new income tax portal will be available as an app for mobile phones. In order to give taxpayers time to adjust to the new features, this app will be made accessible following the new portal’s initial launch. The mobile app will have access to all the key features of the income tax portal that are available on the PC.

Query Resolution

The live chatbot/agent will quickly help people file their ITRs and address a variety of other tax-related questions. Additionally, the portal offers taxpayers digital support through in-depth FAQs, tutorial videos, and user guides. In addition, the new portal will feature a “new call centre” to help users get their questions answered quickly.

How to Use an E-Tax Payment System?

To use the e-tax payment system, a user can follow the following steps:

Step 1: Register for E-Tax Payment System

You must first register for an account if you want to use the e-Tax Payment System. Visit the e-Tax Payment System website and select “Sign Up” to get started. Following that, you must submit some basic data such as your name, address, and contact information.

Step 2: Log in to Your Account

You can access the e-Tax Payment System by entering your username and password after you have registered for an account.

Step 3: Select the Tax Type

Once you have logged into your account, choose the type of tax you want to pay. The e-Tax Payment System accepts a variety of taxes, such as income tax, corporate tax, value-added tax and service tax. It also accepts excise duty and customs duty.

Step 4: Enter Payment Details

Choose the payment option you want to use before entering the tax amount you want to pay. Payments can be made using various payment methods, including credit cards, debit cards, net banking, and digital wallets, using the e-Tax Payment System.

Once you’ve provided your payment information, click the “Submit” button to complete your transaction.

Step 6: Receive Confirmation

Once your payment has been received, you will get a confirmation email or SMS. You can use the payment receipt included in this email or SMS to keep track of your taxes.

Step 7: View Payment History

By entering into your account and selecting the “Payment History” page, you can see a list of all of your tax payments. This will make it simpler for you because you’ll have access to a complete record of all of your income tax e-filing payments.

Conclusion

As technology advances, it is expected that the e-tax payment system will grow more popular among taxpayers and will play an increasingly important role in the efficient and effective management of taxes. The e-Tax Payment System is a digital platform that provides various services that simplify the process for individuals and business owners to make tax payments and keep track of their tax records. Whether you are an individual or a business, the e-tax payment system provides a simple and effective way to pay your taxes.