Income Tax

Income Tax is a direct tax introduced by the Government of India on any income (other than that generated from agriculture and related activities) according to the Income Tax Act, 1961. It applies to the taxable income earned by individuals. Mostly those with an income of over Rs. 2.5Lakh/annum is applicable to pay income tax under the ITA till 31st August of the preceding year. Taxes are essential for any nation to develop and income tax is the main source of revenue for the government, which is used for the upliftment of major sectors of the country.


Who are eligible for File Income Tax Returns Online?

India follows an income-tax structure resulting in high-income earners falling in higher tax rate slabs. Any individual who falls under the category to pay income tax is eligible to file income tax returns. On the other hand, if someone has an income is below the taxable limit, one can always file a nil return to get the associated benefits.


According to the Income Tax Act, the person is eligible to file ITR if they belong to the following categories.


  1. Indian citizens having an annual income of more than or equal to Rs. 2.5 Lakhs.


  1. Indian citizens above 60 years who have an annual income of more than 3 Lakhs.


  1. Citizens over the age of 80 with an annual income of more than 5 Lakhs.


  1. A firm, Cooperative Society, BOI, AOP, Artificial Juridical Person, and Local Authority (ITR 5).


  1. If the person is a resident of India but has property outside India.


  1. An assessee who is responsible for producing returns U/S 139 (4B) (ITR 7).


  1. If the person is a resident Indian with signing authority of any account that you are holding outside India.


  1. If you claim tax relief under sections 90 or 90A or the deductions were claimed as per section 91.


  1. All companies are liable.


How to Pay Income Tax Online?

The Income Tax department of India has used the power of technology to ensure the payment of taxes on time and in a hassle-free and easy manner. The salaried individuals can fill their income tax online by following some easy steps. For the ITR filling person should make sure that online payment can only be done through net banking.


Step 1:

Visit the Tax Information Network

To pay income tax online, visit the tax information network of the income tax department and click on the proceed option inside “CHALLAN NO./ITNS 280” as the preferred income tax challan for online payment.


Step 2:


Enter Personal Information

For individuals:


1st Step: Select (0021) Income Tax in ‘Tax applicable option’.

2nd Step: Select the type of payment correctly from the following:

  1. (100) Advance Tax
  2. (102) Surtax
  3. (106) Tax on Distributed Profit
  4. (107) Tax on Distributed Income
  5. (300) Self Assessment Tax
  6. (400) Tax on Regular Assessment

Select the option ‘Self-assessment tax’, if person have any taxes due to pay.

3rd Step: Select the mode of payment of your choice. There are two options available – Net banking or Debit Card.


4th Step: Enter PAN number and select relevant Assessment Year. For the financial year.

5th Step: Enter your complete address.

6th Step: Enter the captcha code and click on ‘Proceed’.


Step 3:

Cross-check all the information provided by you and then you will have to submit the request to the bank. You will be directed to the bank’s payment page.


How to File Income Tax Return after the Payment?

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


Advance Tax Payment

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


Following are a few categories in which individuals have to make advance income tax payments. 


For freelancers and business owners.


Advance tax calculation and payment

To calculate someone payable advance tax amount, the person will have to know their taxable income first. To do so, the person has to add their earnings from –


  1. All sources like salary, capital gains, interest, etc.


  1. Freelancers will need to fill an estimate of their annual income and deduct their applicable expenses from it.


  1. Next, individuals have to determine the deductions allowed on their income.


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

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

Moreover, individuals can 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. Keeping these few details in mind, it is easier to file the returns successfully after making an income tax online payment in full.