NOTIFICATION NO. 34/2008, DATED 13-3-2008

In exercise of the powers conferred by sub-section (1) of section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (Fourth Amendment) Rules, 2008.

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, after rule 124, the following rule shall be inserted, namely:-

Electronic-payment of tax.

125. (1) The following persons shall pay tax electronically on or after the 1st day of April, 2008:-

(a) a company; and

(b) a person (other than a company), to whom provisions of section 44AB are applicable.

(2) For the purposes of this rule :-

(a) pay tax electronically shall mean, payment of tax by way of-

(i) internet banking facility of the authority bank; or

(ii) credit or debit cards;

(b) the word tax shall have the meaning as assigned to it in clause (43) of section 2 of the Act and shall include interest and penalty.

[F.No. 134/37/2007-TPL]

( e-payment of Direct Taxes Concept and procedure - article)

 

What is e-payment of taxes?

 

�Similar to booking tickets or making payments online

.
��All Direct Taxes e.g. Income Tax, Corporate tax, FBT, BCTT (TDS, Advance tax, self assessment tax) to be paid online using net banking facility.

��Mandatory for all Companies and 44AB cases from 1stApril 2008 to pay taxes through e-payment facility using net banking account.

��Credit/debit card facility is yet to be

operational.

How do I make e-payment?

 

Taxpayer can make tax payment from any location without going to Bank branch.

��Amount of tax debited to his bank account electronically and credited to GOI

��Log in to websi teof Income Tax Department: www.incometaxindia.gov.in

��Choose the button‘pay taxes online

’

How do I fill the challan?

��Taxpayer is taken to Tax Information(TIN) website where all Banks offering e-payment facility are listed

��Then I choose the challanfor the tax I wish to pay e.g. ITNS 281 for TDS, ITNS 280 for Income Tax etc

��Assisted with FAQsfor making e-payment

 

What do I do after I fill the challan

 

��After filling the challan, the taxpayer chooses his Bank

��At the bank website he enters his user id, password etc and completes the transaction

 

What happens at the Bank website?

��The transaction is authorised by the Bank

.
��Taxpayer receives immediate, confirmed receipt/ counterfoil of challan having a challan identification number (CIN).

��Counterfoil can be printed or saved

.
��Taxpayer should quote his challan identification number (CIN) on his income tax return.

 

 

How do I make online tax payment sitting at

home/office?

1. Open a net-banking account with any of the banks listed below.

2. Go to website www.incometaxindia.gov.in , click on ‘pay taxes on-line’.

3. Fill in the required challan online. Help is available on screen as FAQ, downloads etc.

4. Make tax payment through net-banking account online.

5. A challan counterfoil will be available instantaneously on the screen with CIN (challan identification number). The Challan Identification Number (CIN) on this counterfoil should be quoted in Return of Income.

6. Print the counterfoil and also save it in the computer if required.

7. Check if your payment has reached the Income Tax Department at https://tin.tin.nsdl.com/oltas/servlet/QueryTaxpayer .

 

What are the advantages of paying taxes online

1. You can pay taxes from any location at any time through your net-banking account.

2. Instant transfer of funds from your account.

3. What you write on the e-challan will be directly sent to Income Tax Department. Banks will not do any data entry.

4. You can save/print the challan copy and the receipt copy.

5. As soon as your Bank authorizes payment of the amount, you will receive a clear, legible receipt/counterfoil from your Bank.

6. Transaction id of the e-payment transaction will be available to you in your bank statement.

7. You can check online if your money has actually reached the I-T Department. For this you have to go to Tax Information Network Website: https://tin.tin.nsdl.com/oltas/index.html and click the box "CIN Based View"

 

 

Which Banks offer e-payment facility?

1. Axis Bank

2. State Bank of India

3. Punjab National Bank

4. Indian Overseas Bank

5.Canara Bank

6. Indian Bank

7. Bank of India
8. Corporation Bank
9. State Bank of Bikaner & Jaipur
10. State Bank of Travancore
11. State Bank of Indore
12. Vijaya Bank
13. HDFC Bank

14. Oriental Bank of Commerce
15. State Bank of Patiala
16. Bank of Baroda
17. IDBI Bank
18. State Bank of Mysore
19. Bank of Maharashtra
20. State Bank of Hyderabad
21. State Bank of Saurashtra
22. Union Bank of India
23. Allahabad Bank
24. Dena Bank
25. Syndicate Bank
26. ICICI Bank

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