Filing income tax used to feel like a long and stressful task, especially when it came to making the final payment. However, the Income Tax Department of India has made this process much smoother and quicker by introducing the ‘E-Pay Tax’ feature on the income tax e-filing portal. This feature now allows taxpayers to pay their tax dues directly online in just a few simple steps, using multiple payment methods.
This move aims to make the process more user-friendly for millions of taxpayers across India, especially salaried individuals, small businesses, and senior citizens who often find online tax systems confusing. Let’s understand how this new feature works and how you can benefit from it.
What Is E-Pay Tax and Why Is It Important?
The E-Pay Tax feature is an online payment facility available on the official income tax e-filing website — https://www.incometax.gov.in. This tool helps taxpayers clear their tax dues online safely and instantly. Whether you have to pay regular income tax, clear a pending tax demand, or deposit penalties or other dues, you can now do it through this digital platform.
Earlier, many people had to visit banks or deal with separate websites and payment gateways. Now, the entire experience is available in one place. Transparency, convenience, and faster processing are the main goals of this upgraded system.
Who Can Use the E-Pay Tax Feature?
This feature is open to all PAN holders who have to file or pay income tax in India. Whether you are:
- A salaried employee
- A freelancer or consultant
- A small business owner
- A senior citizen with investment income
- Someone with a tax notice or pending demand
You can use the e-pay facility without needing to log in to your account initially. However, if you’re logged in, the system automatically picks your details and makes it even easier to proceed.
Supported Payment Modes in E-Pay Tax
You can use any of the following modes to pay tax:
- Net banking
- Debit Card (only selected banks)
- UPI
- RTGS/NEFT from your bank account
- Over-the-Counter at authorised bank branches
- Payment Gateway using multiple options
This flexibility helps everyone, from tech-savvy users to those who still prefer visiting a bank, to choose their preferred mode of payment.
Step-by-Step Guide to Use the E-Pay Tax Feature
Let’s now look at the simple step-by-step process to use this feature for making tax payments:
Step 1: Visit the Income Tax e-Filing Portal
Open the official portal: https://www.incometax.gov.in
You do not need to log in at this point.
On the homepage, look at the right-hand side under “Quick Links”. Click on the option that says “E-Pay Tax”.
Step 2: Enter PAN and Mobile Number
Once you click on “E-Pay Tax”, the portal will ask for:
- PAN Number (Enter it twice to confirm)
- Mobile Number linked to your Aadhaar
Then, the system will send an OTP (One-Time Password) to your mobile number.
Enter the OTP to proceed.
This step ensures your tax payment is linked to the right PAN account and is fully secure.
Step 3: Confirm Taxpayer Details
Once verified, the portal will display the first four letters of your name and PAN, so you can confirm that the information is correct.
This step avoids payment mistakes due to wrong PAN numbers.
Step 4: Choose Reason for Payment
You now have to select why you are paying tax. The available categories include:
- Income Tax (Advance Tax, Self-Assessment Tax, etc.)
- Demand Payment (For pending dues or notices)
- Equalisation Levy
- Fee/Other Payments (Late fees, penalties, etc.)
Choose the correct option based on your situation.
Step 5: Select Financial Year and Tax Head
Next, select:
- Assessment Year (For example, FY 2024–25 will be AY 2025–26)
- Tax Head (Self-assessment tax, advance tax, etc.)
Be careful while selecting the correct year and tax head to avoid wrong payment credits.
Step 6: Enter the Amount to Pay
Now you need to manually enter how much tax you want to pay under each section, such as:
- Basic Tax
- Surcharge (if applicable)
- Cess
- Interest or late fee
- Penalty
If you’re unsure, it’s best to calculate your final tax amount first using a tax calculator or consult a tax professional.
Step 7: Choose Payment Mode and Bank
Once the amount is filled, the next step is to select the payment mode and choose your bank. You will be shown different options based on your bank’s availability.
If you select Net Banking, you’ll be redirected to your bank’s login page.
For NEFT/RTGS, you’ll receive a challan reference number and you can pay from your bank branch or net banking.
Step 8: Review and Confirm
You will now see a preview page with all your details:
- Name and PAN
- Financial year
- Payment reason
- Amount
- Mode of payment
Check everything carefully. Once verified, click on ‘Pay Now’.
You’ll be redirected to complete your payment securely.
Step 9: Get Payment Receipt
After a successful payment, you will receive a payment confirmation receipt. It will contain:
- Challan Identification Number (CIN)
- BSR Code
- Payment date
- Amount
- Bank name
This receipt is proof of your payment and is automatically linked to your PAN account.
You can use this CIN while filing your Income Tax Return (ITR) as a reference for tax paid.
Why This E-Pay System Is Better Than Before
This new system solves many old problems. Here’s how:
- No need to log in or register before starting
- All-in-one system for different types of tax payments
- Instant receipt generation
- Easy for self-employed, salaried, and senior citizens
- Avoids missed deadlines or interest due to late payments
- Saves time and reduces mistakes
The platform also ensures safety with OTP verification, encryption, and real-time updates to the taxpayer’s account.
What to Keep in Mind While Paying Tax Online?
Though the system is simple, here are a few important tips:
- Always check the correct financial year and tax type
- Use your own PAN and do not pay for others from your account
- If you’re unsure about tax heads, consult a chartered accountant
- Keep a copy of the payment receipt
- Make payment well before the ITR deadline
If you file taxes after the due date, penalties and interest may apply. So, this feature also helps you avoid extra charges by paying on time.
ITR Filing Deadline for Different Taxpayers
Here are the due dates for filing your ITR for the financial year 2024–25:
- 31 July 2025 – Salaried and non-audited taxpayers
- 31 October 2025 – Businesses that need audit but no international transactions
- 30 November 2025 – Taxpayers with international transactions or transfer pricing
To use the old tax regime or claim deductions, it’s important to file before these dates and pay all dues in time.
The e-pay tax facility is a big step towards making India’s tax system more digital, transparent, and user-friendly. With this feature, taxpayers no longer need to stand in long queues or worry about payment delays. One can now pay from the comfort of home using a mobile or laptop, anytime and from anywhere in the country.
