On last day, e-filing may come to the rescue

With Tuesday (March 15) being the last day for paying the advance tax, e-filing could come to your aid. Software professional, Ashwin Kumaran, is planning to do the same. “My tax liability is Rs 50,000 for the assessment year. I just have a day left and I am not sure if my cheque will get cleared on the last day,” says Kumaran.

Advance tax needs to be paid by all — individuals, consultants, businessmen and salaried. However, the liability to pay advance tax arises only if the tax payable after tax deducted at source (TDS) is more than Rs 10,000. For instance, if the tax on total estimated income for the year is Rs 1 lakh and TDS estimated from this income is Rs 60,000, the amount payable as advance tax will be Rs 40,000. Failure to pay the tax will attract a mandatory interest of one per cent every month on the outstanding amount.

You can pay the advance tax in four instalments through the year — June 15, September 15, December 15 and March 15.
 

THE PROCEDURE

• Visit http://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp
• Select appropriate challan form (ITNS 280)
• Next, select 0021 for income tax, called Major Head
• Fill other details like name, PAN, assessment year (2011-2012)
• Select 100 (advance tax, called minor head), for type of payment
• Select the bank from drop down menu (can pay through designated banks only)
• Click the proceed button, which verifies PAN and shows the data entered
• Click on ‘submit to the bank’, which will take you to banking portal
• Log in for net banking, enter the tax amount and confirm the payment
• The payment challan counterfoil will be displayed containing CIN, payment details and bank name

For making an e-payment, you need a bank account with net-banking facility. It should also have the option for e-payment. “Although the money may take a couple of days to get debited, a taxpayer counterfoil will get generated immediately on payment. The counterfoil will have a challan identification number (CIN), which will help you track the tax status,” says a senior State Bank of India official.

To make the payment, visit the Income Tax Department’s tax information network (TIN) website, established by the National Securities Depository Limited. Next, select the challan number, which is ITNS 280 for self-employed and high net-worth individuals. It would take you to another page (an e-payment form) where you need to fill your details, including name, permanent account number (PAN), assessment year (current year 2011-12), address and mobile number.

Towards the end of the form, you need to fill the payment type. Write 100 for advance tax; it is also called ‘minor head’. Next, enter your bank name and proceed. Remember, you can make the tax payment through your designated banks only. To know if your bank provides this facility, you can check the list of banks on NSDL-TIN website, or check with your bank.

As you click the proceed button, a screen that will verify your PAN appears, which also shows you the data entered. Log in for banking, enter the payable tax amount and confirm. Last, payment challan counterfoil will be displayed, save it as proof.

“Those liable for a tax audit need to pay advance tax online. However, if you are not a professional or a company, you may pay it via cheque to your bank,” says Amitabh Singh, tax partner, Ernst & Young. Typically, companies, individuals (businessmen and professionals) and partnership companies are liable for a tax audit. Individuals engaged in business with a gross receipt of over Rs 60 lakh (for assessment year 2011-12) and Rs 15 lakh for profession need a tax audit. In such cases, a tax deduction account number of TAN would be needed.