Income Tax: How are e-filing and e-payment of taxes different? Know details here

Income Tax: Filing taxes has become easier as the government has transitioned from traditional to digital methods. But taxpayers sometimes get confused between different terms which can create problems while submitting the forms correctly. One such common confusion is between e-filing and e-payment. 

Let's deep dive into the terminologies and understand how are these different. 

What is e-filing of taxes? 

E-filing is simply a process of electronically filing Income tax Returns/Forms through the Internet. It can be done through the income tax department's official website. 

To start the process of e-filing, taxpayers need to register on the ITR portal, and then select the appropriate ITR form. Fill in the form and choose a suitable method of verification. Finally, review the form, submit it, and complete the verification process. 

Step-by-step process of e-filing: 

Step 1 - Go to the Income Tax e-filing website https://www.incometax.gov.in/iec/foportal/

Step 2 - Register or Log in to the website

Step 3 - Enter the required details

Step 4 - Select the mode of Filing

Step 5 - Select the status

Step 6 - Select the appropriate ITR form

Step 7 - If you select ITR 1

Step 8 - If you select ITR 4

Step 9 - Summary of tax computation

Step 10 - Proceed to validation

Step 11 - Submit the ITR

Now, let's understand what is e-payment 

E-payment of taxes is a facility launched by the Income Tax Department that allows taxpayers to make income tax payments using the net banking facility.

How to pay taxes online?

Step 1: Go to https://www.incometax.gov.in/iec/foportal/

Step 2: Select ‘e-Pay Tax’ from the quick links

Step 3: Enter PAN/TAN and mobile number for OTP verification

Step 4: Enter the OTP received on the mobile number and click on continue

Step 5: Confirm the details of ‘PAN/TAN’ and ‘Name’ and click on continue.

Step 6: Select the appropriate payment and click on proceed

Step 7: Select ‘Assessment Year’ and ‘Type of Payment’ and click on Continue.

Step 8: Enter the amount of tax, surcharge, cess, etc. (if any) and click continue.

Step 9: Select the appropriate mode of payment and click on continue. If the taxpayer wishes to make a payment using a credit card or UPI, he needs to select ‘Payment Gateway’.

Step 10: Verify all the details appearing on the challan and pay the tax.

Step 11: On successful completion of the transaction, the challan of payment (i.e., receipt of payment) will be generated and will be displayed on the screen.

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