What Are The Formalities For Income Tax Payment?

Income Tax is a method of direct taxation methods that is liable to be paid by every individual be it of the Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individual (BOI), corporate firms, companies, local authorities and all the other artificial juridical persons that are generating income. These taxes are to be collected from an annual income of a person that too from the annual cycle of a financial year starting from 1st of April of one year called as the previous year to the 31st of March of the next consecutive year called as the assessment year. Previous year is said to be a year in which the income is earned and the assessment year is the year in which the tax is charged.

Income tax Payments are collected by the government in three different ways:

  • tax in forms of advance taxes and self-assessment taxes from voluntary payment by the taxpayers
  • TDS or Taxes Deducted at source from the monthly salary of the individual when he/she receives it
  • And Taxes Collected or TCS at the end of the year.

How can you perform Income Tax Payment online?

There are two ways in which you can pay income tax. These include;

  • By cash at the counter of the authorized bank
  • By net banking or credit card

Documents required making Income Tax Payment online

The following are the important document required before you make a online income tax payment:

  • Valid Permanent Account Number (PAN): Every bank account holder has a valid PAN card number that is unique for that individual
  • An internet banking account allowing you the facilities of internet banking
  • an fast internet connection
  • A sufficient bank balance to make the required amount of transfer

Hope this above mentioned information have increased your knowledge regarding this. Being a smart one, you need to be aware of it.