Gone are the days when paying taxes meant standing in long bank queues with paper forms. For the 2025-26 financial year, the Indian Income Tax Department has made the online payment process remarkably smooth. Whether you are paying Advance Tax to avoid interest or Self-Assessment Tax before filing your return, you can handle it all from your phone or laptop. With the e-Pay Tax portal, the system is now faster, safer, and much more intuitive. By following a few simple steps, you can settle your dues via UPI or Net Banking and get an instant receipt, ensuring your tax compliance is one less thing to worry about.

Why should you pay your Tax online?

In 2025, digital tax payment will be the standard for almost every taxpayer in India. Here is why it’s the best way to go:

Instant Digital Receipt: You get your Challan (receipt) as soon as the payment is successful.
No More Manual Errors: Since you use your PAN, the system automatically pulls your name, preventing you from paying into the wrong account.
24/7 Access: You can pay even at 11 PM on a Sunday. No bank holidays can stop you.
Zero or Low Fees: Most payment modes like UPI and Debit Cards are completely free of transaction charges.

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Simple steps to pay your Tax online (FY 2025-26)

You don’t even need to log in to the portal to make a payment, though having your PAN ready is essential.

Step 1: Head to the e-Filing Portal

Visit the official website: incometax.gov.in. On the home page, find the e-Pay Tax button under the Quick Links section.

Step 2: Verification

Enter your PAN twice (just to be sure there are no typos). Provide any mobile number to receive a 6-digit OTP. Once you enter the OTP, the system will show your name in a masked format (e.g., A*** K**** S****). Check if it matches yours and click Continue.

Step 3: Choose the Right Box

You will see a few options. For standard income tax, click Proceed under the Income Tax tile.

Step 4: Pick the Year and Type (Crucial Step!)

This is where most people get confused. For income earned between April 1, 2024, and March 31, 2025:

Assessment Year (AY): Select 2025-26.
Type of Payment:

Choose Advance Tax (100) if you are paying before March 31, 2025.
Choose Self-Assessment Tax (300) if you are paying after March 31, 2025.

Step 5: Enter the Amount

A table will appear. You only need to fill in the amount in the Tax row. If you have calculated interest or cess separately, you can add them, but for most individuals, entering the total tax in the first box works fine.

Step 6: Select Your Payment Mode

The 2025 portal offers great flexibility:

Net Banking/Debit Card: If your bank is listed directly.
Payment Gateway: Use this if you want to pay via UPI, Credit Card, or any bank not listed in the first option. (Pro Tip: UPI is the fastest and usually free.
RTGS/NEFT: Best for very large amounts.

Step 7: Pay and Save

After completing the payment, a Challan will be generated. Download the PDF immediately. It contains the BSR Code and Challan Number, which you will need to enter into your ITR form later.

Comparison of Payment Methods

Mode

Speed

Fees

Best For

UPI

Instant

₹0

Small to Medium payments

Net Banking

Fast

₹0

Most reliable for all amounts

Debit Card

Instant

₹0

Direct bank deduction

Credit Card

Instant

Small % fee

When you want reward points

RTGS / NEFT

2-4 Hours

Bank charges

Very large payments

Important Dates to Remember (2025-26)

Tax Milestone

Due Date

Advance Tax (Last Installment)

March 15, 2025

Self-Assessment Tax

Before you file your ITR (July 31, 2025)

TDS Payments

7th of every month

Conclusion

Paying your taxes online is now a simple, 10-minute task that fits right into your digital lifestyle. The e-Pay Tax system for 2025-26 has taken away the stress of paperwork and replaced it with instant receipts and easy-to-use interfaces. The most important part of the process is simply ensuring you’ve selected Assessment Year 2025-26 and keeping your challan safe for your ITR filing. By staying proactive and paying digitally, you’re not just saving time, you’re ensuring that your financial records remain clean and penalty-free.

Frequently Asked Questions (FAQs)

What if the portal shows Payment Failed, but money is deducted?

Don't pay again immediately. Usually, the bank and the portal sync within 24 hours. Check the Payment History tab the next day; your challan will likely be there.

I selected the wrong year (AY). Can I fix it?

Yes. You can go to the 'Service Request' section on the portal and ask for a Challan Correction. It usually takes a few days for the officer to approve it.

Can I pay my tax in cash at a bank?

Yes, but you still have to start online. Select the Pay at Bank Counter option, print the generated challan, and take it to the bank with your cash or cheque.

Is it okay to pay using my spouse’s bank account?

Yes. As long as the PAN entered in Step 2 is yours, the payment can be made from any bank account or UPI ID.

What is the BSR code?

BSR stands for Basic Statistical Return. It’s a 7-digit code that identifies the bank branch where your tax was deposited. You’ll find it on your final receipt.

Can I pay tax using a Credit Card?

Yes, but you must select the 'Payment Gateway' option first. Note that banks often charge a convenience fee for using a credit card for taxes.

Why does the system ask for a mobile number?

This is only for an OTP to verify that a real person is making the payment. It doesn't have to be the number linked to your Aadhaar.

Is Advance Tax mandatory?

Only if your estimated tax liability for the year (after TDS) is more than ₹10,000. If it’s less, you can wait and pay it as Self-Assessment Tax.

How do I know if my payment reached the government?

A few days after paying, check your AIS (Annual Information Statement) or Form 26AS on the portal. Your payment will reflect there under the 'Taxes Paid' section.

Do I need to inform the IT department after paying?

No. Once the challan is generated, the system updates automatically. You just need to mention the details when you file your ITR at the end of the year.

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