Overview: The Central Board of Direct Taxes (CBDT) e-Pay Tax facility allows taxpayers to generate challans and initiate tax payments through the Income Tax Department’s e-Filing portal without logging in. This guide explains payment methods, tax heads, Challan Reference Number (CRN) validity, relevant forms, correction procedures and the consequences of non-compliance.
Businesses use e-Pay Tax to deposit advance tax, pay tax demands and deposit tax deducted at source (TDS) or tax collected at source (TCS). An incorrect challan or missed deposit can cause tax-credit mismatches, interest liabilities and additional compliance work.
The Income-tax Act, 2025, came into effect on 1st April, 2026. Payments relating to Assessment Year (AY) 2026-27 and earlier generally fall under the Income-tax Act, 1961, while Tax Year (TY) 2026-27 onwards falls under the new Act. For TDS/TCS, the applicable Act depends on when the earlier of credit or payment occurs, not simply when the challan is paid.
What Can You Pay Through e-Pay Tax?
The e-Pay Tax portal supports advance tax, self-assessment tax, TDS/TCS, regular-assessment demands, interest, fees, penalties and other specified receipts, depending on the applicable Act and payment category.
Payment methods include net banking, debit card, payment gateway, RTGS/NEFT and Pay at Bank Counter (over the counter, or OTC). Payment gateways may support credit cards, debit cards, UPI and net banking. Cash payments at the counter cannot exceed ₹10,000 per challan. Bank and payment-provider conditions may also apply.
Keep the correct PAN or TAN, a mobile number for OTP verification, the tax computation, the relevant AY or TY and access to a supported payment method.
How to Pay Income Tax Online Without Login
Step 1: Open e-Pay Tax
Visit the Income Tax Department’s e-Filing portal and select e-Pay Tax under Quick Links.
Step 2: Verify PAN or TAN
Enter the relevant PAN or TAN and mobile number. Verify the details using the six-digit OTP. Check the taxpayer information displayed before proceeding.
Step 3: Select the Applicable Act
Select the Income-tax Act, 1961, for payments relating to AY 2026-27 and earlier, or the Income-tax Act, 2025, for TY 2026-27 onwards, as applicable.
Step 4: Select the Payment Category and Tax Head
For common PAN-based income-tax payments under the 1961 Act, the relevant minor heads include:
- 100 – Advance Tax: For eligible advance-tax payments.
- 300 – Self-Assessment Tax: For tax payable after calculating the final liability.
- 400 – Regular Assessment Tax: For payments against applicable assessment demands.
Major Head 0020 denotes Corporation Tax, while Head 0021 denotes Income Tax other than Companies.
For TY 2026-27, the self-assessment-tax payment option becomes available after the tax year closes, from 1st April, 2027.
TDS/TCS payments use a separate workflow. ITNS 281 applies to relevant payments under the 1961 Act, while ITNS 281N applies under the 2025 Act from TY 2026-27 onwards.
Under ITNS 281N, Minor Head 200 covers TDS/TCS payable, 400 covers regular-assessment payments, 500 covers other receipts and 800 covers payment against a PAN-based TDS demand. The major heads remain 0020 and 0021.
Certain transactions under the new Act may require Form 141, a challan-cum-statement for specified TDS deductions under Section 393, rather than the ordinary payment-and-separate-statement process. Select the applicable workflow.
Step 5: Enter the Amount and Choose a Payment Method
Enter the tax amount and applicable components, such as interest, surcharge, cess, penalty or fees. Follow the instructions for the chosen method.
Under Section 63 of the Income-tax Act, 2025, read with Rule 333 of the Income-tax Rules, 2026, companies and persons covered by the specified provisions must pay electronically. They cannot use the Pay at Bank Counter mode where this restriction applies.
Step 6: Confirm Payment and Download the Receipt
A generated CRN does not confirm successful payment. It is generally valid for 15 days. For advance-tax challans generated on or after 16 March, payment must be made within 15 days or by 31 March of that financial year, whichever is earlier. Where a cheque or demand draft is presented to the authorised bank within the challan’s validity period, validity is extended by another 90 days.
After payment, check that the status shows Paid and a Challan Identification Number (CIN) has been generated. Download the receipt and retain it for accounting, tax-credit reconciliation and statutory reporting.
Tax-Payment Errors, Penalties and Remedies
1. Incorrect Tax Head, Tax Period or PAN
An incorrect minor head or AY/TY may prevent a payment from matching the intended liability. Under the 1961 Act, a resulting mismatch may affect return processing, including an adjustment under Section 143(1), depending on the circumstances.
Eligible, unconsumed challans can generally be corrected after login. AY/TY corrections must normally be requested within 7 days of the challan deposit date, while major-head and minor-head corrections generally have a 30-day window. Only one online correction request is permitted per challan. Other cases may require the Jurisdictional Assessing Officer (JAO).
PAN cannot be corrected through the standard online challan-correction facility. The portal does not directly refund or reverse a mistaken challan. Depending on the circumstances, the taxpayer may need to claim eligible tax credit in the relevant return or approach the JAO for a refund or adjustment. TDS/TCS challans follow the applicable separate correction procedure.
2. Delayed Tax or Advance-Tax Payments
Under the 1961 Act, Sections 234B and 234C provide for interest in specified cases of advance-tax shortfall or deferment. Section 234A may apply when a return is filed late and tax remains payable. Under the 2025 Act, Sections 424 and 425 address corresponding advance-tax interest liabilities.
Interest is separate from a penalty. Its calculation depends on the applicable provision, period of default and tax liability. Businesses should estimate advance tax using expected income, available credits and the prescribed instalment dates.
3. TDS/TCS Deposit and Reporting Defaults
Failure to deduct or collect tax, deposit it on time or file the prescribed statement can lead to additional liabilities.
Under Section 398 of the 2025 Act, interest generally applies at 1% per month or part of a month for failure to deduct or collect tax, and 1.5% per month or part of a month for failure to deposit tax already deducted or collected. The corresponding provisions under the 1961 Act include Section 201(1A).
For legacy periods, Section 234E provides a late-filing fee of ₹200 per day, capped at the amount of tax deductible or collectible. Section 271H can impose a penalty of ₹10,000 to ₹1 lakh in covered cases, subject to statutory conditions and reliefs. Apply the corresponding provisions of the new Act to transactions governed by it rather than automatically using old section numbers.
Businesses should deposit outstanding tax, calculate applicable interest and fees, file or correct the relevant statement and respond to departmental notices within the prescribed time. Non-deposit of tax already deducted can also expose the responsible person to recovery proceedings and, in specified cases, prosecution.
4. TDS/TCS Forms and Reconciliation
For periods governed by the 1961 Act, relevant quarterly statements include Form 24Q for salary TDS, Form 26Q for specified resident payments, Form 27Q for specified non-resident payments and Form 27EQ for TCS.
Under the 2025 Act, Form 138 covers specified salary-related TDS, Form 140 covers specified non-salary payments to residents, Form 144 covers specified non-salary payments to non-residents, and Form 143 covers TCS, depending on the transaction. Form 168 is the Annual Information Statement (AIS) under the new Act. Form 26AS remains relevant for applicable legacy periods.
Match challans with the books of account, section codes, statements and tax-credit information. Correct discrepancies before filing returns or responding to a demand.
Setindiabiz Support
Setindiabiz supports businesses with tax-payment records, TDS/TCS compliance and statutory reporting, helping management maintain accurate records and meet filing obligations.
- TDS/TCS compliance: Support with applicable deposit and reporting requirements, challan verification, deduction records and statement corrections.
- Tax-payment reconciliation: Review challans against books of account and tax-credit records to identify incorrect heads, missing entries and mismatches.
- Return filing and audit coordination: ITR filing support for applicable filing requirements, together with record preparation and coordination with an appropriately qualified professional where an audit or certification is required.
- Notices and correction matters: Our taxation experts review discrepancies, identify the appropriate correction route and assist with supporting records and representations, where applicable.
Making a payment is only one part of tax compliance. Businesses must also ensure that the amount reaches the correct tax head, is reflected in their records and is reported in the prescribed form.
FAQs
Yes. Select e-Pay Tax under Quick Links, verify PAN or TAN through OTP, choose the applicable payment category and complete the payment using an available method.
Minor Head 100 is used for eligible advance-tax payments, while Minor Head 300 is used for eligible self-assessment-tax payments under the applicable payment structure.
Eligible, unconsumed challans can generally be corrected after login. AY/TY corrections normally have a 7-day window and major- or minor-head corrections get a 30-day window. PAN corrections require a different remedy.
Depending on the applicable Act and circumstances, late filing can attract fees, interest or penalties. Under the 1961 Act, Section 234E provides a fee of ₹200 per day, capped at the tax deductible or collectible, while Section 271H may apply to covered defaults.
Verify the PAN/TAN, tax period, payment category and amount before paying. After payment, confirm the Paid status, retain the CIN-backed receipt and reconcile the challan with the relevant records.
