Online Tax Payment From Another Bank Account

Online Tax Payment – epayment of Tax from another bank Account : Is this tax payment is valid in the eyes of Income Tax Department?

The aforementioned problem is questioned frequently by the majority of the tax payers. Income Tax Department has issued notification that online tax payment is compulsory for some persons. However, most of the tax payer don’t know how to make tax online? There is also another problem that tax payer don’t like to give their bank user id and password to someone else for a security reason.

For considering above problem department has issued circular no.5/2008 Dt. 14/7/2008 that a person can pay tax from any one’s bank account.

1. A person can pay tax from any one’s bank account.
2. TDS/TCS are also covered in the word “tax” for online payment.

Full Text of Circular No.5/2008 Dt. 14/7/2008

With a view to facilitating electronic Publish Postpayment of taxes by different categories of taxpayers, it is hereby clarified that, – an assessee can make electronic payment of taxes also from the account of any other person. However, the challan for making such payment must clearly indicate the Permanent Account Number (PAN) of the assessee on whose behalf the payment is made. It is not necessary for the assessee to make payment of taxes from his own account in an authorized bank. Further, it is also clarified that payment of any amount by a deductor by way of tax deducted at source (TDS) or tax collected at source (TCS) shall fall within the meaning of ‘tax’ for the purpose of the rule 125 of the Income-tax Rules, 1962.

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