E-taxation Group 4

7/29/2019 E-taxation Group 4

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e-taxation

Introduction

Before the introduction of e-taxation, have to know about the taxation. What is taxation?

The most important source of revenue of the government is taxes. The act of levying taxes is

called taxation. A tax is a compulsory charge or payment imposed by government on

individuals or corporations. The persons who are taxed have to pay the taxes irrespective of

any corresponding return from the goods or services by the government. The taxes may be

imposed on the income and wealth of persons or corporations and the rate of taxes may vary.

Taxes in India are levied by the Central Government and the state governments. Some minor

taxes are also levied by the local authorities such the Municipality or the Local Council.

The authority to levy a tax is derived from the Constitution of India which allocates the

power to levy various taxes between the Centre and the State. An important restriction on this

power is Article 265 of the Constitution which states that "No tax shall be levied or collected

except by the authority of law. Therefore each tax levied or collected has to be backed by an

accompanying law, passed either by the Parliament or the State Legislature. In 2010-11, the

gross tax collection amounted to 7.92 trillion, with direct tax and indirect tax contributing

56% and 44% respectively.

Constitutionally established scheme of taxation

Article 246 of the Indian Constitution, distributes legislative powers including taxation,

between the Parliament of India and the State Legislature. Schedule VII enumerates these

subject matters with the use of three lists;

List - I entailing the areas on which only the parliament is competent to make laws,

List - II entailing the areas on which only the state legislature can make laws, and

List - III listing the areas on which both the Parliament and the State Legislature can

make laws upon concurrently.

Separate heads of taxation are is no head of taxation in the Concurrent List (Union and theStates have no concurrent power of taxation). The list of thirteen Union heads of taxation and

the list of nineteen State heads are given below:
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Central government

S.

No.Parliament of India

1 Taxes on income other than agricultural income (List I, Entry 82)

2 Duties ofcustoms including export duties (List I, Entry 83)

3

Duties ofexcise on tobacco and other goods manufactured or produced in India except (i)

alcoholic liquorfor human consumption, and (ii) opium, Indian hemp and other

narcotic drugs and narcotics, but including medicinal and toilet preparations containing alcoholor any substance included in (ii). (List I, Entry 84)

4 Corporation Tax (List I, Entry 85)

5Taxes on capital value of assets, exclusive of agricultural land, of individuals and companies,

taxes on capital of companies (List I, Entry 86)

6 Estate duty in respect of property other than agricultural land (List I, Entry 87)

7 Duties in respect of succession to property other than agricultural land (List I, Entry 88)

8Terminal taxes on goods or passengers, carried by railway, sea or air; taxes on railway fares

and freight (List I, Entry 89)

9Taxes other than stamp duties on transactions in stock exchanges and futures markets (List I,

Entry 90)

10 Taxes on the sale or purchase of newspapers and on advertisements published therein (List I,Entry 92)

11Taxes on sale or purchase of goods other than newspapers, where such sale or purchase takes

place in the course of inter-State trade or commerce (List I, Entry 92A)

12Taxes on the consignment of goods in the course of inter-State trade or commerce (List I,

Entry 93A)

13 All residuary types of taxes not listed in any of the three lists (List I, Entry 97)
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State governments

S.

No.State Legislature

1

Land revenue, including the assessment and collection of revenue, the maintenance of land

records, survey for revenue purposes and records of rights, and alienation of revenues (List II,

Entry 45)

2 Taxes on agricultural income (List II, Entry 46)

3 Duties in respect of succession to agricultural income (List II, Entry 47)

4 Estate Duty in respect of agricultural income (List II, Entry 48)

5 Taxes on lands and buildings (List II, Entry 49)

6 Taxes on mineral rights (List II, Entry 50)

7

Duties of excise for following goods manufactured or produced within the State (i) alcoholic

liquors for human consumption, and (ii) opium, Indian hemp and other narcotic drugs and

narcotics (List II, Entry 51)

8 Taxes on entry of goods into a local area for consumption, use or sale therein (List II, Entry 52)

9 Taxes on the consumption or sale ofelectricity (List II, Entry 53)

10 Taxes on the sale or purchase of goods other than newspapers (List II, Entry 54)

11Taxes on advertisements other than advertisements published in newspapers and advertisements

broadcast by radio or television (List II, Entry 55)
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12 Taxes on goods and passengers carried by roads or on inland waterways (List II, Entry 56)

13 Taxes on vehicles suitable for use on roads (List II, Entry 57)

14 Taxes on animals and boats (List II, Entry 58)

15 Tolls (List II, Entry 59)

16 Taxes on profession, trades, callings and employments (List II, Entry 60)

17 Capitation taxes (List II, Entry 61)

18Taxes on luxuries, including taxes on entertainments, amusements, betting and gambling (List II,

Entry 62)

19 Stamp duty (List II, Entry 63)

Any tax levied by the government which is not backed by law or is beyond the powers of the

legislating authority may be struck down as unconstitutional.

Income Tax Department

Income Tax Department functions under the Department of Revenue in Ministry of Finance.

It is responsible for administering following direct taxation acts passed by Parliament of

India.

Income Tax Act

Wealth Tax Act

Gift Tax Act

Expenditure Tax Act

Interest Tax Act

Various Finance Acts (Passed Every Year in Budget Session)

Income Tax Department is also responsible for enforcing Double Taxation Avoidance

Agreements and deals with various aspects of international taxation such as Transfer Pricing.
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Finance Bill 2012 seeks to grant Income Tax Department powers to combat aggressive Tax

avoidance by enforcing General Anti Avoidance Rules.

Central Board of Direct Taxes

The Central Board of Direct Taxes (CBDT) is a part of the Department of Revenue in the

Ministry of Finance, Government ofIndia. The CBDT provides essential inputs for policy

and planning ofdirect taxes in India and is also responsible for administration of the direct

tax laws through Income Tax Department. The CBDT is a statutory authority functioning

under the Central Board of Revenue Act; 1963.It is Indias official FATF unit. The Central

Board of Revenue as the Department apex body charged with the administration of taxes

came into existence as a result of the Central Board of Revenue Act, 1924. Initially the Board

was in charge of both direct and indirect taxes. However, when the administration of taxes

became too unwieldy for one Board to handle, the Board was split up into two, namely the

Central Board of Direct Taxes and Central Board of Excise and Customs with effect from

1.1.1964. This bifurcation was brought about by constitution of the two Boards u/s 3 of the

Central Boards of Revenue Act, 1963.

Organisational Structure of the Central Board of Direct Taxes: The CBDT is headed by

Chairman and also comprises six members, all of whom are Special Secretary to Government

of India.

Member (Income Tax)

Member (Legislation and Computerisation)

Member (Revenue)

Member (Personnel & Vigilance)

Member (Investigation)

Member (Audit & Judicial)

The Chairman and Members of CBDT are selected from Indian Revenue Service (IRS), a

premier civil service of India, whose members constitute the top management of Income Tax

Department.

Income tax rates

In terms of theIncome Tax Act, 1961, a tax on income is levied on individuals, corporations

and body of persons. The rate of taxes are prescribed every year by the Parliament in the

Finance Act, popularly called the Budget. In terms of the Finance Act, 2009, the rate of tax

for individuals, HUF, Association of Persons (AOP) and Body of individuals (BOI) is as

under;
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Income Tax Rates/Slabs Rate

As per budget 2012.

Up to 2,00,000 = 0%,

2,00,001 5,00,000 = 10%

5,00,001 10,00,000 = 20%,

10,00,001 upwards = 30%,

*Up to 2,50,000 (for resident individual of 60 years or above)= 0.

* Up to 2,35,000 (for individual female )= 0,

*Up to 5,00,000 (for very senior citizen of 80 years or above)= 0.

*Education Cess 2% +Secondary and Higher Secondary Education Cess 1% Education cess

is applicable (2%+1%)@ 3% on income tax

Service tax

Service tax is a part of Central Excise in India. It is a tax levied on services provided in India,

except the State ofJammu and Kashmir. The responsibility of collecting the tax lies with

the Central Board of Excise and Customs(CBEC).

The ex-Finance Minister of India, Pranab Mukherjee in his Budget speech has indicated thegovernment's intent of merging all taxes like Service Tax, Excise and VAT into a common

Goods and Service Tax by the year 2011. To achieve this objective, the rate of Central Excise

and Service Tax will be progressively altered and brought to a common rate. In budget

presented for 2008-2009 It was announced that all Small service providers whose turnover

does not exceed 1,000,000 need not pay service tax.

1. Wealth Tax Act, which has a regular history of being passed and repealed;

2. Service Tax, imposed under Finance Act, 1994, which taxes the provision of servicesprovided by service providers within India or services imported by Indian from

outside India;

3. Central Excise Act, 1944, which imposes a duty of excise on goods manufactured or

produced in India;

4. Customs Act, 1962, which imposes duties of customs, countervailing duties and anti-

dumping duties on goods imported in India;

5. Central Sales Tax, 1956, which imposes sales tax on goods sold in inter-state trade or

commerce in Indi sale of property situated within the State;

6. Entertainment taxes
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Now, Service Tax and Excise will be inclusive part of GST in due course of time.

Income tax in India

The government ofIndia imposes an income tax on taxable income of individuals, Hindu

Undivided Families (HUFs), companies, firms, co-operative societies and trusts (identified as

body of individuals and association of persons) and any other artificial person. Levy of tax is

separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961.

The Indian Income Tax Department is governed by the Central Board for Direct

Taxes (CBDT) and is part of the Department of Revenue under the Ministry of

Finance, Govt. of India. Income tax is a key source of funds that the government uses to fund

its activities and serve the public. There are close to 35 million income tax payers in India or

6 per cent of labour force.

History of Indian Income Tax

Income tax levels in India were very high during 1950-1980, in 1970-71 there were 11 tax

slabs with highest tax rate being 93.5% including surcharges. In 1973-74 highest rate was

97.5%. But to reduce tax evasion tax rates were reduced later on, by "1992-93" maximum tax

rates were reduced to 40%.

Types of taxes

Direct Tax:-Income tax, corporation tax on companys profits, property tax, capital

gains tax, wealth tax etc are examples of direct taxes.

Indirect Tax:- It is levied on the expenditure of a person. Excise duty, sales tax,

custom duties etc are examples of indirect taxes.

Personal Income Tax in India

Everyone whose income exceeds the maximum amount, which is not chargeable to the

income tax, is an assesses, and shall be chargeable to the income tax at the rate or rates

prescribed under the finance act for the relevant assessment year, shall be determined on

basis of his residential status.

Income tax is a tax payable, at the rate enacted by the Union Budget (Finance Act) for every

Assessment Year, on the Total Income earned in the Previous Year by every Person
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Some conditions

Residential Status

The three residential status, viz.,

Resident Ordinarily Residents In India

Under this category, person must be living in India at least 182 days during

previous year or must have been in India 365 days during 4 years preceding

previous year and 60 days in previous year. Ordinary residents are always taxable

on their income earned both in India and Abroad.

Resident but not Ordinarily Residents In India

Must have been a non-resident in India 9 out of 10 years preceding previous year

or have been in India in total 729 or less days out of last 7 years preceding the

previous year. Not residents are taxable in relation to income received in India or

income accrued or deemed to be accrued or arise in India and income from

business or profession controlled from India.

Non Residents In India(N.R.I)

Non Residents are exempt from tax if accrue or arise or deemed to be accrued or

arise outside India. Taxable if income is earned from business or profession

setting in India or having their head office in India.

HEADS OF INCOME

The total income of a person is divided into five heads:

Income from salaries,

Income from house and property,

Income from business and profession,

Income in the form of Capital gains, and

Income from other sources


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Income from Salary

All income received as salary under Employer-Employee relationship is taxed under this

head. Employers must withhold tax compulsorily, if income exceeds minimum exemption

limit, as Tax Deducted at Source (TDS), and provide their employees with a Form 16 which

shows the tax deductions and net paid income. In addition, the Form 16 will contain any other

deductions provided from salary such as:

1. Medical reimbursement: Up to 15,000 per year is tax free if supported by bills.

2. Transport allowance: Up to 800 per month (9,600 per year) is tax free if provided as

transport allowance. No bills are required for this amount.

3. Conveyance allowances tax exempt.

4. Professional taxes: Most states tax employment on a per-professional basis, usually a

slabbed amount based on gross income. Such taxes paid are deductible from income

tax.

5. House rent allowance: the least of the following is available as exemption

1.Actual HRA received

2.50%/40%(metro/non-metro) of basic salary

3.Rent paid minus 10% of 'salary'. basic Salary for this purpose is basic +DA

forming part +commission on sale on fixed rate.

The exemption for HRA u/s 10(13A) is the least of all the above three factors.

Meaning of salary

particulars Basic

salary

DAIf terms of

employment

provide &

forming part of

superannuation

benefits

Commission

at fixed %

of turnover

achieved by

employee

Any

other

DA

Any other

commission

Taxable

allowances

Bonus Any other

cash

emoluments

not in

nature of

perquisites

Exemption /Deduction in respect of:

Compensationunder VRS Yes No

House rent

allowance

Employers

contribution of

RPF

Gratuity:

Employee not

covered by

payment of

gratuity

Gratuity: Yes Yes No Yes No Yes
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Employee covered

by payment of

gratuity Act

Entertainment

allowance :to a

governmentemployee

Yes No

Valuation of perquisites

Accommodation: Yes No Yes Yes Yes Yes

Determining

salary limit of

specified

employee

Income under the head salary is exclusive of all benefits or amenities not provided

by way of monetary payment.

Income from House property

Income from House property is computed by taking into account what is called Gross Annual

Value of the property. The annual value (Annual value in case of a self occupied house is to

be taken as NIL. (However if there is more than one self occupied house then the annual

value of the other house/s is taxable.) From this, deduct Municipal Tax paid and you get the

Net Annual Value. From this Net Annual Value, deduct :

30% of Net value as repair cost (This is a mandatory deduction)

No other deduction available

Interest paid or payable on a housing loan against this house

In the case of a self occupied house interest paid or payable is subject to a maximum limit of

Rs,1,50,000 (if loan is taken on or after 1 April 1999 and construction is completed within 3

years) and Rs.30,000 (if the loan is taken before 1 April 1999). For l non self-occupied

homes, all interest is deductible, with no upper limits.

The balance is added to taxable income.

Gross annual value (GLV) Rs. Rs.

(a)Annual lettingvalue(ALV)

Xxx

(a)Actual annual

rent received

/receivable

Xxx

Whichever is higher, is GAV xxx

Less: municipal taxes paid

by the owner

Net annual value

xxx

xxx
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Income from Business or Profession

The income referred to in section 28, i.e., the incomes chargeable as "Income from Business

or Profession" shall be computed in accordance with the provisions contained in sections 30

to 43D. However, there are few more sections under this Chapter, viz., Sections 44 to 44DA

(except sections 44AA, 44AB & 44C), which contain the computation completely within

itself. Section 44C is a disallowance provision in the case non-residents. Section 44AA deals

with maintenance of books and section 44AB deals with audit of accounts.

In summary, the sections relating to computation of business income can be grouped as

under: -

1. Deductible Expenses - Sections 30 to 38 [except 37(2)].

2.

Inadmissible Expenses - Sections 37(2), 40, 40A, 43B & 44-C.3. Deemed Incomes - Sections 33AB, 33ABA, 33AC, 35A, 35ABB & 41.

4. Special Provisions - Sections 42 & 43D

5. Self-Coded Computations - Sections 44, 44A, 44AD, 44AE, 44AF, 44B, 44BB,

44BBA, 44BBB, 44-D & 44-DA.

The computation of income under the head "Profits and Gains of Business or Profession"

depends on the particulars and information available.[6]

If regular books of accounts are not maintained, then the computation would be as under: -

Income (including Deemed Incomes) chargeable as income under this head xxx Less:Expenses deductible (net of disallowances) under this head xxx Profits and Gains of Business

or Profession xxx

However, if regular books of accounts have been maintained and Profit and Loss Account has

been prepared, then the computation would be as under: -
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Income from Capital Gains

Transfer of capital assets results in capital gains. A Capital asset is defined under section

2(14) of the I.T. Act, 1961 as property of any kind held by an assesses such as real estate,

equity shares, bonds, jewellery, paintings, art etc. but does not include some items like any

stock-in-trade for businesses and personal effects. Transfer has been defined under section

2(47) to include sale, exchange, relinquishment of asset extinguishment of rights in an asset,etc. Certain transactions are not regarded as 'Transfer' under section 47.

For tax purposes, there are two types of capital assets: Long term and short term. Long term

asset is that which is held by a person for three years except in case of shares or mutual funds

which becomes long term just after one year of holding. Sale of such long term assets gives

rise to long term capital gains. There are different scheme of taxation of long term capital

gains. These are:

1. As per Section 10(38) of Income Tax Act, 1961 long term capital gains on shares or

securities or mutual funds on which Securities Transaction Tax (STT) has beendeducted and paid, no tax is payable. STT has been applied on all stock market

transactions since October 2004 but does not apply to off-market transactions and

company buybacks; therefore, the higher capital gains taxes will apply to such

transactions where STT is not paid.

2. In case of other shares and securities, person has an option to either index costs to

inflation and pay 20% of indexed gains, or pay 10% of non indexed gains. The

indexation rates are released by the I-T department each year.

3. In case of all other long term capital gains, indexation benefit is available and tax rate

is 20%.

All capital gains that are not long term are short term capital gains, which are taxed as such:
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Under section 111A, for shares or mutual funds where STT is paid, tax rate is 10% From

Asst Yr 2005-06 as per Finance Act 2004. For Asst Yr 2009-10 the tax rate is 15%.

In all other cases, it is part of gross total income and normal tax rate is applicable.

For companies abroad, the tax liability is 20% of such gains suitably indexed (since STT is

not paid).

Particulars Short term capital assets

Sale of

original shares

Sale of bonus

shares

Sales of land

Sale price, being full value of

considerationLESS: permissible deduction

1. Expenses in connection

with transfer

2. Cost of acquisitions

Short term capitals gain

Xxxxx

-(-)

_________

Xxxxx

(-)Nil

_________

Xxxxx

(-)(-)

________

Cost of acquisitions includes = purchase price +Breakage /legal exp./registration +exp.

In connection with purchase+ interest loan

advance forfeited.

Income from Other Sources

This is a residual head, under this head income which does not meet criteria to go to other

heads is taxed. There are also some specific incomes which are to be taxed under this head.

1. Income by way of Dividends

2. Income from horse races

3. Income from winning bull races

4.

Any amount received from key man insurance policy as donation.5. Income from shares (dividend other than Indian company)


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Particulars Winning from lottery, horse

race, crossword, puzzle, card

games or gambolling or betting

any other games of any sort.

Winning from owning and

maintaining race horses

participating in races

Rs. Rs.

Gross amount of winning Xxx Xxx

Less: any expenditure incurred Not deductible Xxx

(revenue expenditure incurred is

allowed)

Taxable income Xxx Xxx

Gross up winning: it is always gross winning which is taxable. Where amount of winning is

paid after deduction of tax at source, it is to be grossed up because the amount of taxdeducted at sources is a part of income of the assesses. Amount of winning is grossed up in

the following manner.

Net amount of winning X100

______________________

100Rates of TDS

Deduction

While exemptions is on income some deduction in calculation of taxable income is allowed

for certain payments.

Section 80C Deductions

Section 80C of the Income Tax Act allows certain investments and expenditure to be

deducted from total income up to the maximum of 1 lac. The total limit under this section is

100,000 ) which can be any combination of the below:

Contribution to Provident Fund orPublic Provident Fund. PPF provides 8.8% return

compounded annually. Maximum limit to contribute in it is 100,000 for each year. It is a

long term investment with complete withdrawal not possible till 15 years though partial

withdrawal is possible after 5 years. The interest earned on PPF investments is not

taxable.

Besides, there is employee provident fund which is deducted from the salary of the person.

This is about 10% to 12% of the BASIC salary component. Recent changes are being

discussed regarding reducing the instances of withdrawal from EPF especially when one

changes the job. EPF has the option of full settlement on leaving the job, taking VRS,
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retirement after 58. It also has options of withdrawal for certain expenses related to home,

marriage or medical. EPF contribution includes 12% of basic salary from employee and

employer. It is distributed in ratio of 8.33:3.67 in Pension fund and Providend fund

Payment oflife insurancepremium. It is allowed on premium paid on self, spouse andchildren even if they are not dependent on father or mother.

Investment in pension Plans. National Pension Scheme is meant to save money for the

post retirement which invests money in different combination of equity and debt.

depending upon age up to 50% can go in equity. Annuity payable after retirement is

dependent upon age. NPS has six fund managers. Individual can make minimum

contribution of Rs6000/- . It has 22 point of purchase (banks).

Investment in Equity Linked Savings schemes (ELSS) of mutual funds. Among other

investment opportunities, ELSS has the least lock-in period of 3 years. However, one

should note that after the Direct Tax Code is in place, ELSS will no longer be aninvestment for 80C deduction.

Investment in National Savings Certificates (interest of past NSCs is reinvested every

year and can be added to the Section 80 limit)

Tax saving Fixed Deposits provided by banks for a tenure of 5 years. Interest is also

taxable.

Payments towards principal repayment of housing loans. Also any registration fee or

stamp duty paid.

Payments towards tuition fees for children to any school or college or university or

similar institution (Only for 2 children) Post office investments

The investment can be from any source and not necessarily from income chargeable to tax.

Section 80CCF: Investment in Infrastructure Bonds

From April, 1 2011, a maximum of20,000 is deductible under section 80CCF provided that

amount is invested in infrastructure bonds. This is in addition to the 100,000 deduction

allowed under Section 80C. However this deduction has not been extended to Financial year

2012-13. Omitted with effect from F. Y. 2012-13.

Section 80D: Medical Insurance Premiums

Health insurance, popularly known as Med claim Policies, provides a deduction of up to

35,000.00 (15,000.00 for premium payments towards policies on self, spouse and children

and 15,000.00 for premium payment towards non-senior citizen dependent parents or

20,000.00 for premium payment towards senior citizen dependent). This deduction is in

addition to 1,00,000 savings under IT deductions clause 80C. For consideration under a

senior citizen category, the incumbent's age should be 60 years during any part of the current

fiscal, e.g. for the fiscal year 2010-11, the incumbent should already be 60 as on March 31,

2011), This deduction is also applicable to the cheques paid by proprietor firm.
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Interest on Housing Loans Section

For self occupied properties, interest paid on a housing loan up to Rs 150,000 per year is

exempt from tax. This deduction is in addition to the deductions under sections 80C, 80CCF

and 80D. However, this is only applicable for a residence constructed within three financial

years after the loan is taken and also the loan if taken after April 1, 1999.

If the house is not occupied due to employment, the house will be considered self occupied.

For let out properties, the entire interest paid is deductible under section 24 of the Income

Tax act. However, the rent is to be shown as income from such properties. 30% of rent

received and municipal taxes paid are available for deduction of tax.

The losses from all properties shall be allowed to be adjusted against salary income at the

source itself. Therefore, refund claims of T.D.S. deducted in excess, on this count, will no

more be necessary.

Section 80DDB : Deduction in respect of Medical Treatment, etc

Deduction is allowed to resident individual or HUF in respect of expenditure actually during

the PY incurred for the medical treatment of specified disease or ailment as specified in the

rules 11DD for himself or a dependent relative or a member of a HUF.

Refund Status

State Bank of India (SBI) is the refund banker to the Indian Income Tax Department (ITD).

Your tax refund details are sent to SBI, by the Income tax department. Then SBI will process

the refund, and send you the refund intimation. While filing your return you can choose any

one of the two Refund modes ECS or Paper(cheque). The refund status can be checked online

at the NSDL site

Procedure to payment tax

With the help of internet having to pay the tax, needful documents to pay your tax are

following:

GRID card

Online Banking

Credit Card

PAN Card

TAN Card

Procedure to pay with the help of online banking

1.

Online your online banking either personal or corporate.2. Then select the e-tax option, where displayed on the page.
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3. Then select your e-tax type either state government tax or direct tax or indirect

tax.

If you are paying the excise and service tax under indirect tax then, just follow that

CBEC has changed the process for payment of Excise & Service Tax. Login

tohttps://cbec.nsdl.com and select E-Payment (Excise & Service Tax). Key in your Assessee Code,

select the type of payment, accounting codes and select State Bank of India from the list of banks for

payment.

If you are paying the customs under indirect tax then just follow that

1. In a new browser window enter the URL,https://epay.icegate.gov.in(You can alsoclick the Indirect Taxes (Customs) hyperlink in the OnlineSBI eTax banner in the

Home Page). You are displayed Customs e-payment Gateway.2. Select e-payment under services.

3. Provide your Import-Export code or the login credentials given by ICEGATE.

4. Select e-Payment. You are displayed the list of your unpaid challans.

5. Click on Pay against the challan you wish to make a payment for.

6. Select State Bank of India from the list of Banks. You will be redirected to the

OnlineSBI login page.

7. Enter your Internet Banking user ID and password to login.

8. Proceed to select the account from which you wish to pay tax.

9. On successful processing of your transaction, you are provided a link to print the e-

receipt for the payment.

10.Once your transaction is complete, you are redirected to ICEGATE website. If the

payment was successfully made for the challan, it will not appear in the list of

pending challans in the ICEGATE site.

If you find the challan in the list of pending challans even after making the payment, please

click on Verify link appearing against the challan. System will update the status and challan

will disappear from the list of pending challans. You can safely repeat this step, if the issue is

not resolved. If you are a retail customer you can also generate an e-receipt subsequently in

OnlineSBI using the 'Status Enquiry' link in the 'Enquiries' tab. The same is available for

corporates in the 'Query by Echeque/Account' link in the 'Reports' tab.

If you are paying the direct tax just follow that

1. In a new browser window enter the

URL,https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp. (You can

also click the Direct Taxes OLTAS hyperlink in the OnlineSBI Home page

banner) You are displayed Tax Information Network webpage of Income Tax

Department.

2. Click the challan Number applicable for your payment.

3. Enter the PAN, name, address, assessment year, major head, minor head, typeof payment etc.
https://www.onlinesbi.com/retail/indirecttaxdisplay.htmhttps://www.onlinesbi.com/retail/indirecttaxdisplay.htmhttps://www.onlinesbi.com/retail/indirecttaxdisplay.htmhttps://www.onlinesbi.com/retail/indirecttaxdisplay.htmhttps://www.onlinesbi.com/retail/indirecttaxdisplay.htmhttps://www.onlinesbi.com/retail/directtaxdisplay.htmhttps://www.onlinesbi.com/retail/directtaxdisplay.htmhttps://www.onlinesbi.com/retail/directtaxdisplay.htmhttps://www.onlinesbi.com/retail/directtaxdisplay.htmhttps://www.onlinesbi.com/retail/indirecttaxdisplay.htmhttps://www.onlinesbi.com/retail/indirecttaxdisplay.htm


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4. Select State Bank of India from the list of banks. You will be redirected toOnline SBI login page.

5. Enter your Internet Banking User ID and password. If your credentials are

valid, you can proceed to select the account from which you wish to pay tax.

6. On successful processing of your transaction, you are provided a link to print

the e-receipt for this payment.

If you are a retail customer you can also generate an e-receipt subsequently in Online SBI

using the 'Status Enquiry' link in the 'Enquiries' tab. The same is available for corporate in the

'Query by E-cheque/Account' link in the 'Reports' tab.

Advantages and disadvantages of taxation cum e-taxation

Advantages :-

Taxes in India are levied by the central government and the state governments.

In 2010-11, with the help of internet, either partially or directly the gross tax

collection amounted to 7.92 trillion, with direct tax and indirect tax contributing 56%

and 44% respectively.

It is the better source to collect the revenue

With the help of taxation, the government comes back to black money.

All department taxes are separately in well manner.

Provide the demo of payment on the taxation departmental website. With the help of

demo, we can easily understand and operate to e-payment.

For the consumer help, providing the toll free number18001801961.

Most of bank provide that facility and to know about the e payment.

The quote of e-filing of your tax return is show your contribution to the nation.

E taxation is the way to pay the tax is very fast and quick.

All type of documents is available on the internet and with the help of e-taxation.

With the help of e-taxation, personal and corporate tax make to easy payment, it

reduces the processing and difficulties.

E-taxation filling time is in some extension than general /manual filling.

With the help of online, we can get the any notice and taxation elaboration in better

manner.


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Now available 24x 7 tax paying convenience from anywhere through ATMs. eg. Like

HDFC Bank, Union Bank, BOB, Axis Bank, Canara Bank, BOM, PNB, Central Bank

of India etc.

Disadvantages and barrier of e-taxation:-

Internet is the main barrier for the e-taxation.

In many places, there are not proper advices of bank for the e-taxation.

Lack of understanding of Indian civilian but new generation is accepting.

They have feared to wrong happened by the online taxation.

It creates the generation gap between new and old men.

In many places, people dont know about the e-taxation.

Only those people can pay e-tax, who carries the online banking.

Documents

E-taxation Group 4