The last day to file your income tax return (ITR) for Assessment Year 2023-24 is approaching nearer as the deadline to file ITR for the financial year 2022-23 is July 31. In a new of its kind, fintech company PhonePe, launched its ‘Income Tax Payment’ app feature on Monday (July 24), the day which marks Income Tax Day or 'Aaykar Diwas' in India. The introduction of this feature by PhonePe is seen as a big relief to taxpayers who find the income tax submission process cumbersome.
The newly introduced 'Income Tax Payment' feature by digital payments company PhonePe on its app will allow taxpayers, be it individuals or businesses easily pay self-assessment and advance tax directly from within the PhonePe app. And all this can be done without logging in to the IT portal. Amid the growing traffic on the income tax website, as the deadline moves closer, the timing of the launch of this feature is opportune as the feature will not only provide an alternative to tax filing but also reduce the load on the website.
To enable this feature, PhonePe has partnered with PayMate, a digital B2B payments and service provider. Under this facility, taxpayers can pay their income tax through a credit card or UPI. If the payment is made via credit card payments, taxpayers will receive a 45-day interest-free period and reward points on their tax payments. Reward policy is different for different banks.
Once the payment is successful, users will receive a Unique Transaction Reference (UTR) number that will serve as proof of tax payment. The UTR will be available within 24 hours, while the challan is created within two working days.
How to pay income tax on PhonePe App Online
-Download and install the PhonePe app
-Open the PhonePe app on your iPhone or Android smartphone and tap on the ‘Income Tax’ icon
-Select the type of tax you want to pay, the assessment year
- Submit your PAN Card details
-Enter the total tax amount and make payment
-After the payment is successful, the amount will be credited to the tax portal within two working days.