What Is e-Pay Tax Facility And How Can You Use It For ITR Filing In 2025

For most taxpayers, the beginning of a new fiscal year is more than a turn in the calendar since it also comes with the sense of urgency to sort out their tax returns. This includes making sure that the payments are correct, and there are no mistakes in the compliance.

There is an easy way to take care of such tax payments with ‘e-pay tax’ facility. This feature was introduced by the Income Tax Department (I-T dept) to make tax compliance easy for individuals and businesses by making the process quick and secure - without logging into the portal.

Let’s understand the functionality of this facility in a simple way and know how it can help you in the 2025 tax season.

What is e-Pay Tax facility?

Think of this utility as a virtual tax counter, wherein instead of visiting a bank, you can make tax payments from your home. This can be done using net banking, debit/credit cards, UPI, NEFT/RTGS, or other payment gateways.

Once the payment is successfully made, your tax records are updated automatically, and you get an instant receipt. This provides you a quick, transparent way to manage finances when it comes to tax payments.

Who can use this facility?

According to income tax rules, electronic payment of taxes is mandatory for the following:

- All corporate taxpayers

- Individuals and businesses covered under Section 44AB (meaning those individuals who need to get their accounts audited)

However, even if you are not mandated to use the electronic facility, you can still choose to pay online.

What documents/IDs do you need?

To use the e-pay facility, here are a few IDs/documents you should keep ready:

- Your PAN number

- Active Aadhaar-linked mobile number (where you will receive the message for OTP verification)

Moreover, you must have an account i a bank authorised to process tax payments. To make the payments, ensure that you have an active internet banking account, or debit/credit cards or UPI (which is activated for the concerned bank account).

Here’s how to use the e-Pay Tax facility (without logging in):

Step 1: Visit the official website of the Income Tax Department (www.incometax.gov.in)

Here, on the homepage you will find an option that says ‘e-Pay Tax’ under the ‘Quick Links’ section.

Step 2: Enter your PAN (twice) and mobile number, which is linked to your Aadhaar.

After this, you will receive a 6-digit OTP; enter the same to continue.

Step 3: Now, you should select the type of payment. For instance, if you are filing ITR for FY (2025-25) ( assessment year AY 2024-25), then choose ‘Income Tax’ and go aheaad.

Step 4: Select ‘Self-assessment Tax (300) and pick the assessment year from the dropdown column.

Step 5: Here, enter the tax amount based on your calculations. If you are unsure, make use of online platforms or consult an expert for the right amount.

Step 6: Choose the payment mode you prefer, such as either Net banking, debit card, UPI, NEFT/RTGS, or even over-the-counter (if your bank supports it).

Step 7: In this step, you have to carefully preview the challan. Check that all information such as financial year, amount, payment mode is correct.

Step 8: Once satisfied that everything is correct, tick the box to agree to the terms and submit the payment to your bank.

Step 9: You will get a receipt with the BSR code and Challan number, download it. This will come in handy while putting in tax payment details when you will file your income tax return (ITR).

If you are logged in to the income tax portal, here’s how to proceed:

Step 1: Log into the Income Tax e-filing portal with your PAN and password.

Step 2: Go to e-file, ePay Tax option - click on New Payment.

Step 3: After this you can follow the same processes as explained from Step 3 to 9.

What Next After Filing e-Pay Tax?

Now, when you sit down to file your ITR, you will be asked to declare taxes already paid. This is where your Challan Serial Number and BSR Code come in.

Once added, you can move ahead with e-filing and e-verification of your income tax return filing.