e-payment of direct taxes mandatory for corporates
March, 19th 2008
For the corporate sector in the country, electronic payment of direct taxes has become mandatory from April 1. This payment norm would also apply to tax audit assessees.
Official sources said that such category of taxpayers can make electronic payment through the Internet banking facility offered by any of the authorised banks. They also have the option of using credit or debit cards for making the e-payment.
The Finance Ministry has now issued the relevant executive order to make e-payment of direct taxes mandatory for corporates and tax audit assessees with effect from April 1. As of today, 22 banks are authorised to offer e-payment facility through Internet banking accounts.
Electronic payment is seen as a cleaner way to make payment and one could avoid paper work also. Currently, electronic payment is optional for income tax payers. This optional scheme was introduced in 2004.
Already assessees with Net banking accounts make their tax payments through the e-payment route. In fiscal 2006-07, the Government collected less than one per cent of its total direct tax collections of about Rs 2,29,272 crore through the e-payment mode.
For fiscal 2007-08, the Centre has pegged the revised estimate for direct taxes at about Rs 3,04,000 crore.