Tax payers can pay income tax through any bank account
July, 24th 2008
Tax payers can now deposit income tax from the bank accounts of any person in addition to credit and debit cards, the Central Board of Direct Taxes (CBDT) said. The decision has been taken following representation from certain domestic and foreign taxpayers, who said they were facing difficulties in complying with the mandatory e-payment of taxes.
Earlier, the CBDT had made it mandatory for companies, and businesses and professionals covered under audited results, to electronically pay taxes with effect from April this year.
"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," said a CBDT notification.
Tax authorities said that it was not necessary for taxpayers to pay taxes from their own accounts in an authorised bank. Further, payment of any amount by a deductor by way of tax deducted at source (TDS) or tax collected at source (TCS) would also be accepted.
Foreign assesses said since they do not have a presence in India, they were unable to meet the know-your-customer norms of the banks and thus open bank accounts and make payment of taxes, through the electronic mode.
The tax authorities said tax payers could pay taxes electronically through internet banking facility of authorised bank, credit cards or debit cards as well.
The sources said the department has also received complaints from number of domestic companies that they were were facing difficulties in availing internet banking facilities of the authorised banks. PTI