If you’ve calculated your tax liability and still have some tax left to pay before filing your Income Tax Return (ITR), you don’t necessarily need to do it online. The Income Tax Department allows taxpayers to pay self-assessment tax through designated bank branches as well.
Knowing the process can help you avoid filing delays, interest charges, and compliance issues.
Here’s a step-by-step guide to paying self-assessment tax at a bank branch before submitting your ITR.
Prerequisites for using the self-assessment tax service
Before or after logging into the e-Filing portal, taxpayers can pay their taxes at the bank branch.
A taxpayer who is a company or an individual (not a company) to whom the provisions of section 44AB apply under the Income Tax rules is not permitted to choose the self-assessment tax option.
To make a payment, a signed copy of the Challan Form and the payment method—cash (up to Rs. 10,000), cheque or a demand draft—must be submitted to the authorized bank branch.
No transaction charge is applicable for using this service.
Taxpayers must have a valid PAN or TAN in order to use the pre-login method, and they must have enrolled on the e-Filing portal in order to use the post-login option.
Only after establishing a CRN using the e-Pay Tax service on the e-Filing portal can this feature be used by the eligible taxpayers.
Step-by-step guide to pay self-assessment tax at a bank branch
All taxpayers can use the “Pay at Bank Counter” option for tax payment via the e-Filing portal at http://www.incometax.gov.in. Using this service, you can generate the Challan Form (CRN) and pay tax over the counter at the bank of your choice using cash, cheques, or demand drafts.
Log in to the e-Filing portal and, post login steps are completed, click e-File > e-Pay Tax page, you will be navigated to the e-Pay Tax.
To start the online tax payment, select the New Payment option on the e-Pay Tax page.
Click “Proceed” on a tax payment option that applies to you on the New Payment page.
Once you’ve chosen the relevant Tax Payment tile, choose Assessment Year, Minor Head, and enter any other relevant details, then click “Continue”.
Click “Continue after adding the details of the full tax payment amount on the “Add Tax Breakup Details” page.
Choose the “Pay at Bank Counter” option on the “Select Payment Mode” page, then choose your preferred payment mode, choose the Bank Name from the list and click on ‘Continue’.
After verifying all the details on the ‘Preview’ and ‘Download Challan Form’ page, click on ‘Continue’ and after successful verification, a Challan Form will be generated.
To make the payment and complete the self-assessment process, print the Challan Form (CRN) and go to any branch of the chosen bank.
You will get a confirmation email and an SMS after a successful payment.
After logging in, the Payment History tab on the e-Pay Tax page provides the payment details and Challan Receipt, which can be used for future reference.
Who is most likely to need to pay self-assessment tax instead of relying solely on TDS?
Self-assessment tax refers to the assessee correctly calculating the taxable income and any applicable taxes or interest before filing the income tax return (ITR), according to the income tax rules.
Self-assessment tax is generally payable when the total tax liability exceeds the taxes already paid through TDS, TCS, advance tax, or relief credits. According to Pranav Sai S, Tax Expert at ClearTax, this commonly applies to:
Salaried individuals with additional income such as interest, rental income or capital gains where adequate TDS has not been deducted.
Freelancers, consultants, and professionals with insufficient TDS deductions.
Individuals who earn income from multiple employers during the financial year.
Taxpayers with capital gains from shares, mutual funds or property transactions.
Individuals whose actual tax liability increases due to the reporting of all income at the time of ITR filing.
Which banks are authorised to accept self-assessment tax payments over the counter, and are there any restrictions?
Self-assessment tax can be paid over the counter at authorised bank branches integrated with the Income Tax Department’s e-Pay Tax (TIN 2.0) system.
According to the Income Tax Department, major authorised banks include Axis Bank, Bandhan Bank, Bank Of Baroda, Bank Of India, Canara Bank, Central Bank Of India, City Union Bank Limited, DCB Bank, Federal Bank, HDFC Bank, ICICI Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, IndusInd Bank, Jammu And Kashmir Bank Limited, Karur Vysya Bank, Kotak Mahindra Bank, Bank Of Maharashtra, Punjab National Bank, Punjab & Sindh Bank, RBI, RBL Bank Ltd., South Indian Bank, State Bank of India, UCO Bank, and Union Bank of India.
What documents and details should taxpayers carry when visiting a bank branch?
Before visiting the bank, taxpayers should keep the following ready:
● PAN card or PAN details.
● Completed Challan ITNS 280.
● Assessment Year for which tax is being paid.
● Correct tax payment type (Self-Assessment Tax – Code 300).
● Mobile number and email ID for communication, if required.
● Cheque, demand draft or cash (within permissible limits).
Taxpayers should carefully verify all details before submitting the challan since errors may delay or affect the tax credit.
How should taxpayers report the challan details in their ITR?
Once the payment is made, taxpayers should preserve the challan counterfoil or acknowledgement issued by the bank. Pranav Sai S says, while filing the ITR, they should accurately enter:
● BSR Code of the bank branch.
● Challan Serial Number.
● Date of tax payment.
● Amount paid.
Any mismatch in these particulars may result in the tax credit not reflecting correctly, potentially leading to tax demands or delayed processing of the return.
If self-assessment tax is paid after the due date, how is interest under Sections 234A, 234B and 234C calculated?
Interest liability depends on the reason for the delay:
● Section 234A: Applicable when the ITR is filed after the due date, and tax remains unpaid. Interest is generally levied at 1% per month or part thereof on the outstanding tax.
● Section 234B: Applicable where advance tax paid is less than 90% of the assessed tax. Interest is generally charged at 1% per month from 1 April of the assessment year until the tax is paid.
● Section 234C: Applicable where taxpayers fail to pay the required advance tax instalments during the financial year. Interest is calculated separately for each missed or short-paid instalment.
The Income Tax utility generally computes these interest amounts automatically based on the taxpayer’s income and tax payments.
Are there any transaction limits or timing restrictions for paying self-assessment tax at bank branches?
Cash payments are generally restricted to Rs. 10,000 per challan. Larger payments usually need to be made through cheque, demand draft or electronic modes.
“Further, offline tax collection is subject to the bank branch’s working days and banking hours. Taxpayers making payments close to the ITR filing deadline should avoid waiting until the last day, as bank timings and cheque realisation could affect timely credit,” commented Pranav Sai S.
What are the most common mistakes taxpayers make while filling Challan ITNS 280?
Some of the most frequent errors include:
Entering an incorrect PAN.
Selecting the wrong Assessment Year.
Choosing the wrong tax payment type instead of Self-Assessment Tax (Code 300).
Mentioning an incorrect amount.
Incorrectly entering challan details while filing the ITR.
Not retaining the stamped challan or payment acknowledgement.
Taxpayers should carefully cross-check every field before making the payment and reconcile the challan details with their Annual Information Statement (AIS) and tax records before filing the return. This helps ensure seamless tax credit and reduces the chances of receiving avoidable notices from the Income Tax Department.
Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Tax laws and regimes are subject to frequent changes by the government. Readers should verify details with official Income Tax Department notifications or consult a Chartered Accountant before making any financial decisions.
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