As the deadline to file Income Tax Returns (ITR) for the financial year 2022-23 approaches, Indian digital payments company PhonePe has come to the rescue with a new feature called ‘Income Tax Payment’ on its app. This latest addition allows taxpayers, including both individuals and businesses, to conveniently pay their self-assessment and advance tax directly from within the PhonePe app. The feature aims to streamline the tax payment process and provide a seamless experience for users.

The Importance of Timely Tax Payments

With the last date to file and pay ITR being July 31, taxpayers are busy assessing their yearly income and finances. The Indian government has made it clear that the deadline will not be extended beyond this date. To help taxpayers fulfill their tax obligations in a hassle-free manner, PhonePe has partnered with PayMate, a digital B2B payments and service provider, to enable this feature.

Benefits of the ‘Income Tax Payment’ Feature

The new feature on PhonePe allows users to pay their taxes using either their credit card or UPI. For credit card payments, users can enjoy a 45-day interest-free period and even earn reward points based on their respective banks, adding incentives to timely tax payments.

It’s important to note that while users can conveniently pay their taxes through PhonePe, this feature does not include the ability to file taxes. Taxpayers will still need to follow the standard filing process to complete their ITR submission.

A Simple 3-Step Tax Payment Process

To pay income tax on PhonePe, users can follow these simple steps:

Open the PhonePe app on their iPhone or Android smartphone.

Find and tap on the ‘Income tax’ icon on the homepage.

Select the type of tax to be paid, the assessment year, and provide PAN card details.

Enter the total tax amount and choose the preferred mode of payment.

After a successful payment, the amount will be credited to the tax portal within two working days.

Acknowledgment and Tax Payment Challan

Upon making the payment, taxpayers will receive an acknowledgement in the form of a Unique Transaction Reference (UTR) number within one working day. Additionally, the tax payment challan will be made available to users within two working days, ensuring a smooth and efficient tax payment experience.

A Hassle-free Tax Payment Experience

Niharika Saigal, Head of Bill Payments and Recharge Business at PhonePe, expressed excitement about the new feature, emphasizing the company’s commitment to enhancing user offerings. Saigal highlighted that paying taxes can often be a complex and time-consuming task, and PhonePe’s new feature simplifies the process, providing a convenient and secure way for users to fulfill their tax obligations.

With this innovative feature, PhonePe aims to transform the way users pay taxes, making the process both simple and easy. So, if you’re an individual or business taxpayer, don’t miss the opportunity to leverage PhonePe’s ‘Income Tax Payment‘ feature to streamline your tax payments and meet the deadline with ease.