income tax

Published on 5 April 2025

Complete Guide to Authorized Banks for E-Tax Payments in India

Introduction

It may be difficult to pay taxes online if your preferred bank is not listed on the Income Tax Portal. The new update and addition of more banks make it essential that taxpayers understand which banks are supported and how to efficiently continue with the payment process. This handbook provides up-to-date information, an in-depth step-by-step process, and expert tips for an efficient e-tax payment process.

New List of Authorized Banks for E-Tax Payments (As of March 2025)

Income Tax Department expanded its list to 30 banks authorized to pay e-taxes through the e-Filing Portal's e-Pay Tax service, so it is easier for taxpayers all over India. The list is renewed from time to time; therefore, verify your bank status before proceeding with any payments.

Existing Authorized Banks:

  • Axis Bank (Migrated)
  • Bandhan Bank (New)
  • Bank of Baroda (Migrated)
  • Bank of India (Migrated)
  • Bank of Maharashtra (Migrated)
  • Canara Bank (Migrated)
  • Central Bank of India (Migrated)
  • City Union Bank (New)
  • DCB Bank (New)
  • Federal Bank (New)
  • HDFC Bank (Migrated)
  • ICICI Bank (Migrated)
  • IDBI Bank (Migrated)
  • Indian Bank (Migrated)
  • Indian Overseas Bank (Migrated)
  • IndusInd Bank (New)
  • Jammu & Kashmir Bank (Migrated)
  • Karur Vysya Bank (New)
  • Kotak Mahindra Bank (New)
  • Karnataka Bank (New)
  • Punjab National Bank (Migrated)
  • Punjab & Sind Bank (Migrated)
  • RBL Bank (New)
  • State Bank of India (Migrated)
  • South Indian Bank (New)
  • UCO Bank (Migrated)
  • Union Bank (Migrated)
  • Dhanlaxmi Bank (New)
  • IDFC First Bank (New)
  • Tamilnad Mercantile Bank Limited (New; added March 2025)

Note: If your bank is not mentioned above, you cannot use its net banking for payment of direct taxes on the portal. However, you may use a relative's or associate's account from an approved bank if necessary.

Step-by-Step Guide to Payment of Income Tax Online

Option 1: Payment after Logging In to the Income Tax e-Filing Portal

  1. Login to the Portal:

  1. Access e-Pay Tax:

    • Visit 'e-File' > 'e-Pay Tax' from your dashboard.

  2. Initiate New Payment:

    • Select 'New Payment' and choose the applicable tax type (e.g., Advance Tax, Self-Assessment Tax).

  3. Enter Tax Details:

  • Provide the assessment year, payment category, and tax amount breakup (basic tax, surcharge, cess, interest, penalty, etc.).
  1. Choose Payment Method:
  • Choose 'Net Banking' and select your bank from the list of participating banks. You can also choose Debit Card, UPI, Payment Gateway, or NEFT/RTGS.
  1. Check & Pay:
  • Review all the information, accept the terms and conditions, and click 'Pay Now'. You will be redirected to your bank's secure page to make the payment.
  1. Save Challan:
  • After successful payment, save the Challan Receipt (with unique CRN) as a record. You will be informed through email and SMS as well.

Option 2: Pay Without Logging In (Pre-Login Service)

  1. Go to e-Pay Tax Page:
  • Go to e-Filing Portal and click 'e-Pay Tax' from 'Quick Links'.
  1. Provide PAN and Mobile Number:
  • Provide your PAN and registered mobile number. A 6-digit OTP will be delivered for verification.

  1. OTP Verification:

    • Provide the OTP and check your details (masked PAN/name will be displayed).

  2. Select Tax Category:

  • Choose the relevant type of tax payment and assessment year.

  1. Enter Tax Amount:

    • Provide the tax detail and amount due.

  2. Choose Payment Mode:

  • Click on 'Net Banking' or other preferred option and select your bank from the approved list.

  1. Verify & Pay:

    • Check everything is in order, agree to terms, and pay.

  2. Download Challan:

  • Save the Challan Receipt for your records. Payment status and history can be checked under ‘Payment History’ after logging in.

Additional Payment Modes and Key Details

  • Payment Gateway: In case your bank does not have direct net banking authorization, you can make payments through payment gateways by using credit cards, debit cards, or UPI, although there may be transaction fees.
  • Offline Payment: For offline, online Challan can be made and paid at the bank counter (available for certain banks only).
  • Refunds & Reversals: Refund or reversal of tax payment is not handled by the e-Filing portal. The over-payment has to be claimed as a tax credit while submitting your ITR for the respective assessment year.

Checklist Before Making E-Tax Payment

  • Have your PAN/TAN and registered mobile number with you.
  • Ensure your bank account is in an authorized bank.
  • Select the correct assessment year and tax type (e.g., Advance Tax, Self-Assessment Tax).
  • Double-check all tax details and payment amounts.
  • Download and save the Challan Receipt (with CRN) securely as soon as payment has been made.
  • Make sure your registered email and mobile number on the e-Filing portal are up-to-date for timely confirmations.

Common Errors to Avoid

  • Failure to choose the correct assessment year or type of tax may delay payment crediting.
  • Processing with an unauthorized bank may result in unsuccessful transactions.
  • Failing to save the Challan Receipt might make it difficult to prove payment while conducting assessments or audits.
  • Incorrect PAN/TAN entry could divert the payment to the wrong account.

Example

For instance, Priya, a salaried employee of Bengaluru, needs to make the payment of self-assessment tax for FY 2024-25. Being a customer of Tamilnad Mercantile Bank Limited, recently added to the list of approved banks in March 2025, she uses the e-Filing Portal, selects 'e-Pay Tax', selects her bank from the options, and pays online. Priya subsequently downloads her Challan Receipt and receives instant SMS and email intimation, thereby ensuring her tax compliance with ease.

Frequently Asked Questions (FAQs)

  • What if my bank is unavailable? You need to utilize an account from an approved bank or remit through payment gateway using other channels, such as credit card or UPI.

  • How do I get confirmation of successful payment? Payment status and Challan Receipt will be visible in the 'Payment History' page after login. You would also receive SMS/email confirmation.

  • Is it possible for me to pay tax on behalf of someone else? Yes, if the PAN/TAN and payment information are correct and the payment is made from a valid bank account.