Income Tax Department notified a New Feature of Pay Later on Income Tax e-Filing Website

The Income Tax Department has added a new feature to the income tax e-filing website that allows people to pay their taxes later. This means that an individual can continue to submit ITR without first paying any owed income taxes. Once the ITR is submitted, the income tax amount can be paid, subject to certain criteria. Previously, the ITR could only be submitted after the taxes were paid.

There are certain things an individual needs to keep in mind while using the ‘pay later’ option. Once you select this option while filing ITR, firstly, it will say ‘You may be considered as assessee in default’. Secondly, it will say ‘You may be liable to pay interest on tax payable.

Once you select this option while filing ITR, firstly, it will say ‘You may be considered as assessee in default’. Secondly, it will say ‘You may be liable to pay interest on tax payable.

Following the processing of the ITR, an intimation notice would be sent to the individual, according to the income tax department helpdesk representative. This notification will inform you that you owe money in taxes and that you should pay it as soon as possible. Following that, an individual will have 30 days to pay income tax liabilities with no penalties or interest. If the tax dues are not paid within 30 days, penal interest will be assessed.

As a result, 1% penal interest will be levied on tax arrears. If tax dues are not paid within 30 days, 1% penal interest will be charged.

If the ITR remains faulty beyond the 15-day deadline, it will be regarded an invalid return, and additional requirements will apply as if the taxpayer did not file the return, in addition to the negative consequences of non-payment of self-assessment tax.

Use of Pay Later Option to pay Income Tax

When a person files his or her ITR, the pay later option will display. The method for using this option is simple and may be accomplished by following the instructions given below:

Step 1: Go to Income tax E-filing portal and login into your account using your user ID (PAN or Aadhaar) and password.

Step 2: After logged in, click on the ‘e-file’ option, select ‘income tax return’, and then select ‘file income tax return’.

Step 3: Once you’ve entered all of the necessary information about your income and deductions, the income tax site will automatically determine if you owe any additional taxes. You must authenticate your entire tax payment based on the ITR filed here.

Step 4: On this page, you will get a summary of the specifics of how much income tax you must pay.

Step 5: If you agree to the increased tax liability, you can choose either the ‘Pay Later’ or ‘Pay Now’ option.

Step 6: You can file your ITR without paying income tax if you use the ‘Pay Later’ option here.

Step 7: You will be able to file your ITR once you have picked the pay later option. Once your ITR has been filed, make sure to check it using one of the six choices given.

Pay Taxes Later

After filing the ITR, there are two methods to pay income tax dues if you used the pay later option.

• Using the e-pay tax method
• Making income tax payment after receiving a tax demand notice.

e-pay tax method: Once you have successfully submitted the ITR, you can use the e-pay tax option to settle any outstanding tax liabilities. If income tax is paid before the tax demand notice is sent, no penal interest is likely to be assessed.

Tax payment after receiving tax demand notice: The tax demand notice will be issued after the ITR has been processed.