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Now pay income tax through ATMs!

Forget the never-ending forms and the paperwork, be ready to pay your taxes at your nearest ATM

The government has recently come up with a convenient way to pay your income taxes. Just walk over to the nearest ATM, pay your taxes and you are done. You don't need to fill lengthy forms or stand in queues.

It will be available 24x7 and is also saves paper. Currently the scheme has been launched to Union Bank of India customers but it will be extended to other banks soon.

How does it work

As a debit card holder, you will register at the bank's website

This site is in turn linked to the National Securities Depositories Ltd, which will help validate the permanent account number (PAN) of individuals and the Tax Deduction Account Number (TAN) provided to taxpayers.

On successful registration you can go to the ATM (currently Union Bank ATM only) and access Income Tax menu

It will display his PAN number and ask for the tax amount that is to be paid along with item-wise details of any other amount the assessee may want to include in the tax payment.

Select the relevant challan number and amount of tax and interest amount (if any)

On confirmation, the tax amount will be debited from the customer's account and the ATM will generate a receipt with a special number. After 24 hours, customers can log on to the bank's website, submit the special number and print a challan.

Don't confuse tax payment with tax returns

Individuals can make payments related to income tax, advance tax, self-assessment tax. If all your taxes are being paid through TDS and you don't have anymore to pay then you need not worry it. A lot of people have to pay self-assessment and advance tax by the end of every quarter.

Presently they go to banks before the deadline, stand in queue, fill up relevant forma and pay up the taxes. These kind of electronic payment measures will be a huge relief to such people.
  
Tax Payment should not be confused with filing of income tax returns.

Tax Payment is the actual money you pay to the tax department as per your income. If you are a salaried person and have no other sources of income then chances are that the tax is being deducted at source (TDS) and being paid by the employer.

On the other hand an income tax return is an annual statement you submit to the tax department, which gives details about your income and taxes paid.

It is important to understand the difference.

Be ready for transparent and efficient alternative

The IT department has been taking a lot of steps towards electronic collection of taxes and returns. It is a much more transparent, convenient, fast, efficient and an environment friendly alternative.

The Central Board of Direct Taxes (CBDT), as a part of its e-governance initiative, wants to provide more convenience to taxpayers and has asked authorised banks to roll out the facility. More banks are expected to follow suit soon.