The Hindu Business Line : E-payment of taxes mandatory for corporates from April

New Delhi, Jan. 23 From April 1, corporates would be required to pay their direct taxes only through the electronic route. Electronic payment of direct taxes would also become mandatory from this date for all assesses (other than company) to whom tax audit is applicable, a Finance Ministry official said.

The official pointed out that taxpayers can make electronic payment through the Internet banking facility offered by any of the authorised banks.

“As of today, 18 banks are authorised to offer e-payment facility. It is our hope that other remaining banks would also offer Internet banking facility by April 1,” the CBDT official said.

Taxpayers will also be provided with an option to make electronic payment of taxes through Internet by way of debit cards/credit cards. Electronic payment is seen as a cleaner way to make payment and one could avoid paper work also. Currently, electronic payment for income tax payers is optional. This optional scheme was introduced in 2004.

Already assessees with Net banking accounts make their tax payments through the e-payment route. Of the banks that offer e-payment facility, sources said that only four — SBI, Axis Bank, HDFC Bank and ICICI Bank — are popular among taxpayers.

In fiscal 2006-07, the Government collected less than one per cent of its total direct tax collections of about Rs 2,29,272 crore through the e-payment mode. For fiscal 2007-08, the Centre has pegged the budget estimate for direct taxes at Rs 2,67,490 crore.

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E-payment of taxes mandatory for corporates from April