How to Pay Income Tax Online in India: Self-Assessment Tax, Advance Tax & e-Pay Tax Guide (AY 2026-27)

You've calculated your tax liability, claimed your deductions, and your ITR is ready to file. But there's a balance tax due — and you need to pay it before submitting your return. If you've never paid income tax directly (beyond TDS your employer deducts), the process can feel confusing. Which challan do you use? What's the difference between self-assessment tax and advance tax? How do you make sure the payment reflects in your return?

This guide walks you through every step of paying income tax online for AY 2026-27.

Types of Income Tax Payments

Before you pay, understand which type of tax payment applies to your situation:

Most salaried individuals will encounter self-assessment tax (code 300). This arises when your TDS doesn't fully cover your tax liability — common if you have income from FDs, rental property, capital gains, or freelance work alongside your salary.

Step 1: Calculate the Exact Amount to Pay

Before heading to the payment portal, calculate your balance tax precisely:

Total Tax Liability (after deductions and rebate) Minus TDS already deducted (check Form 26AS/AIS) Minus Advance tax already paid (if any) Minus TCS credit (if any) Equals Self-assessment tax due

For example, say your total tax liability for FY 2025-26 is Rs 1,85,000. Your employer deducted TDS of Rs 1,50,000 and your bank deducted Rs 2,000 TDS on FD interest. Your balance self-assessment tax is Rs 33,000.

Don't forget to add interest under Sections 234A, 234B, and 234C if applicable:

• Section 234A: Interest at 1% per month for late filing (after July 31)
• Section 234B: Interest at 1% per month if advance tax paid was less than 90% of assessed tax
• Section 234C: Interest for deferment of advance tax instalments

If you're filing before the deadline and your total tax liability before TDS is under Rs 10,000, you're exempt from advance tax provisions and no interest under 234B/234C applies.

Step 2: Access the e-Pay Tax Portal

The old OLTAS system and physical Challan 280 have been replaced by the e-Pay Tax facility on the Income Tax e-Filing portal.

1. Go to incometax.gov.in
2. Click e-Pay Tax under the Quick Links section on the homepage (no login required)
3. Enter your PAN and mobile number
4. You'll receive an OTP on your mobile — enter it to proceed

If you're already logged in to the e-Filing portal, navigate to e-File → e-Pay Tax from the dashboard menu.

Step 3: Select the Correct Tax Payment Category

On the e-Pay Tax page, you'll see several payment categories. For most individual taxpayers:

• Select Income Tax as the payment category
• Choose the Assessment Year — for income earned in FY 2025-26, select AY 2026-27
• Select the Type of Payment:
  • (300) Self-Assessment Tax — if you're paying balance tax while filing your ITR
  • (100) Advance Tax — if you're paying tax before the financial year ends
  • (400) Tax on Regular Assessment — only if you received a demand notice

A common mistake is selecting the wrong assessment year. Remember: FY 2025-26 income is assessed in AY 2026-27. If you accidentally pay for the wrong year, getting it corrected involves a rectification request that can take weeks.

Step 4: Enter the Tax Breakup

You'll need to split your payment into:

If you're unsure about the breakup, 49Tax's AI engine computes your exact tax, cess, and interest automatically when preparing your return — you can use those figures directly here.

Tip: Pay the interest component separately in the designated field rather than clubbing it with the tax amount. This ensures your Form 26AS reflects the correct breakup.

Step 5: Choose a Payment Method

The e-Pay Tax portal supports multiple payment methods:

Net Banking

Select your bank from the list of authorized banks. You'll be redirected to your bank's net banking portal to complete the payment. This is the most widely used method.

Debit Card

Visa and Mastercard debit cards from select banks are accepted. A convenience fee may apply (typically Rs 0 for amounts under Rs 1 lakh via RuPay cards).

Pay at Bank Counter

If you prefer offline payment, generate a Pay at Bank challan on the portal and visit the authorized bank branch with the printout. The bank will process the payment and update the record electronically.

UPI

Available for payments up to Rs 1 lakh (or up to Rs 5 lakhs with select banks that support higher UPI limits). Enter your UPI ID, approve the payment request on your UPI app, and you're done.

NEFT/RTGS

For larger amounts, generate an NEFT/RTGS mandate on the portal and use your bank's net banking to complete the transfer. The payment reflects in your tax account within a few hours.

Step 6: Save Your Challan Receipt (BSR Code and Challan Serial Number)

After successful payment, you'll receive a challan receipt (CRN — Challan Reference Number). This is critical. Save or download it immediately.

The receipt contains:

• BSR Code — the bank branch code
• Challan Serial Number — unique payment identifier
• Date of Payment
• Amount paid with breakup

You'll need the BSR code, challan serial number, and date of payment when filling your ITR. Without these details, you cannot claim credit for the tax paid.

Step 7: Verify the Payment in Form 26AS/AIS

Tax payments typically reflect in your Form 26AS under Part C (Tax Paid) within 3 to 5 working days. Cross-verify:

• The amount matches what you paid
• The assessment year is correct
• The payment type (self-assessment/advance) is correctly recorded

If the payment doesn't appear after 7 days, contact the bank or raise a grievance on the e-Filing portal. Common reasons for non-reflection include incorrect PAN entry at the time of payment or bank-side processing delays.

Step 8: Enter Payment Details in Your ITR

When filing your return:

• In the Tax Payments schedule of your ITR form, enter:
  • BSR Code
  • Date of Deposit
  • Challan Serial Number
  • Amount Paid
• This should match what's in your Form 26AS

If you're using 49Tax to file your return, your self-assessment tax payment details are pulled automatically from your Form 26AS once the payment reflects.

How to Pay Advance Tax: Instalment Schedule for FY 2025-26

If your tax liability (after TDS) exceeds Rs 10,000 in a financial year, you're required to pay advance tax in quarterly instalments:

Salaried individuals are exempt from advance tax if their employer deducts TDS on the entire salary. Advance tax becomes relevant when you have significant non-salary income (capital gains, rental income, freelance income) where no TDS is deducted.

If you miss an instalment, interest under Section 234C is charged at 1% per month on the shortfall amount for 3 months. Learn more about advance tax rules and calculations.

Common Mistakes to Avoid

Wrong Assessment Year: Selecting AY 2025-26 instead of AY 2026-27 for FY 2025-26 income is the most frequent error. Getting this corrected requires filing a rectification or challan correction request.

Paying the wrong tax type: Using code 100 (advance tax) when you should use 300 (self-assessment tax) can create mismatches in processing. While the tax credit is still available, it may delay your refund or trigger an intimation under Section 143(1).

Not paying before filing: Your ITR will show a tax due if you file without paying self-assessment tax first. The return may be treated as defective under Section 139(9).

Ignoring interest: If you owe interest under Sections 234A/B/C, calculate and pay it along with your tax. If you underpay, the CPC will compute the correct interest and adjust it from your refund or raise a demand.

Not saving the challan: Without the BSR code and challan serial number, you cannot report the payment in your ITR. Always download the receipt immediately after payment.

What if You Overpay?

If you pay more tax than your actual liability, the excess amount is refunded after your ITR is processed. The refund is credited to the bank account linked to your PAN on the e-Filing portal, and you'll receive interest under Section 244A at 0.5% per month on the excess amount (calculated from the date of payment of tax or the due date of filing the return, whichever is later, to the date of refund).

You can track your refund status on the e-Filing portal after your return is processed.

Key Takeaway

Paying income tax online is a 10-minute process once you know the exact amount, the correct assessment year, and the right payment type. Before filing your ITR for AY 2026-27, calculate your balance tax, pay via the e-Pay Tax portal, wait for it to reflect in Form 26AS, and then file. Paying the correct amount upfront — including any applicable interest — avoids demand notices, processing delays, and unnecessary correspondence with the department later.