Income Tax - Mandatory e-payment – not necessarily from your own account – CBDT clarifies
As per Notification S.O.No.493 (E) dated 13.3.2008, the following categories of taxpayers have to make payments electronically.
1. A company
2. A person (other than a company), to whom provisions of section 44AB of the Income-tax Act, 1961 are applicable.
The provisions of Section 44AB are applicable to every person
1. Carrying on business if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds forty lakh rupees in any previous year;
2. Carrying on profession if his gross receipts in profession exceed ten lakh rupees in any previous year;
3. Carrying on the business if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD or section 44AE or section 44AF or section 44BB or section 44BBB, as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year.
What does electronic payment mean? It is defined as payment of tax by way of
( i ) Internet banking facility of the authorized bank; or
(ii) Credit or debit cards.
Board has received representations from some foreign and resident assessees highlighting difficulties in availing internet banking facilities of the authorized banks.
CBDT has clarified that
1. An assessee can make electronic payment of taxes also from the account of any other person.
2. However, the challan for making such payment must clearly indicate the Permanent Account Number (PAN) of the assessee on whose behalf the payment is made.
3. It is not necessary for the assessee to make payment of taxes from his own account in an authorized bank.
Further, Board has also clarified that payment of any amount by a deductor by way of tax deducted at source (TDS) or tax collected at source (TCS) shall fall within the meaning of ‘tax' for the purpose of the rule 125 of the Income-tax Rules, 1962.
CBDT Circular No. 5/2008, Dated: July 14, 2008