Tax
How to Pay Income Tax Online in India: Advance Tax, Self-Assessment Tax, and the e-Pay Tax Process
Last reviewed: July 6, 2026
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If you owe the tax department money, whether as quarterly advance tax or a lump sum before filing, it has to be paid through the Income Tax Department's e-Pay Tax facility. Here's how to pay income tax online, whether you need to pay advance tax online in instalments or pay self-assessment tax online just before filing.
How to pay advance tax online: paying as you earn, not just at filing time
Advance tax is tax paid during the financial year itself, in instalments, rather than as one lump sum when you file your return. It applies if your estimated tax liability for the year is ₹10,000 or more after accounting for TDS, under Section 208 (ClearTax, Advance Tax). This typically catches freelancers, business owners, and anyone with capital gains, rental income, or interest income large enough that TDS doesn't cover the full tax bill, even if they're also salaried.
The instalment schedule for FY 2025-26 is fixed by Section 211:
| Due date | Cumulative advance tax paid |
|---|---|
| 15 June 2025 | 15% of estimated liability |
| 15 September 2025 | 45% of estimated liability |
| 15 December 2025 | 75% of estimated liability |
| 15 March 2026 | 100% of estimated liability |
Taxpayers under the presumptive taxation schemes (Sections 44AD or 44ADA) are an exception. They can pay their entire estimated liability in one instalment by 15 March, without needing to estimate or pay anything at the three earlier dates (ClearTax, Advance Tax).
Missing an instalment or underpaying triggers interest under Section 234C on the shortfall for that period, calculated at 1% per month. Separately, if your total advance tax paid by 31 March falls short of 90% of your actual final tax liability, interest under Section 234B kicks in at 1% per month from 1 April until you pay the balance. There's a small buffer built in: no Section 234C interest applies if you've paid at least 12% of the liability by the June instalment and 36% cumulatively by the September instalment (ClearTax, Advance Tax).
How to pay self-assessment tax online: the balance you pay before filing
Self-assessment tax, under Section 140A, is whatever tax you still owe after TDS and advance tax are accounted for, paid just before you file your return. This is common if TDS wasn't deducted correctly, if you have income your deductor didn't know about, or if your final computation throws up a small balance that advance tax instalments didn't fully cover.
Unlike advance tax, self-assessment tax isn't a scheduled payment. It's calculated at the point of filing, and most return-preparation tools (including Quicko) compute the exact amount for you as part of the filing process, before you submit your return.
How to actually pay: the e-Pay Tax process
Both advance tax and self-assessment tax are paid the same way, through the e-Pay Tax facility on the Income Tax Department's e-filing portal. The general steps:
Step 1: Log in and navigate to e-Pay Tax
Log in to the e-filing portal with your PAN and go to the "e-Pay Tax" option, usually found under Quick Links or the e-File menu.
Step 2: Select the correct assessment year and payment type
Choose the assessment year the payment relates to, and select the payment type: Advance Tax, Self-Assessment Tax, or another category if applicable (such as tax on regular assessment following a notice).
Step 3: Enter the tax break-up
Enter the amount under the relevant heads, income tax, surcharge, cess, and interest if any is due. Most filing tools calculate this breakdown automatically so you're not doing the arithmetic yourself.
Step 4: Choose a payment mode and pay
Pay via net banking, debit card, UPI, RTGS/NEFT, or a payment gateway, depending on what your bank supports through the portal. Payment is typically reflected the same day.
Step 5: Save the challan and use it while filing
Once paid, download and save the challan receipt (with the BSR code and challan serial number). You'll need these details when filing your return, so the payment is correctly credited against your PAN.
If you're filing your return around the same time, How to File Your Income Tax Return: A Step-by-Step Walkthrough picks up from here. And if you're unsure whether you're required to pay any tax at all this year, Do You Actually Need to Pay Income Tax? Here's How to Check is worth reading first.
Let the platform calculate what you owe
We use and recommend Quicko for filing ITR in India. It works out any advance tax shortfall or self-assessment tax due as part of the filing process, so you're not calculating challan amounts by hand.
File your ITR →Affiliate link. We may earn a commission if you sign up, at no extra cost to you.
*This article reflects advance tax due dates and provisions applicable for FY 2025-26 (AY 2026-27). Confirm current rules on the [Income Tax Depa
Frequently asked questions
How do I pay income tax online in India?
Through the e-Pay Tax facility on the Income Tax Department's e-filing portal (incometax.gov.in), using your PAN, selecting the correct assessment year and payment type (advance tax, self-assessment tax, or regular assessment tax), and paying via net banking, debit card, UPI, or a bank counter.
What is the difference between advance tax and self-assessment tax?
Advance tax is paid in instalments during the financial year itself, before you know your final numbers, if your estimated tax liability is ₹10,000 or more. Self-assessment tax is any balance still owed after TDS and advance tax, paid just before you file your return for that year.
What happens if I miss an advance tax instalment?
You owe interest under Section 234C for the shortfall in that instalment, and interest under Section 234B if your total advance tax paid by 31 March is less than 90% of your final tax liability. Both are calculated at 1% per month.
Do I need to pay advance tax if my employer already deducts TDS?
Usually not, if salary is your only income and TDS covers your full liability. Advance tax typically becomes relevant when you have other income, capital gains, freelance income, or rental income on top of salary, since TDS alone may not cover the full tax due.