Income Tax News: Authorised Banks You Must Know for Seamless Tax Payments, Check

Income Tax News: As the deadline of July 31 to file your income tax return (ITR) approaches, it's crucial for taxpayers to be prepared. Paying your income tax online via the e-filing portal is a convenient option.

Pay Your Outstanding Tax Online

After filling out your ITR form, you might find that your tax liability exceeds the TDS (tax deducted at source) paid during the year. In this case, you must pay the remaining tax online through your bank account. Note that this payment is possible only through one of the 28 banks authorized by the Income Tax (I-T) department.

List of Authorised Banks

The banks where tax payments are permitted include:

• Axis Bank
• Bandhan Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• City Union Bank
• DCB Bank
• Federal Bank
• HDFC Bank
• ICICI Bank
• IDBI Bank
• Indian Bank
• Indian Overseas Bank
• IndusInd Bank
• Jammu & Kashmir Bank
• Karur Vysya Bank
• Kotak Mahindra Bank
• Karnataka Bank
• Punjab National Bank
• Punjab & Sind Bank
• RBL Bank
• State Bank of India
• South Indian Bank
• UCO Bank
• Union Bank
• Dhanlaxmi Bank

Getting a Refund

If the TDS and TCS (tax collected at source) you’ve paid during the year exceed your tax liability, the tax department will issue a refund. This refund is usually processed within a few days or weeks and is sent to the bank account linked to the e-filing portal.

Changes in Tax Regime

The Finance Act 2023 brought changes to Section 115BAC, making the new tax regime the default for taxpayers. Under this regime, taxpayers pay lower tax rates in exchange for forgoing most deductions and exemptions.

• Income between ₹3 to 6 lakh: 5% tax
• Income between ₹6 to 9 lakh: 10% tax
• Income above ₹9 lakh: Higher rates apply (15%, 20%, 30%)

Resident individuals with a total income not exceeding ₹7 lakh are eligible for a tax rebate of up to ₹25,000 under Section 87A.

New Surcharge Rates

For income above ₹5 crore, the surcharge rate has been reduced from 37% to 25%. Consequently, the highest effective tax rate under the new regime has been lowered from 42.74% to 39%.