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Step-by-step guide to paying your income tax online

Paying your income tax online offers a convenient and efficient solution from the comfort of your home or office.

The government of India has established a simplified and user-friendly online income tax payment service.

This guide provides a step-by-step overview of the process for paying your taxes through the government income tax portal and directly via your HSBC account.

Why do I need to pay taxes?

What payment method can I use?

How to pay income tax online: step-by-step guide

Benefits of paying your taxes online

Why do I need to pay taxes?

For salaried individuals, taxes are typically deducted at source (TDS) by employers. However, if you're self-employed or have an income beyond salary (such as rental income), you may need extra tax payments. Filing your tax returns is the key to knowing your tax liability or eligibility for a refund.

Non-resident Indians (NRIs) are taxed only on income earned within India. To learn more, read Understanding NRI income tax rules.

What payment method can I use?

Before paying, you'll want to calculate your tax liability. Online tax payments can then be made through Personal Internet Banking, or by credit or debit cards.

How to pay income tax online: step-by-step guide

Follow these steps to begin filing your income tax returns online:

Through the income tax portal

  1. Access the payment portal
    Select 'Make a payment'. This link will open in a new window.
  2. Complete the challan
    Choose the applicable challan and provide your Permanent Account Number (PAN) details, assessment year, address, email ID, mobile number, details of income tax, surcharge and cess. Proceed to the next step.
  3. Review and submit
    Verify the entered information for accuracy. Accept the Terms and Conditions and select 'Submit'. Confirm the transaction.
  4. Log in and authenticate
    Log in to your online banking using your credentials. HSBC India Mobile Banking app users can use their Digital Secure Key for authentication.
  5. Select payment account
    Choose the account for payment and authenticate the transaction.
  6. Confirmation
    Confirm the payment. Upon successful validation, download the challan from the income tax portal.

Security measures:

  • For transactions below INR10,000, a One-Time Password (OTP) via SMS will be sent to confirm the transaction.
  • For transactions between INR10,000 and INR250,00,000, authentication will be via a security code generated using the Digital Secure Key on the HSBC India mobile banking app.

Through your HSBC bank account

If you're an HSBC customer with online banking access, you can directly pay different types of taxes online through your account. 

Before you begin, make sure you also have a valid PAN and mobile number registered with us. Then:

  • Start the transaction through HSBC online banking on our Pay Tax Online page.
  • Select the challan you want to pay.
  • Fill in your tax details, such as your PAN, address and email ID, and agree to the terms and conditions; click 'Submit' to make a payment.
  • Log on to HSBC Personal Internet Banking.
  • Select the account you want to use to pay, and enter the OTP or security code.

Keep the challan for future reference and potential enquiries from the Income Tax Department.

Pay with your HSBC bank account

If you're an HSBC customer with online banking access, you can directly pay your income tax through your account.

Benefits of paying your taxes online

With online tax payments, you can be sure your taxes will be paid on time. Here are 4 more benefits to paying online: 

  1. Convenience
    Pay from anywhere, saving time and effort.
  2. Record your payments
    Maintain a digital record of your tax payment.
  3. Secure transactions
    Enjoy secure and confidential transactions with prompt processing to avoid late penalties.
  4. Reduced errors
    The online system includes error-checking to minimise filing mistakes and potential penalties.
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Disclaimer

This publication has been issued by The Hongkong and Shanghai Banking Corporation Limited (HSBC), India, Incorporated in Hong Kong SAR with limited liability, for the information of its customers only. This publication does not constitute tax or investment advice or an offer to sell, or a solicitation of an offer to purchase or subscribe to any product / investment. The information herein is derived from sources believed to be reliable and the concerned Information Provider(s) have duly authorised HSBC to use such information provided by them. Whilst every care has been taken in compiling the information, HSBC and the concerned Information Provider(s) do not guarantee, or make any representation or warranty and accept no responsibility or liability as to its accuracy or completeness and shall not be liable for damages arising out of any person's reliance upon this information or any action taken or not taken as a result of any material contained in the publication. All information is subject to the relevant Act, Rules, Regulations, Policy Statements, etc., of the Income Tax Department and subject to change. Expressions of opinion are those of HSBC and the Information Provider(s) only and are subject to change without notice. HSBC has not independently verified any information provided by the Information Provider(s) or that has been derived from the sources believed to be reliable by HSBC. Opinions expressed herein do not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this publication. This document is for circulation in India only. No part of this publication may be reproduced or stored in a retrieval system without the prior written permission of HSBC. Any liability is accordingly expressly disclaimed by HSBC, its officers, directors and employees.