Guide On How To Pay Capital Gains Tax Online

Shaun H. Ruff

Under Capital gains tax in India, tax is imposed on your profits made from an investment that is experienced when that investment is sold. When any taxable item or other stock assets are sold out, the gains or profit that you make from them are termed as “realized.” The tax only applies to sold investments. It does not apply for unsold assets, also known as “unrealized capital gains.” So, whenever you are storing stocks, it is fine. They will not incur taxes unless they are sold, irrespective of the duration they are kept for or the increment in their value. 

You may even be required to pay advanced tax if you have annual tax dues surpassing Rs 10,000. Generally, for the salaried mass, capital gains tax in India employers look up to the TDS deductions for handling the income tax payments. You may have to pay advance tax in the following instances — 

  • You earn a regular salary but you also have a handsome earning from capital gains or interest or even rental income. 
  • You are a freelancer
  • You run a business

How to Pay Income Tax Online?

Paying tax may seem like a cumbersome process. It does not only require extra time but also brings tons of worries to it. So, to use less of your time and also to make the process easier, the capital gains tax in India authority decided to make it easier for everyone to pay taxes, with the help of technology in a relaxing and straightforward manner. Now, individuals can make their income tax payments online, just by following some simple steps. You can also check best tax-saving methods to save more

Step 1 — Go To The Tax Information Network

For making the online payment, take a look at the tax information network of the capital gains tax in India and select the proceed option available in “CHALLAN NO./ITNS 280″ as the favored income tax challan for digital payment. 

Step 2 — Complete Filling Up Your Personal Details

  • First, choose (0021) Income Tax (Other than businesses) available in the Tax application choice. 
  • Then select the type of payment you want to do, properly. You have to do so among the following options: 
    1. (100) Advance Tax
    2. (102) Surtax
    3. (106) Tax on Distributed Profit
    4. (107) Tax on Distributed Income
    5. (300) Self Assessment Tax
    6. (400) Tax on Regular Assessment
  • Go for the choice ‘Self-assessment tax’ in case you have any taxes due. 
  • Thirdly, you have to choose your mode of payment. You will have two options to choose from — Debit Card and Net banking. 
  • Fourthly, You have to give your PAN (Permanent Account Number) and choose the correct Assessment Year (AY). For instance, in the case of the financial year 2019-20, 01 April 2019 to 31 March 2020, 2021-22 will be the relevant year. 
  • Type down your whole address correctly. 
  • Now, you have to enter your captcha code in the allotted space and press ‘Proceed’. 

Step 3 — Reassessment

Go through all the information given by you. And finally, submit your request to the bank. You will be automatically taken to the bank’s page for making payments. 

Step 4 — Study The Receipt (Challan 280) 

A tax receipt will be generated on the following screen when you complete the payment and all the payment details will be available there too. Carefully analyze the BSR code and challan serial number available on the right side of the challan. 

Remember: Never forget to save a copy of your tax receipt or you can also take a screenshot for safety. This is so because you will need the BSR code and challan number to enter in your tax return. 

Bottom Line

Now that you know how to pay your Capital Gains Tax in India, you can switch to the hassle-free online method. All you have to take care of is the tax receipt copy generated at the end. Paying Income Tax online has steps that are quite simple and they will surely help you to pay your taxes on time henceforth!

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