It is that time of the year when almost all taxpayers get busy assessing their annual income and finances to file Income Tax Return (ITR). The last date for filing ITR for the financial year 2022-23 is July 31 and the government has clearly stated that ITR filing will not be extended beyond this date. If you also want to pay tax, then there is good news for you. Now you will be able to pay your tax sitting at home without taking any help in making payments, that too in just a few clicks. In fact, to help in paying taxes, PhonePe has come up with a new feature called ‘Income Tax Payment’ on its app.

The new feature allows both individual and business taxpayers to do self assessment and pay advanced tax directly within the PhonePe app. PhonePe has said, the new feature has also done away with the need for taxpayers to login to the portal. PhonePe has partnered with digital B2B payment and service provider PayMate to enable this feature.

PhonePe on Monday introduced its new feature, which allows users to pay their taxes easily using their credit cards or UPI. This feature comes with additional benefits for credit card payers, as users can enjoy an interest-free period of 45 days and can even earn reward points on making their tax payments, depending on their respective banks.

(Note- Through this new PhonePe feature, taxpayers can only pay tax and not file it.)

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How to pay income tax on PhonePe?

Here’s how users can make their tax payments on the PhonePe app in just 3 simple steps:

step 1: Open the PhonePe app on your iPhone or Android smartphone.

Step 2: Find the ‘Income tax’ icon on the homepage and tap on it.

Step 3: Next, select and add the type of tax you want to pay, assessment year and PAN card details.

Step 4: Enter the total tax amount and choose your preferred mode of payment.

Step 5: After successful payment, the amount will be credited on the tax portal within two working days.

PhonePe informed that after making the payment, taxpayers will immediately get a receipt in the form of a Unique Transaction Reference (UTR) number within one working day. Further, the tax payment challan will be made available to the users within two working days.