Income tax payment has become significantly simpler with the introduction of UPI-based transactions on the Income Tax e-filing portal. Taxpayers no longer need to rely on net banking, visit bank branches, or go through lengthy verification processes. Instead, they can now use familiar UPI apps such as Paytm, PhonePe, and Google Pay to complete their advance tax, self-assessment tax, and other direct tax payments within minutes. This shift has streamlined the entire tax-payment experience, making it faster, transparent, and more user-friendly.
The Income Tax Department has integrated UPI as a secure and convenient payment mode on the e-filing portal. When a taxpayer initiates a payment, the amount is directly debited from their linked bank account via UPI. The system instantly generates a challan, ensuring that users receive immediate confirmation of a successful transaction. This ease of access is especially useful during busy tax-payment periods, allowing people to complete their compliance obligations without any hassle.
1. Log in and Open the ‘e-Pay Tax’ Section
Start by visiting the official e-filing website: incometax.gov.in. Log in using your PAN (as User ID) and password. Once you are on the dashboard, click on the ‘e-Pay Tax’ option.
Those who prefer not to log in can use the "e-Pay Tax" option available on the homepage. However, logging in makes it easier to track receipts and maintain payment history.
2. Generate the Correct Challan
After clicking on ‘New Payment’, choose the appropriate tax type. Most individuals will select either Advance Tax or Self-Assessment Tax.
Next, select the correct assessment year and enter the payable amount. Cross-check your name and PAN before continuing.
Once confirmed, the portal creates a challan and displays the total amount due along with available payment methods.
3. Select UPI and Complete the Payment
Choose UPI as your payment mode. The portal will show a QR code and sometimes a UPI ID.
Open your preferred UPI app—Paytm, PhonePe, or Google Pay—on your phone. Tap on the ‘Scan & Pay’ option and scan the QR code displayed on the portal. Verify the amount and authorize the transaction by entering your UPI PIN. Keep the app open until a “Payment Successful” message appears.
This method ensures fast, secure, and straightforward tax payment without additional steps.
4. Confirm Payment and Download the Receipt
Return to the e-filing portal. Within one or two minutes, the payment status generally updates to ‘Paid’.
Go to the ‘Payment History’ section to download your challan receipt.
This receipt contains important details such as the Challan Identification Number (CIN) and the UTR number, which serve as legal proof of payment. Save the PDF and email a copy to yourself for future reference.
Sometimes, users may see a “successful” status inside their UPI app while the portal still shows “pending”. In such cases, avoid making another payment immediately.
Wait for 30–60 minutes and refresh the ‘Payment History’ page.
If the amount has been debited but the challan has not been generated, check your bank statement for confirmation. If the issue persists, raise a support ticket on the portal or contact your bank or UPI app support using the UTR number.
Most failed UPI tax payments are automatically reversed within a short time, so users can expect the amount to be refunded without much delay.
The availability of UPI for income tax payment marks a major improvement in India’s digital tax-payment infrastructure. By eliminating additional formalities and long banking procedures, this feature allows taxpayers to settle their dues quickly, securely, and from anywhere. With instant challan generation and a transparent payment trail, UPI has made the entire process smoother and more reliable than ever before.
