PhonePe Launches Income Tax Payment Feature On Its App; Details Here

Even as the ITR AY 2023-24 season is going on, digital payments platform PhonePe on Monday announced the launch of the ‘Income Tax Payment‘ feature on its app. The feature allows taxpayers, both individuals and businesses, to pay self-assessment and advance tax directly from within the PhonePe app, thus eliminating the need to log in to the tax portal.

“PhonePe has partnered with PayMate, a leading digital B2B payments and service provider, to enable this feature. Users can choose to pay their taxes using their credit card or UPI. With credit card payments, users also get a 45-day interest-free period and earn reward points on their tax payments, depending on their bank. Once the payment has been made, taxpayers will receive a Unique Transaction Reference (UTR) number as an acknowledgement within one working day. The challan for the tax payment will be available within two working days,” PhonePe said in a statement.

Currently, the income tax return deadline is July 31 for the assessment year 2023-24. According to the latest data on the income tax department’s website, a total of 4 crore ITRs for AY 2023-24 have been filed so far. Out of these, 3.62 crore ITRs have been verified, and 2.13 crore verified ITRs have been processed. There are a total of 11.39 crore individual registered users.

Niharika Saigal, head (bill payments and recharge business) at PhonePe, said, “At PhonePe, we are committed to continuously enhancing our offerings to meet the evolving needs of our users. We are thrilled to announce the launch of our latest feature, the convenience of paying income taxes on the PhonePe app itself.”

Saigal added that paying taxes can often be a complex and time-consuming task, and PhonePe is now offering its users a hassle-free and secure way to fulfill their tax obligations.

Pay Income Tax Via PhonePe: A Step-By-Step Guide

Step 1: Open the PhonePe app homepage and tap on the ‘Income tax’ icon

Step 2: Select the type of tax you would like to pay, the assessment year, and PAN Card details

Step 3: Enter the total tax amount and pay using the preferred mode of payment

Step 4: After the successful payment, the amount will be credited to the tax portal within two working days.