PhonePe upgrades payment suite; rolls out 'Income Tax' feature

PhonePe unveils Income Tax feature.

In an interesting upgrade to its payments platform, FinTech firm, PhonePe, rolled out the 'Income Tax' feature on July 24.

PhonePe, currently India's largest payment app, announced on July 24 the latest upgrade to its app. The latest feature will enable taxpayers across all sectors to pay self-assessment and advance tax directly from within the app.

PhonePe has tied up with leading digital B2B payments and service provider, PayMate, to incorporate the upgrade, according to a statement released by the company.

Head of Bill Payments and Recharge Business at PhonePe, Niharika Saigal, 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. 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. We believe that this will transform the way our users pay taxes as we have now made the process both simple and easy."

The newly-launched feature will simplify the tax payment for all, and also boost the efficiency of the entire process. Both kind of taxpayers, individuals and businesses, will now be able to enjoy a seamless tax-payment experience without even logging into the tax portal.

PhonePe users can pay their taxes with their credit card or through UPI. Furthermore, users who pay through credit cards will get access to a a 45-day interest-free window. They will also earn reward points on their tax payments, depending on their banks, stated the company.

Taxpayers will receive a Unique Transaction Reference (UTR) within one working day of the payment, as an acknowledgement. They will get the challan for the tax payment within two working days.

Also Read: PhonePe launches account aggregator services, integrates with various banks

Early this June, the Fintech firm unveiled its account aggregator (AA) services through PhonePe's wholly-owned subsidiary - PhonePe Technology Services Pvt Ltd (PTSPL). This will enable Indian consumers to consent to and share all their financial data, including bank statements, with regulated Financial Institutions.