Quick digital payments Payment of income tax is not a chore of logging into net banking or waiting in the banks' queue anymore. The Income Tax Department, in 2025, allows you to pay taxes online through UPI apps like Paytm, PhonePe, or GPay. The method is simple, fast, and secure. This is how you can make your payment through these popular apps by creating a challan and scanning a QR code through the tax portal.
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Start with income tax portal To start the process of online payment, go to the official income tax portal (https://www.incometax.gov.in) and log in using your PAN and password. Once you are logged in, proceed to the "e-Pay Tax" option from the dashboard. This will lead you to the page where you can fill out the challan and choose UPI as the payment method.
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Create the challan for payment Click on the "New Payment" button and select the appropriate tax type—like Advance Tax, Self-Assessment Tax, etc. Enter the obligatory details such as assessment year, tax amount, and payment type. Once the form is completed, a Challan Identification Number (CIN) is generated. Then, you will be directed to the payment gateway options where you can select UPI-based apps.
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Select UPI and your preferred app Choose UPI as the payment option from the payment gateway. A QR code will be displayed on your screen. Launch your UPI app—Paytm, PhonePe, or GPay—and scan the QR code through the app's "Scan & Pay" option. Ensure that the UPI ID is the same as the one displayed on the screen. Input the same tax amount and pay securely through your UPI PIN.
Verify payment confirmation portal After successful UPI payment, you will be intimated on both your UPI application and tax portal. Keep the payment receipt for future use and download it. Your tax portal may take a few hours to reflect the status. Go through the payment history and check whether your challan is credited under "Payment History" heading on the dashboard.
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Save for future use It is advisable to retain the UPI transaction ID, challan receipt, and the email from the income tax portal acknowledging the bank has accepted the challan. The documents will be required while submitting your Income Tax Return or for responding to any questions raised by the tax department. You can also verify the CIN on the NSDL or income tax website to check if it has been accepted by the bank and processed by the department.
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Convenient and safe option UPI app-based payment of income tax using Paytm, PhonePe, or GPay is a quick, online, and secure option when compared to visiting banks or net banking. It is particularly convenient for small businesses and individuals who prefer mobile-based payments. With greater fintech services being included on government websites, UPI-based payments will be the new normal for making tax payments in India.
