Income Tax Collection _ Please onboard NPCI BBPS as a Biller

 

Income Tax Collection _ Please onboard NPCI BBPS as a Biller

          One of the primary requirements of BBPS is a unique identification number to fetch the outstanding bill.

          The primary requirement for payment of Income Tax is a CRN i.e Challan Reference Number.

          The CRN is the unique identifier in the Income Tax Application for tracking the tax paid by the PAN or TAN holder.

          Once the CRN is generated it means, that an indent to pay tax is created.

          This indent is one of the key factors in BBPS to fetch outstanding bills from the biller portal.

          There are multiple options provided by the Income Tax department for receipt of tax due to it by the tax payers.

          The current Payment Mode provided by Income Tax Department are:

o   Tax Payment through Net Banking      

o   Tax Payment through Debit Card        

o   Pay at the Bank Counter 

o   Tax Payment through RTGS / NEFT   

o   Tax Payment through Payment Gateway        

The tax payer has to decide the payment method before generating the Challan.

Once a payment mode is chosen for a Challan Form and Challan Reference Number (CRN) is generated for it, the payment mode cannot be changed later during payment.

The tax payment challan can be generated in two ways.

Way 01) Pre – Login __ Before logging into eFiling Portal

Way 02) Post – Login ___ After logging into eFiling Portal  

 

Pre – Login requirement __ Valid and active PAN/TAN

Post – Login __ Registered user on the e-Filing portal with valid user ID and password

 

The magic of Bharat Bill Payment System (BBPS) can be brought in for the Challans generated at the Pre-Login stage.

The Challan Number can be keyed in the BBPS Module, and once the Challan Payment Due details are picked up, the payment can be made as per the BBPS Channels.

 

The magic of BBPS also can be brought in for the payment of tax Challans generated by ERIs

Q: Who is an ERI?

Ans: e-Return intermediaries (ERIs) are authorized intermediaries who can file income-tax returns (ITR) and perform other functions on the behalf of taxpayers.

There are three types of e-Return Intermediaries:

Type 1 ERIs: File Income Tax Returns / Forms using Income Tax Department utility / Income Tax Department approved utilities through e-filing portal.

Type 2 ERIs: Create their own software application/portal to file Income Tax Returns / Forms on the e-Filing portal through Application Programming Interface provided by Income Tax Department

Type 3 ERIs: Develop their own offline software utilities instead of using Income Tax Department utility available on the e-Filing portal to enable the users to file Income Tax Returns / Forms.

Note:

Type 1 ERIs will be able to make payments online as well as offline.

Type 2 ERIs will be able to make payments offline only.

 

The magic of BBPS also can be brought in for payment of taxes of senior citizens by their kith and kin settled abroad.

 

 

Benefit 01) Opportunity for Income Tax payers to get familiarised with the various features of BBPS

Benefit 02) Another channel of payment to Income Tax Department. The basic structure is already in place. Only a slight tweaking may be required to align to the Income Tax collection rules.

Benefit 03) Opportunity for NPCI Bharat Bill Pay Ltd, to attract new customers on to its platform.

Benefit 04) Opportunity to increase the ‘Average Transaction Value’ on the BBPS platform.

 

Challenges – No visible challenges. NPCI BBPS payment channel is backed by Government only.  

Challenges may arise due to failed payment transactions. If more failures, for whatever reason, this will reduce the confidence in the system.

 

Additional Reading: Income Tax Portal - Create Challan Form (CRN) User Manual @ https://www.incometax.gov.in/iec/foportal/help/create-challan-form-crn

 

          Disclaimer: These are my personal views only. The bottom line is Safe ePayments. Nothing More, Nothing Less