India’s top taxing authority officially has approved allowing consumers to pay their taxes at ATMs after many banks began offering the option to their customers.
The Central Board of Direct Taxes now allows payment of taxes through ATMs of certain designated banks using the authority’s Online Tax Accounting System, according to a statement by the taxing agency.
Previously, some banks in India were offering customers the ability to pay taxes at ATMs that accepted other payments, and they processed them in a second offline step. The new service would link directly to the taxing authority’s payment system for immediate settlement, the statement said.
Among the services approved include the payment of advance income taxes, self-assessment taxes and taxes due after a regular assessment, the statement said. All options are free of charge.
To use the facility, a banking customer first would go through a one-time registration process that includes the bank verifying the individual’s credentials and other information submitted.
The authority has advised banks to register interested accountholders automatically by recording their income tax account numbers and soliciting their participation when accepting applications for ATM cards.
When using an ATM, the taxpayer would choose the direct tax payment option from the menu and enter the assessment year and the amount due, the statement said. Once the bank debits the payment from the individual's account, it will send the taxpayer a printed acknowledgment and text message confirming the completed transaction. The individual also can approach the card-issuing bank for a receipt.
Customers of 13 banks may use this facility, the statement said. The banks include Corporation Bank Ltd., Bank of Maharashtra Ltd., Union Bank of India Ltd., UCO Bank Ltd., Axis Bank Ltd. and HDFC Bank Ltd.
Many banks had started to offer the service on their own, including Mumbai-based HDFC Bank in August (
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