PhonePe Simplifies Tax Filing: Pay Directly from App!

Indian digital payment platform, PhonePe, has launched a new feature to simplify income tax payments. This innovative feature allows users to directly pay their self-assessment and advance taxes through the app, eliminating the need to log into the tax portal. This comes as a relief, especially at a time when taxpayers are hustling to file their Income Tax Returns before July 31 for the financial year 2022-23.

PhonePe has joined hands with digital B2B payment service, PayMate, to offer this facility. Users can pay their taxes using either a credit card or the Unified Payment Interface (UPI). There's also a perk for credit card users as they will have a 45-day interest-free period and earn reward points for tax payments, with the specifics varying by bank.

After payment, taxpayers will receive a Unique Transaction Reference (UTR) ID as payment proof. They will get the UTR within a day, and the challan is usually generated within two working days.

Paying taxes via PhonePe is straightforward. Users need to select the 'Income Tax' icon on the app's homepage, choose the type of tax, enter the assessment year and PAN Card details, specify the tax amount, and choose their preferred payment mode. The tax payment will then be credited to the tax portal within two working days.

Niharika Saigal, Head of Bill Payments and Recharge Business at PhonePe, expressed excitement over the feature, stating it simplifies the often complex task of paying taxes.

PhonePe, the largest UPI app in India, has made significant strides in fintech recently, launching an array of innovative services. The 'Income Tax Payment' feature is another step in easing financial transactions for its over 400 million registered users.