Fintech major PhonePe to enable users to pay tax directly on app

Fintech major PhonePe has launched the ‘Income Tax Payment’ feature on its application to enable taxpayers such as individuals and businesses to pay self-assessment and advance tax directly from within the PhonePe app, the company announced on Monday. 

Users can now pay taxes with their credit card or over UPI. 

Users can pay taxes by tapping the ‘Income Tax’ icon on the PhonePe app homepage. Additionally, they can select the type of tax they would pay, the assessment year, and PAN Card details. Users then will have to enter the total tax amount and pay using the preferred mode of payment. The amount will be credited to the tax portal within two working days post successful payment. 

The company has partnered with a B2B payments and service provider, PayMate, to make this feature available. 

“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 fulfil 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,” said Niharika Saigal, Head of Bill Payments and Recharge Business at PhonePe. 

Users get a 45-day interest-free period and earn reward points with credit card payments, conditional to their bank. 

The company said that taxpayers will receive a Unique Transaction Reference (UTR) number as an acknowledgement within one working day once the payment is made. 

The challan for the tax payment will be available within two working days.