PhonePe on Monday announced the launch of the ‘Income Tax Payment’ feature on its app. The feature allows taxpayers, both individuals and businesses to pay self-assessment and advance tax directly from within the PhonePe app. This eliminates the need to log in to the tax portal, creating a seamless experience for taxpayers, PhonePe said in a statement.

PhonePe has partnered with PayMate, a leading digital B2B payments and service provider to enable this feature. Users can choose to pay their taxes using their credit card or Unified Payments Interface (UPI). With credit card payments, users also get a 45-day interest-free period and earn reward points on their tax payments, depending on their bank, PhonePe said.

Once the payment has been made, taxpayers will receive a Unique Transaction Reference (UTR) number as an acknowledgement within one working day. The challan for the tax payment will be available within two working days.

Commenting on the announcement, Niharika Saigal, Head of Bill Payments and Recharge Business at PhonePe said, “Paying taxes can often be a complex and time-consuming task, and PhonePe is now offering its users a secure way to fulfill their tax obligations."

Here’s how users can pay their taxes via PhonePe app:

Step 1:

Open the PhonePe app homepage and tap on the ‘Income tax’ icon

Step 2: Select the Type of Tax you would like to pay, the assessment year, and PAN Card details

Step 3: Enter the total tax amount and pay using the preferred mode of payment

Step 4: Post successful payment, the amount will be credited to the tax portal within 2 working days.

(Edited by : Anshul)