Users can make tax payments on PhonePe using UPI or credit cards.
You can now pay income tax through the homegrown fintech application PhonePe. The company announced on Monday the launch of the ‘Income Tax Payment’ feature on its mobile app and has partnered with PayMate, a leading digital B2B payments and service provider, to enable this feature.
“We are thrilled to announce the launch of our latest feature, the convenience of paying income taxes on the PhonePe app itself. 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 fulfill 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.
With PhonePe’s new ‘Income Tax Payment’ feature, both individuals and businesses can pay self-assessment and advance tax directly from the app. This in turn creates a seamless and efficient experience for taxpayers by eliminating the need to log in to the tax portal. Users can make tax payments using UPI or credit cards. Payments made via credit card will give users a 45-day interest-free period and earn them reward points, depending on their bank.
As an acknowledgment, users will receive a Unique Transaction Reference or UTR number within one working day after the payment is made, while the challan for the tax payment will be available within two working days. To use the feature, taxpayers will have to follow the following steps:
-Open the PhonePe app and on the homepage tap on the ‘Income tax’ icon
-Fill in the details like the Type of Tax, the assessment year, and PAN Card details of the taxpayer
-Enter the total tax amount and pay using the preferred mode of payment
-After successful payment of tax, the amount will be credited to the tax portal within two working days.
Founded in December 2015, PhonePe has over 470 million registered users, and “one in four Indians are now on PhonePe,” the company claims. The fintech company raised an additional $100 million from private equity firm General Atlantic in an ongoing funding round worth $1 billion. With this, PhonePe has raised a total of $850 million of capital so far. The funds raised by the company will be utilized to scale up the company’s payments and insurance businesses in the country. It also plans to launch and “aggressively” scale new businesses like lending, stockbroking, etc. over the next few years.
