Online Tax Payments via Fednet (Federal Bank Internet Banking)

With Federal Bank’s Internet Banking facility, FedNet, you can pay your direct and indirect taxes online. The service is available to all Corporate and Retail customers or Federal Bank registered for FedNet with transaction facility.

As you know, online tax remittance is mandatory for most of the Tax Payments, both direct and indirect taxes. With this service you can make online Tax Payments effortlessly and securely.

Online remittance is mandatory for:

Direct Taxes

• All corporate assesses
• All assesses (other than companies) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable

Indirect Tax

• All corporates who are liable to pay excise duty or service tax of Rs 10 lakh or more in a year are required to pay tax online

Direct and Indirect taxes that can be paid online

• [advt]Income Tax
• Corporation Tax – Tax on Companies and Tax Deducted at Source from Companies
• Interest Tax and Expenditure Tax
• Gift Tax
• Wealth Tax
• Fringe Benefit Tax (FBT)
• Securities Transaction Tax (STT)
• Banking Cash Transaction Tax (BCTT)
• Other Tax Deducted or collected at source (TDS or TCS) on salaries of employees, interest on Fixed Deposits, Vendor Payments, Rent etc.
• Any other Direct Tax including Advance Tax
• Central Excise duty
• Service Tax

Registration

• You will be required to do a one-time registration for CBDT / CBEC e-Payments with PAN / TAN / Assessee Code and other details like Name, Address, etc. Login to FedNet with user name and password
• Each PAN / TAN / Assessee Code has to be registered separately.
• The details provided by you during registration will then be verified by the Bank. It may take maximum of two working days.
• Thereafter you will receive an email stating whether your registration was approved or rejected with reasons.
• If your registration is successful, you can start making the payment of your taxes.

Payments

• Login to FedNet with username and password
• Select “Pay your Tax” from “Pay Bills” Menu.
• Select the relevant challan applicable to you payment and then select the PAN / TAN / Assessee Code from the drop down list.
• The challan form will be loaded with details of PAN / TAN / Assessee Code, Name and Address. You have to fill in the details such as Tax Major Head, Minor Head (or Account code), Assessment Year / Financial year, nature of payment and Amount with break-up etc.
• Ensure that all the details entered in the challan are correct and confirm payment by selecting the Submit / Insert button.
• Payments executed by you will be credited to the Govt account only on the next working day
• The copy of the accepted challans with the “Challan Index Number” (CIN – with the BSR code of the remitting Branch, Date of Payment and the Challan No) will be available within 2-3 working days from the date of payment. You can then download the challans from FedNet.

Pre-requisites for Online Tax Payment

• Savings / Current / Other Accounts with FedNet transaction facility
• Valid PAN / TAN / ASSESSEE code
• Registration of PAN / TAN / ASSESSEE code with FedNet
• Present limit for transactions through FedNet is Rs.30,000/- per day. For higher limits, you have to submit “Application Form for Higher Limits” to your Branch.

Payment Timings

• This is a 24 x 7 x 365 facility and as such you can make payment at any time of your convenience.
• All the payments executed by you in a day will be accounted for on the next working day.

Advantages

• Ease of operation and convenience.
• No fee for tax payment
• Simple consolidated menu
• Personalized and secure remittance
• Ability to do online payments up to Rs.30,000/- per day initially, and for higher limits you have to submit an application as mentioned above.
• Facility is available 24x7x365 basis.
• Remittance can be made on behalf of the firm, company and others, provided the PAN / TAN / Assessee code is registered.
• Cyber Receipt in the form of Challan including CIN can be downloaded / printed for record.[source]