Online Payment and benefits of Direct Taxes

Online Payment

Direct taxation is a must for everyone. However, the following individuals must pay their direct taxes online since they are unable to use physical means of payment:-

(a) All businesses

(b) All taxpayers, excluding businesses that are required by section 44AB to have their accounts audited.

Taxes can be paid online by visiting the applicable government website. The processes for paying direct taxes online are shown below:-

Step 1: Visit the NSDL e-Governance website.

Step 2: Based on the direct tax payment criterion, select the appropriate challan (ITNS 280, ITNS 281, ITNS 282, or ITNS 283).

Step 3: Submit the PAN or TAN, if appropriate

Step 4: You will be able to enter additional challan information when the online PAN/TAN validity check has been completed.

Step 5: You will be sent to the net-banking site for payment when the challan details have been verified.

Step 6: A challan counterfoil will be sent as evidence of payment following a successful transaction.

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Benefits of Direct Tax

There are certain advantages to direct taxes. The following is a list of some of them:-

(1) Economic:- Direct taxes, such as income taxes, are gathered annually and are often taken out at the source. For instance, an employee's salary is withheld each month to cover income tax. Due to the employer's role as the tax collector in this situation, significant administrative expenses are saved. By using this technique, a direct tax is more cost-effective than other taxes that have high administrative expenses.

(2) Productive:- Direct taxes also produce a lot of wealth. The amount of money collected by direct taxes fluctuates in direct proportion to the country's changes in national wealth. Simply put, the population and/or economic growth of a nation will raise direct tax revenues as a result.

(3) Certain:- A taxpayer is certain of the amount of tax that must be paid in the event of direct tax. The tax authorities can also accurately forecast the amount of direct tax income they may expect. The tax sum is clear since it was determined in advance of the due day for filing taxes. The fact that both parties are confident of the tax amount contributes to the removal of corruption from the tax-collecting process.

(4) Equitable:- A taxpayer's income is used as the foundation for the direct taxes to be levied. Comparatively speaking, taxpayers with higher incomes are required to pay more in taxes. As a result, the wealthy pay higher taxes than the underprivileged. All societal segments, though, may benefit from this. People that come from comparable socioeconomic backgrounds pay the same amount in taxes. The direct tax's egalitarian feature promotes justice and equity for all swaths of the population.

(5) Progressive:- Direct taxes are crucial in bridging the gap in financial inequality across the nation. These taxes are progressive since the government levies them on citizens based on their income. In order to attain the goal of social and economic equality, the funds raised from these taxes are used to enact laws and policies aimed at assisting the underprivileged in society.

(6) Anti-inflationary:- Direct taxes can be employed to combat inflation and maintain the market's level of prices. It can be applied to regulate product demand and consumption. By raising the direct tax, one can reduce the rise in product and service demand that occurs during inflation. By doing this, you'll compel everyone to spend less on goods and services, which will lower demand and, in turn, lower the inflation rate.

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