Para 15.8 — CAM
Original Rule Text
15.8 PROCEDURE TO BE FOLLOWED FOR DIRECT TAX PAYMENT THROUGH NEFT/RTGS AT ANY BANK:
15.8.1 Under this mode, payment of direct taxes through NEFT/RTGS can be done through any bank participating in the NEFT/RTGS clearing system of the RBI. RBI would itself be the recipient of the amount transferred through NEFT/RTGS, thus, eliminating the need for a link-up first with an authorized bank to receive the payment and, thereafter, its transfer to the RBI. RBI would, thus, perform the role of an authorized bank and that of an e-FPB in this mode of payment. Once this mode is selected by the tax payer, besides the generation of CRN, TIN 2.0 also generates “NEFT/RTGS Mandate Form”.
15.8.2 NEFT/RTGS mandate form has the same validity period as that of CRN printed on it. The CRN generated at the portal shall be incorporated in NEFT/RTGS mandate form in “Beneficiary Account Number” field. The RBI would provide for suitable validations for this field. In case of NEFT/RTGS payments, there shall also be a disclaimer on the challan copy of the mandate form that the payment through NEFT/RTGS is a transaction between the tax payer and her bank and the payment is deemed to be received by the government only when the amount is credited to the designated account in the RBI as per settlement cycle of RBI for NEFT/RTGS transactions. The payments in this mode would be permitted only against Internet
Banking and cheques tendered at the concerned bank branch where the tax payer is maintaining account.
15.8.3 Once the remittances are received by RBI, it performs the following functions:
a) RBI receives and validates the NEFT/RTGS transaction against the Challan details (CRN) received by it; and b) RBI communicates the receipt of such payment through generation of CIN in each case to TIN 2.0 and PRAKALP on a real time basis.
15.9 PROCEDURE TO BE FOLLOWED FOR DIRECT TAX PAYMENT THROUGH ANY BANK USING THE PAYMENT GATEWAYS (PGS) OF THE AUTHORIZED BANKS:
15.9.1 The TIN 2.0, for the ease of payment by tax payers, also allows payment through payment gateways (PGs). This mode of payment opens a whole lot of payment options such as payments through debit cards, credit cards, UPI, BHIM, etc.
15.9.2 As a policy, the Government shall not entertain chargeback on tax payments through cards. Tax once paid cannot be withdrawn through the banking channels. The only mode of refund available to the tax payer is through the process of filing Income Tax Return.
15.9.3 The payment through this mode can be made through any bank. However, only the PGs of the authorized banks are allowed to provide the facility of payment through this mode. The Office of the Principal Chief Controller of Accounts, CBDT and the RBI do not deal directly with the service providers of PGs.
What This Means
Direct taxes can be paid via NEFT/RTGS through any bank in the RBI clearing system — not just authorized banks. In this mode, RBI itself acts as both the authorized bank and the e-FPB, directly receiving the funds. The taxpayer generates a CRN and NEFT/RTGS mandate form on TIN 2.0, then initiates the transfer from their bank. RBI validates the transaction against the CRN and generates the CIN on receipt. For payment gateway mode, authorized bank PGs enable cards, UPI, and BHIM payments from any bank, though chargeback on tax payments is not allowed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1NEFT/RTGS mode allows direct tax payment from ANY bank — RBI acts as authorized bank and e-FPB
- 2CRN is embedded in the 'Beneficiary Account Number' field of the NEFT/RTGS mandate form
- 3RBI validates the NEFT/RTGS transaction against the CRN and generates CIN in real time to TIN 2.0 and PRAKALP
- 4Payment Gateway mode opens options like debit cards, credit cards, UPI, and BHIM from any bank
- 5Government does not entertain chargeback on tax payments through cards — refund only via ITR filing
Practical Example
A consultant banks with a cooperative bank that is not an authorized tax-collecting bank. She generates a challan on TIN 2.0, selects NEFT/RTGS mode, and downloads the NEFT mandate form. She instructs her cooperative bank to transfer Rs 2 lakh via NEFT to RBI using the CRN as the beneficiary account number. RBI receives the amount in the next NEFT settlement cycle, validates the CRN, generates a CIN, and reports it to TIN 2.0 and PRAKALP. Her tax payment is confirmed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why does RBI act as the e-FPB in NEFT/RTGS mode?▼
Can I get a chargeback if I accidentally paid more tax through a credit card?▼
What does RBI's Credit Notification contain?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.