ITR Filing 2025 Update: Income Tax Department Expands ‘e-Pay Tax’ Facility to 31 Banks for Easier Online Tax Payment

New Delhi, July 1, 2025 — As taxpayers across India rush to file their income tax returns ahead of the extended deadline of September 15, 2025, the Income Tax Department has introduced a key update to enhance convenience: the expansion of its ‘e-pay tax’ facility to include 31 banks, making tax payment simpler and faster via the e-Filing portal.

This digital initiative is part of the government’s ongoing efforts to streamline tax compliance, promote paperless governance, and ensure ease of doing business and personal finance management.

What Is the e-Pay Tax Facility?

The ‘e-pay tax’ service on the Income Tax Department’s official portal allows individuals and businesses to pay direct taxes online without visiting physical bank branches. This system can be accessed pre-login (without logging in) or post-login (after logging in) to the Income Tax e-Filing portal.

Taxpayers can use this facility to pay:

• Advance Tax
• Self-assessment Tax
• Tax on Regular Assessment
• Demand Payment
• Equalisation Levy
• Other direct tax-related payments

The system supports multiple modes of payment, including net banking, debit/credit cards, UPI, NEFT/RTGS, and payment at bank counters, depending on the bank’s integration status.

Latest Update: Now 31 Banks Support e-Pay Tax

In a recent update, the Income Tax Department has added new banks to its list of supported financial institutions under the e-pay tax service. The revised list now includes 31 banks, comprising previously listed banks, newly added banks, and migrated banks.

Newly Added Banks in 2025

• Tamilnad Mercantile Bank – Added on March 5, 2025
• Yes Bank – Added on June 27, 2025

These additions aim to widen the scope of digital accessibility and help taxpayers from varied regions access the online tax payment system seamlessly.

Full List of 31 Banks Under e-Pay Tax Facility (2025)

Here is the complete list of banks where online tax payment is now enabled:

1. Axis Bank
2. Bandhan Bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Canara Bank
7. Central Bank of India
8. City Union Bank
9. DCB Bank
10. Dhanlaxmi Bank
11. Federal Bank
12. HDFC Bank
13. ICICI Bank
14. IDBI Bank
15. IDFC First Bank
16. Indian Bank
17. Indian Overseas Bank
18. IndusInd Bank
19. Jammu & Kashmir Bank
20. Karnataka Bank
21. Karur Vysya Bank
22. Kotak Mahindra Bank
23. Punjab and Sind Bank
24. Punjab National Bank
25. RBL Bank
26. South Indian Bank
27. State Bank of India (SBI)
28. Tamilnad Mercantile Bank
29. UCO Bank
30. Union Bank of India
31. Yes Bank

This expanded list offers more flexibility to taxpayers and improves regional banking coverage for a smoother compliance experience.

What If Your Bank Is Not on the List?

If your bank isn’t among the 31 listed, you still have alternatives to pay your taxes online. The Income Tax Department allows tax payment via:

NEFT/RTGS

You can pay taxes using NEFT/RTGS from your bank account through the following authorized banks:

• Bank of Maharashtra
• Canara Bank
• Federal Bank
• HDFC Bank
• Kotak Mahindra Bank
• State Bank of India

This method is particularly useful for non-individual taxpayers, such as firms and companies with specific payment routing needs.

How to Use the e-Pay Tax Facility: Step-by-Step Process

Filing and paying taxes online has become more user-friendly. Here’s a simplified guide:

Step 1: Visit the Income Tax e-Filing Portal

Go to: https://www.incometax.gov.in

Step 2: Login or Use Quick Links

You can use either:

• Pre-login option for one-time payments
• Post-login with your PAN/Aadhaar and password for personalized services

Step 3: Navigate to e-Pay Tax

• Go to the Dashboard > e-File > e-Pay Tax section
• Or click on ‘e-Pay Tax’ under the “Quick Links” on the homepage

Step 4: Generate Challan

• Select Challan Form (CRN) based on your tax payment type
• Fill in the required details like PAN, assessment year, nature of payment, etc.

Step 5: Choose Payment Method

• Net Banking / Debit Card / UPI / NEFT / RTGS / Counter Payment (based on bank)

Step 6: Confirm and Make Payment

• Once payment is made, a Challan Identification Number (CIN) will be generated. Keep it for your records and ITR filing.

What is e-Filing and Who Should Use ITR-1 and ITR-4?

E-filing refers to the online filing of income tax returns without manual paperwork. It is mandatory for most salaried individuals and professionals, except for those with extremely low income or specific exemptions.

In the ongoing assessment year, taxpayers can file their returns using:

• ITR-1 (Sahaj): For individuals with income up to ₹50 lakh from salary, pension, one house property, or other sources
• ITR-4 (Sugam): For individuals, HUFs, and firms (other than LLPs) with presumptive income up to ₹50 lakh or ₹2 crore under Sections 44ADA/44AE

Note: As of July 1, 2025, Excel utilities for ITR-2 and ITR-3 (used by higher-income professionals or those with capital gains, foreign income, or directorships) have not yet been released.

Expert Take: A Step Towards Better Compliance

According to CA Neha Bansal, a Delhi-based tax consultant:

“The expansion of the e-pay tax facility is a welcome move. More banks mean more inclusion, especially for taxpayers in Tier 2 and Tier 3 cities. This, coupled with the simplified portal, boosts voluntary compliance.”

Tax officials echo a similar sentiment, stating that the goal is to reach 100% digital adoption by the next financial year.

Why It Matters for You

As the September 15 ITR filing deadline approaches, timely tax payment is essential to avoid penalties. The updated e-pay tax facility:

• Reduces waiting time for challan generation
• Ensures faster processing of tax returns
• Minimizes errors in manual filings
• Increases accessibility to banking services across demographics

Takeaway: Digital Tax Filing Gets a Boost with 31-Bank e-Pay Integration

With over 31 banks now integrated into the Income Tax Department’s e-pay system and continued updates to the e-Filing portal, taxpayers have more tools than ever to ensure smooth, timely, and accurate tax compliance.

Whether you are a salaried employee, small business owner, or freelancer, the revamped online payment infrastructure ensures that filing taxes in India in 2025 is faster, smarter, and easier.