Fintech and digital payment platform PhonePe on Monday launched a feature to pay income tax through its app.
Individuals and businesses can pay self-assessment and tax advance via UPI or credit card through the app, without logging into the income tax portal, PhonePe said.
The amount will be paid on the tax portal within two business days.
Users can pay taxes by logging into the app and selecting the “income tax” icon. Then, they must select the type of tax to pay, the year of settlement and the details of the Permanent Account Number (PAN). After entering the full tax amount, users will be able to pay using the chosen payment method.
Taxpayers will receive a unique transaction reference (UTR) number as acknowledgment within one business day after paying the tax, while the challan for payment will be available within two business days, it added.
Niharika Saigal, PhonePe’s Head of Bill Pay and Top Up Business, said: “Paying taxes can often be a complex and time-consuming task, and PhonePe now offers its users a safe and hassle-free way to meet their tax obligations…this will transform the way our users pay taxes as we have now made the process simpler and easier.” PhonePe has partnered with digital B2B payment service provider PayMate to enable the feature.
Started in 2015, the Walmart subsidiary was recently spun off from its e-commerce sibling Flipkart. PhonePe has around Rs 50 crore of registered users and processes 45 per cent of transactions on Bharat Bill Pay System (BBPS). The company went fintech in 2017, launching mutual funds and insurance products.