PhonePe Launches Feature to Pay Income Tax Through Its App

 Digital payments and fintech platform, PhonePe, has unveiled a new feature that allows individuals and businesses to conveniently pay their income taxes via the PhonePe app. This feature enables users to pay both self-assessment and advance taxes using either UPI or credit card directly through the app, eliminating the need to log in to the income tax portal.

According to PhonePe, the payment amount will be swiftly transferred to the tax portal within two working days. To utilize this feature, users simply need to log in to the app and select the "income tax" icon. From there, they can choose the specific type of tax to be paid, specify the assessment year, and provide their Permanent Account Number (PAN) details. After inputting the total tax amount, users can proceed to make the payment through the selected mode of payment.

Upon completion of the payment, taxpayers will receive an acknowledgment in the form of a Unique Transaction Reference (UTR) number within one working day. Additionally, the payment challan will be accessible within two working days, as per PhonePe's statement.

Niharika Saigal, the Head of Bill Payments and Recharge Business at PhonePe emphasized that tax payments can often be complex and time-consuming. She highlighted that this new feature provides a secure and straightforward solution to fulfill tax obligations, potentially transforming the way users pay their taxes.

The collaboration for this feature involves PhonePe partnering with digital B2B payments service provider PayMate. PhonePe, a subsidiary of Walmart, was established in 2015 and has recently been separated from its e-commerce counterpart Flipkart. The platform boasts around 50 crore registered users and processes a significant portion of transactions on the Bharat Bill Pay System (BBPS). Since becoming a fintech company in 2017, PhonePe has expanded its offerings to include mutual funds and insurance products.