Summary: The Income Tax Department’s portal now presents an integrated e-Pay Tax module across two statutory eras. The portal states that liabilities up to FY 2025-26 are handled under the Income-tax Act, 1961, while Tax Year 2026-27 onward is handled under the Income-tax Act, 2025, which took effect on 1 April 2026. This makes the first screen’s Act and period selection a substantive control, not a cosmetic label. A taxpayer must then select the correct tax category and assessment or tax year, create a Challan Reference Number, choose a permitted payment mode and complete payment within the CRN’s validity. A successful debit is not enough: the taxpayer should download the challan receipt, confirm the amount, major and minor heads, period, PAN or TAN and payment status, and reconcile the credit to the relevant return or demand. The portal also provides a challan-correction workflow for specified fields, but eligibility and time limits vary; a refund or reversal is not generally processed by the portal’s e-Pay service. This practical guide separates period selection, CRN generation, bank payment, correction and evidence so that an avoidable payment-classification error does not delay a return, demand response or tax credit.
- Income-Tax Integrated Payment Module: Selecting the Correct Act
- Income-Tax Act and Tax Year Selection for Challan Payments
- Generating the Correct Challan Reference Number (CRN)
- PAN, Assessment Period, Tax Type and Amount Checks
- Income-Tax Payment Modes and Transaction Completion
- Downloading and Reconciling the Tax Payment Receipt
- Income-Tax Challan Corrections and Available Remedies
- Maker–Checker Controls for Corporate Tax Payments
- Avoiding CRN, Tax Head and Assessment Period Errors
- Frequently Asked Questions
- Which Act should be selected for FY 2025-26 tax paid in October 2026?
- When is the Income-tax Act, 2025 path used?
- Is a CRN mandatory?
- Does a bank debit prove successful tax payment?
- Can every challan error be corrected online?
- Can the e-Pay portal issue a refund for a duplicate payment?
- What records should a business retain?
- Key Takeaways
Income-Tax Integrated Payment Module: Selecting the Correct Act
Until FY 2025-26, users commonly navigated tax payments using the vocabulary and assessment-year structure of the Income-tax Act, 1961. From 1 April 2026, the Income-tax Act, 2025 applies prospectively through its Tax Year framework, while repeal-and-savings provisions preserve the older Act for earlier periods and proceedings. The portal therefore needs one payment journey that can route a liability to the correct law. Users should not assume that selecting the newest Act is always correct merely because the payment is made after April 2026.
The controlling question is the period and nature of liability. Tax relating to FY 2025-26 or an earlier year continues in the 1961 Act path even if it is paid in October 2026. Tax for Tax Year 2026-27 uses the 2025 Act path. A demand, fee, penalty or other amount should be matched to the order or notice that created it. The document’s Act, period and section description are more reliable than habit or a browser default.
Income-Tax Act and Tax Year Selection for Challan Payments
| Liability | Portal Act path | Period control | Primary evidence |
|---|---|---|---|
| Income up to FY 2025-26 | Income-tax Act, 1961 | Correct assessment year or notice year | Return, computation, order or notice |
| Income for Tax Year 2026-27 onward | Income-tax Act, 2025 | Correct tax year | Computation and current-year obligation |
| Old demand paid after 1 April 2026 | Usually 1961 Act where demand arises under it | Year shown in demand | Outstanding-demand record/order |
| TDS/TCS or other remittance | Use the category and law presented for that obligation | Deduction/collection period and TAN/PAN | Deduction register and statutory return |
A payment date does not by itself determine the governing Act. For example, advance tax paid in December 2026 for Tax Year 2026-27 belongs to the 2025 Act path, whereas self-assessment tax paid on the same day for AY 2026-27, corresponding to FY 2025-26, belongs to the 1961 Act path. Teams should add the Act and period to the payment approval note before generating the CRN.
Generating the Correct Challan Reference Number (CRN)
The official e-Pay Tax guidance treats the Challan Reference Number as mandatory for the payment journey. A taxpayer can generally access the service after login and, for supported payments, through the pre-login route using validated identifiers. The user selects the payment category, period and tax breakup, enters the amounts and then chooses a payment mode. The system creates the CRN that identifies the payment instruction.
PAN, Assessment Period, Tax Type and Amount Checks
- PAN or TAN and taxpayer name displayed after validation.
- Income-tax Act path: 1961 or 2025.
- Assessment year or Tax Year, as applicable.
- Major payment category and minor head, such as advance tax, self-assessment tax, tax on regular assessment, fee or demand.
- Breakup among tax, surcharge, cess, interest, penalty and fee.
- Total amount and selected bank or payment mode.
- CRN generation time, expiry and authorised approver.
The preparer should generate the CRN only from an approved computation or demand reconciliation. Avoid a round-sum payment when the statutory components can be identified, because the receipt’s breakup becomes part of the audit trail. Before authorisation, a second person should compare the CRN preview with the computation, notice or tax calendar. If a wrong CRN has not been paid, let it expire or discard it and generate a correct one rather than forcing payment through an inaccurate instruction.
Income-Tax Payment Modes and Transaction Completion
The portal lists online payment options such as net banking, debit card and payment gateway modes, subject to the banks and instruments currently enabled. It also provides an over-the-counter or pay-at-bank path for eligible cases, with restrictions stated in the current FAQ and rules. Availability can change, so the live list of authorised banks and charges should be checked at payment time. A bank’s successful-debit message is an intermediate result, not the final compliance evidence.
| Stage | Expected result | Control if result is missing |
|---|---|---|
| CRN created | Unique reference with validity period | Regenerate only after confirming prior CRN was not paid |
| Bank authorisation | Debit or confirmed transfer | Retain bank reference; do not immediately duplicate payment |
| Portal confirmation | Successful status and challan receipt | Use payment-history refresh and official grievance route |
| Return/demand linkage | Credit visible against correct period/category | Reconcile before filing or responding to demand |
If money is debited but the portal status is pending or failed, first preserve the CRN, bank transaction reference, timestamp and screenshot. Check payment history after the prescribed processing interval. Do not make a second payment merely to remove uncertainty unless the taxpayer has assessed the duplicate-payment risk and the deadline. The official FAQ explains that refund or reversal is not handled as a routine e-Pay Tax portal service; bank and jurisdictional processes may be relevant depending on the facts.
Downloading and Reconciling the Tax Payment Receipt
A completed payment should produce a challan receipt that identifies the taxpayer, CRN, payment date, amount and payment classification. Download it immediately and save it with the computation or demand. Compare every field to the approval note: PAN or TAN, name, Act, period, payment type, components and total. The bank statement and challan should also agree on amount and date.
For a return payment, record the challan identification in the working papers and confirm that the return utility recognises the credit. For a demand, use the outstanding-demand response or other prescribed workflow rather than assuming the system will automatically close the demand. For TDS or TCS, reconcile the payment with the statement and deductee records. A receipt in the wrong year can remain economically paid but procedurally unusable for the intended obligation until corrected.
Income-Tax Challan Corrections and Available Remedies
The portal’s challan-correction service allows eligible taxpayers to request correction of specified attributes of certain challans. The available fields, eligible challan types, combinations and time limits are controlled by the current user manual and system. Common problem areas include assessment year, major head, minor head and amount allocation. A taxpayer should read the live correction options before promising that a mistake can be fixed online.
Start with the payment history entry and the original receipt. Select only the field that is legally and technically eligible, upload or retain supporting evidence where required, submit the request and track its status. Some changes may require the jurisdictional assessing officer or another process. A correction request is not a device to move one taxpayer’s payment to another PAN or to obtain a refund. Material classification errors should be escalated early, particularly when a return or appeal deadline depends on the credit.
Maker–Checker Controls for Corporate Tax Payments
- Tax team prepares a signed payment note identifying liability, Act, period, category and component breakup.
- Maker enters the data and exports or screenshots the CRN preview without completing bank authorisation.
- Checker compares the preview with the computation, notice and ledger and records approval.
- Authorised user completes payment through the selected bank channel.
- Maker downloads the challan and matches bank debit, portal status and statutory obligation.
- Reviewer confirms credit in the return, demand or TDS/TCS workflow and closes the control item.
Access rights should be separated where transaction values are material. Credentials and one-time passwords should not be shared. The organisation should maintain a payment register with CRN, challan number, Act, period, tax type, amount, payment date, bank reference, purpose, preparer, approver and linkage status. This register helps detect duplicate, unused and misclassified payments.
Avoiding CRN, Tax Head and Assessment Period Errors
The highest-risk error is choosing the law based on the calendar date rather than the liability period. Other recurring errors are selecting advance tax instead of self-assessment tax, using the wrong year, combining unrelated demands, entering only the tax amount while omitting computed interest, and treating a bank debit as final proof. Browser refreshes during payment can also lead to repeated attempts. Each issue is preventable with a preview, independent check and post-payment reconciliation.
The transition to the 2025 Act changes labels and statutory references, but it does not remove the need to preserve historical liabilities under the 1961 Act. A controlled process should therefore keep both vocabularies visible for several years. Training material, ERP fields and payment request forms should capture both assessment year and Tax Year where relevant, with a clear rule that only the applicable one is used for the actual payment.
Frequently Asked Questions
Which Act should be selected for FY 2025-26 tax paid in October 2026?
Use the Income-tax Act, 1961 path because the liability relates to FY 2025-26, subject to the exact payment category and notice.
When is the Income-tax Act, 2025 path used?
The portal states that it applies for Tax Year 2026-27 onward.
Is a CRN mandatory?
The official e-Pay Tax guidance requires a Challan Reference Number for the payment journey.
Does a bank debit prove successful tax payment?
No. Download the portal challan and reconcile its classification and status with the bank debit and intended liability.
Can every challan error be corrected online?
No. Eligible fields, challan types and time limits depend on the current correction service; some matters may require jurisdictional action.
Can the e-Pay portal issue a refund for a duplicate payment?
The current FAQ does not treat refund or reversal as a routine e-Pay Tax portal function. Follow the applicable bank, return or jurisdictional process.
What records should a business retain?
Keep the approved computation or demand, CRN preview, challan receipt, bank reference, correction request if any and evidence that the credit linked to the intended obligation.
Key Takeaways
- Select the Act from the liability period, not merely the payment date.
- Use the 1961 Act path through FY 2025-26 and the 2025 Act path from Tax Year 2026-27 onward, subject to the exact liability.
- Review PAN/TAN, period, payment head and component breakup before generating or paying a CRN.
- Treat the portal challan and correct credit linkage—not only a bank debit—as completion evidence.
- Use the official correction workflow promptly, recognising that not every error is eligible online.
Source Links
- Income Tax Department — e-Filing Portal and Integrated Payment Module — https://www.incometax.gov.in/iec/foportal/
- Income Tax Department — e-Pay Tax FAQs — https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/e-pay-tax-faq
- Income Tax Department — e-Pay Tax User Guidance — https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/e-pay-tax
- Income Tax Department — Tax Payment Modes — https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/tax-payment-modes-under-e-pay-tax-UM?mobile-app=1
- Income Tax Department — Create Challan Form (CRN) — https://www.incometax.gov.in/iec/foportal/help/create-challan-form-crn
- Income Tax Department — Challan Correction Request Manual — https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/challan-correction-request-UM
- Income Tax Department — Income-tax Act, 2025 as amended — https://www.incometaxindia.gov.in/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf
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Disclaimer: This article is for general educational and editorial purposes and is based on official material checked on 19 October 2026. The correct Act, period, payment category, mode, correction process and tax consequence depend on the liability, notice, taxpayer status and current portal functionality. Readers should verify the live portal guidance and applicable law and obtain professional advice before acting. TaxGuru accepts no responsibility for any loss, liability or consequence arising from reliance on this article. Income-tax payment procedures are sensitive to the exact assessment year or tax year, taxpayer identifier, applicable legislation, nature of demand, minor head, payment category and the status of the challan. Selecting a superficially similar option may lead to incorrect credit or require a separate correction or reconciliation process. A generated Challan Reference Number does not by itself prove that money was successfully paid or that the payment has been correctly mapped to the relevant liability. Users should retain bank confirmations, payment receipts, CRN references, CIN details where issued, transaction timestamps and screenshots of any reported error. Portal layouts, accepted payment channels, refund or correction procedures and departmental instructions can change without this article being updated. Special care is needed where a notice, outstanding demand, appeal, self-assessment liability or time-sensitive statutory payment is involved. Before relying on any procedural description, check the live Income Tax Department portal, the operative instructions and the correct law for the period concerned. Qualified tax advice may be needed for misallocated payments, disputed demands, failed transactions and interest exposure. TaxGuru does not operate the payment portal, guarantee a successful transaction or accept responsibility for missed deadlines, incorrect selections, interest, penalties, costs or reliance losses.
