The optional scheme of electronic payment of taxes for income-tax payers was introduced in 2004. With a view to expand the scope of electronic payment of taxes, it is proposed to make the scheme mandatory for the following categories of tax-payers:-

(i) All corporate assesses;

(ii) All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act are applicable.

2. The scheme of mandatory electronic payment of taxes for income-tax payers is proposed to be made applicable from 1st April, 2008.

3. Tax-payers can make electronic payment of taxes through the internet banking facility offered by the authorized banks. They will also be provided with an option to make electronic payment of taxes through internet by way of credit or debit cards.

Mandatory electronic payment of taxes expands to corporate taxpayers and those under audit provisions, permitting online banking and card payments. The scheme requires electronic payment of income taxes by all corporate assesses and by non-corporate assesses subject to statutory audit, effective from 1 April 2008. Payments are to be made through internet banking offered by authorized banks or via internet using credit or debit cards, converting the earlier optional electronic payment arrangement into a mandatory compliance obligation for the specified taxpayer categories.