What is E-filing and E-payment? Difference between E-filing & E-Payment

“What is E-Filing?”, “What is E-Payment?”, And the Difference Between E-Filing and E-Payment


E-filing is the process of electronically filing a tax return, and e-payment is the process of electronically paying taxes. Using the e-payment and e-filing tool, the taxpayer can complete his tax payment and return filing obligations in a simple and timely manner. This article mainly focuses on the difference between E-Filing and E-payment. But before understanding the difference between these two terms, Let’s understand “What is E-filing?” And “What is E-Payment?”

What is E-Filing?

Electronic income tax filing is referred to as e-filing. The procedure of electronically filing your ITR for a given year is known as e-filing. This implies you will not have to go to the nearest ITR office to file your returns any more. Rather, you use the internet for filing your Income Tax Return (ITR).

Advantages of ITR E-Filing

  • Easy Access to Documents


E-filing of returns prompts the user to upload the required papers, resulting in the creation of a database that can be viewed at anytime. There was no such provision in the manual filing of returns.


  • Provide Convenience to the Taxpayer


All, or at least the majority, modern-day systems, including income-tax, provide convenience to their users. Manual filing necessitates a trip to a crowded tax office, making the procedure tedious and time-consuming for the taxpayer. E-filing of returns, on the other hand, relieves stress by allowing taxpayers to file returns from the comfort of their own homes.


  • Speedy Verification Process


Previously, income-tax returns were sent to CPC Bengaluru, which was in charge of the verification process. The e-verification tool can now be used to verify income tax returns online. The assessee must, however, have an Aadhaar card in order to use the e-filing option.


  • Benefit at the time of Loan Adjustment


Individuals can carry forward losses to offset future taxable income under existing income tax laws. This can be repeated for up to eight years in a row. You can use your income tax returns to create a case and carry forward/adjust your losses against future taxable income if you have them.

Process for ITR E-Filing

  • Login to the Income Tax E-filing Portal.
  • From the e-file menu click on the Income Tax Return link.
  • Select assessment year, ITR form number, and submission mode.
  • Once submission mode is selected online, Click on Continue.
  • Read the instructions carefully and complete all of the fields on the Online ITR Form that are appropriate and mandatory.
  • On the ‘Taxes Paid and Verification’ page, select the appropriate Verification option.
  • Select any of the e-verify options from the portal.
  • Once this process is done, click on Preview and Submit the ITR form.
  • Later, using the ‘My Account > e-Verify Return’ option or by providing a signed ITR-V to CPC, the filed ITR should be confirmed.
  • Now users can view the Uploaded ITRs.

What is E-Payment?

Online payment systems are what they are called. Debit and credit cards, direct bank deposits, and e-checks are the most common e-payment methods; however, additional e-payment methods such as e-wallets, cryptocurrency, and bank transfers are gaining popularity.

Advantages of E-Payment

  • Simpler and Speedier


Electronic Payments are less expensive, easier, faster. E-payments have shown to be particularly beneficial for international transactions. People are virtually at peace with electronic payments and online buying. In this day and age, accepting online payments is a must for any business.


  • Effective tool for cost saving


You must first partner with a card processor if you wish to offer payment services to your clients. In exchange for providing you with a payment gateway for processing, the processor will charge you a set fee. This is a hefty price tag. If you use an electronic payment system in your firm, on the other hand, you will not have to pay such excessive fees. All you have to do is pay your service provider a certain monthly fee.


  • Payment can be made at consumer Convenience


E-payments allow users to pay online at anytime and from any location, making them conveniently accessible and convenient. It is straightforward to connect online payment solutions with businesses because numerous payment processing solution providers offer various sorts of solutions.


  • Payment Security


Customers and merchants may rely on online payment solutions because they contain security, risk management, and anti-fraud tools.

Process for Paying Tax Online

  • Login to the TIN NSDL Website.
  • Go to services, and click on E-Payment.
  • Select the appropriate challan, For example: Form 26QB, ITNS 282, or any other.
  • Enter your PAN / TAN (if applicable) and other required challan information, such as the accounting head under which the payment is made, the tax payer’s address, and the bank through which the payment is to be made, among other things.
  • A confirmation page will appear when the data has been submitted. If the PAN / TAN is valid according to the ITD PAN / TAN master, the entire name of the taxpayer will appear on the confirmation screen.
  • The taxpayer will be sent to the bank’s net-banking site after confirmation of the data entered.
  • The taxpayer must use the user id and password issued by the bank for net-banking purposes to access the bank’s website and submit payment information.
  • A challan counterfoil with the CIN (Corporate Identification Number), payment information, and bank name via which the e-payment was made will be displayed after a successful payment. This counterfoil serves as proof of payment.

E-Filing Vs E-Payment Key difference

E-filing refers to the process of submitting income tax returns electronically, on the other hand, E-payment refers to the process of paying taxes electronically (through net banking or any other mode). Using the e-payment and e-filing tool, the taxpayer can conveniently and swiftly fulfil his tax payment and return filing duties.


It is simple for a taxpayer to file returns at their convenience time using E-filing and E-payment. When a payment or filing is made via an electronic manner, it is referred to as e-filing and e-payment. It is not only beneficial to the taxpayer, but it is also beneficial to the IT Department because it relieves the Income Tax Assessing Officer of the load of paper filing.

Zarana Mehta: Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.
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