SUMMARY
The feature will enable individuals as well as businesses to pay self-assessment and advance tax directly from within the app without logging into the tax portal
PhonePe has partnered with digital B2B payments and service provider PayMate to enable this feature
The fintech giant is on a spree of new launches and has announced new services like account aggregator services, a payment gateway, a merchant lending marketplace over the last few months
Continuing its spree of new launches, fintech giant PhonePe on Monday (July 24) announced the launch of ‘Income Tax Payment’ feature to enable individuals as well as businesses to pay self-assessment and advance tax directly from within the app.
This eliminates the need to log in to the tax portal.
PhonePe has partnered with digital B2B payments and service provider PayMate to enable this feature.
With this new feature, users can choose to pay their taxes using their credit card or UPI. With credit card payments, users also get a 45-day interest-free period and earn reward points on their tax payments, depending on their bank, the company said in a statement.
Once the payment has been made, taxpayers will receive a Unique Transaction Reference (UTR) number as an acknowledgement within one working day. The challan for the tax payment will be available within two working days.
“Paying taxes can often be a complex and time-consuming task, and PhonePe is now offering its users a hassle-free and secure way to fulfill their tax obligations. We believe that this will transform the way our users pay taxes as we have now made the process both simple and easy,” Niharika Saigal, head of bill payments and recharge business at PhonePe, said.
PhonePe, founded in December 2015 by Sameer Nigam, Rahul Chari and Burzin Engineer, claims to have more than 400 Mn registered users. The app is the largest UPI app in India by user base and market share. It processed 446.14 Cr UPI transactions worth INR 7.46 Lakh Cr in June 2023.
The fintech decacorn, which has raised $850 Mn so far in 2023, accounted for 47.79% of UPI transactions by volume and 50.53% of UPI transactions by value.
The fintech giant has launched a number of products over the past few months such as Account Aggregator (AA) services, a payment gateway, a merchant lending marketplace, a point-of-sale (PoS) device and UPI Lite.
