PhonePe launches tax payment feature for users

In a move to simplify tax payments, PhonePe has unveiled its latest feature, 'Income Tax Payment,' on its app. This new addition enables taxpayers to conveniently pay their self-assessment and advance taxes directly from the app using UPI or credit card payments.

PhonePe's partnership with PayMate, a B2B payments and service provider, has made this innovative feature possible. According to Niharika Saigal, Head of Bill Payments and Recharge Business at PhonePe, this addition aims to make tax payment hassle-free and secure for users. The company believes that this feature will transform the way users fulfill their tax obligations, simplifying and streamlining the process.

One of the benefits for users is a 45-day interest-free period on their tax payments, making it easier for them to manage their finances. Additionally, users may also earn reward points based on their bank's terms and conditions, further incentivizing tax payments through the app.

After completing the tax payment process, taxpayers will receive a Unique Transaction Reference (UTR) number as an acknowledgement within one working day. Furthermore, the challan for the tax payment will be made available within two working days.

With this new feature, PhonePe aims to provide a seamless and user-friendly experience for taxpayers, making it more convenient to meet their tax obligations while also enjoying the benefits of an easy and rewarding payment process.