Facility of Income Tax Payment Through ATMS by Union Bank of India Launched
The Minister of State for Finance Shri Namo Narain Meena launched facility of Income Tax payment through ATMs by Union Bank of India here today. Senior officials from Ministry of Finance including Shri Sunil Mitra, Revenue Secretary, Shri Shashi Shekhar Sharma, Secretary, Financial Services, Shri Sudhir Chandra, Chairman, Central Board of Direct Taxes (CBDT) and Chairman and Managing Director of Union Bank of India, Shri M.V.Nair were present among others on the occasion.
Launching the facility, the Minister of State for Finance Shri Namo Narain Meena said that coming together of CBDT and Union Bank in providing ATM based payment of income tax is an excellent convenience for people to pay tax. He said that technology has revolutionized the way we conduct many of our financial and other transactions. Shri Meena said that the Government is committed to leverage on the technology to bring greater transparency and accountability in handling of financial resources. With Core Banking Technology enabling anywhere branch banking across the country, it has become possible to ensure real time transfer of funds and monitor its utilization on an ongoing basis, the Minister added. He said that the large amount of resources we have committed for uplifting the socio-economic status of our rural and urban poor through schemes like Mahatma Gandhi National Rural Employment Guarantee Scheme, Sarva Shiksha Abhyan, National Rural Health Mission and such other flagship program. He said that it will need similar involvement from banks, to ensure timely and transparent transmission of funds and monitoring facility. Only then the objective of ensuring the socio-economic transformation will truly take place, the Minister added. The Minister of State Shri Meena said that income tax constitutes nearly 22% of the revenue to the Government and hence forms a significant part of our resources in ensuring sustainable growth. He said that greater compliance can be achieved if we give greater convenience and speed in handling of tax payment. The Minister of State for Finance Shri Namo Narain Meena said that today’s initiative is a step in that direction which together with internet payment facility already receiving popular support, will make tax payment and tax compliance a matter of great convenience to our people. He said that implementation of income tax payment on ATMs is expected to go a long way in providing easier tax administration for both government and tax payers.
Speaking on the occasion, Chairman cum Managing Director, Union Bank of India Shri M.V.Nair said that payment of income tax through ATM is yet another fulfillment of the brand promise of the Bank to provide choice of channel to customers for undertaking various transactions. He said that Customers of Bank, after one time registration at bank’s portal, will be able to make their income tax payments on ATMs. He said that they will be able to generate their challan on Bank’s portal. Registration for Income tax payment will also be extended through Bank’s branches, Shri Nair added.
Union Bank of India has a network of 2600 ATMs and a Card base of 6.5 million. Bank offers value added services like bill payment, mobile recharge etc. through its ATMs. Bank also has implemented solar powered Biometric ATMs for rural segments. Bank has planned to take its ATM numbers to 5,000 by end of March’12. Bank has the distinction of being the only Bank to offer nine regional language screens on its ATMs
Bank is extending a variety of online tax payment to its customers. These include direct taxes, central excise, service tax, customs, DGFT and commercial tax services to State government like U.P., M.P., Rajasthan, Chattisgarh, A.P., Karnataka, Orissa etc. Bank will also actively promote the usage of electronic mode for Customs, Port charges and Railway freight payments. During the financial year, Bank customers made over 3.39 lac Income Tax payment transactions aggregating to a value of Rs.5115.20 crores through online payment from our bank. This has shown a quantum jump from 2.44 lakh payments aggregating to Rs.3846 crores last year. With the addition of ATM, the online payment facility and their numbers are expected to go up substantially.
Customers with Union Bank debit card desirous of availing the facility have to register once their details on the bank’s web portal. The PAN/TAN number is validated by the website using the NSDL site. Customer when they log in to the ATM and selects the Income Tax menu, it will display the PAN number and will ask them to input the Income tax amount with Education Cess, item wise details of any other amount they want to include in the tax payment. On confirmation the tax amount will be debited to their account and customer will be issued receipt containing CIN number. Customers on the next day can log in to the web portal of the bank and by giving their CIN number can print the challan for their records.
Bank has one focal point branch for all electronic Direct tax payments. Funds towards payment of Income Tax are pooled at focal point branch and remitted to Nodal Government treasury branch on T+1 basis. The Nodal Branch remits the funds on T+1 basis to RBI and the tax payment electronic data to NSDL and CBDT on T+1.