Rule 333: Electronic tax and related payments
Rule 333 requires companies, and non-company persons to whom section 63 applies, to pay tax, interest, fee and penalty electronically from the rule’s commencement. It defines electronic payment as authorised-bank internet banking or credit/debit card payment.
Official notified Income-tax Rules, 2026Need advice on Rule 333?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
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Bare law
Rule 333 - Electronic payment of tax, interest, fee and penalty
(1) The following persons shall pay electronically the tax, interest, fee and penalty on or after the date of commencement of this rule:— (a) a company; and (b) a person (other than a company), to whom the provisions of section 63 are applicable.
(2) For the purposes of this rule,— (a) "pay electronically" shall mean, payment by way of— (i) internet banking facility of the authorised bank; or (ii) credit or debit cards; and (b) the word "tax" shall have the meaning assigned to it in section 2(106).
Introduction
Payment method, amount and due date are separate compliance questions. This rule answers the method question for the covered persons; the underlying Act provisions still determine what must be paid and when.
Rule breakdown
Check whether the payer is covered
Identify whether the taxpayer is a company. If not, determine whether section 63 applies; do not assume that every individual or every business is covered by the second limb merely from its legal description.
Choose a compliant payment route
Use a method within the rule’s definition of electronic payment. Confirm the actual authorised-bank or card facility available through the official payment process before making a payment.
Keep a clear payment trail
As a practical control, check the taxpayer identity, payment category and tax-year allocation before authorising payment. Retain the challan or acknowledgment and reconcile the payment with the books and tax records. These record checks support compliance; they are not additional conditions stated in Rule 333.
What the rule does not change
Rule 333 specifies who must use electronic payment and the defined modes. It does not determine the amount due, grant extra time or remove interest or penalty otherwise arising under the Act.
Key takeaways
Companies are covered
The company limb is stated separately, without a turnover qualification in this rule.
Other section 63 persons
The second limb covers non-company persons to whom section 63 applies.
Defined electronic methods
The rule specifies authorised-bank internet banking and credit or debit cards.
Practical checklist
- Identify company status or the applicable section 63 requirement.
- Check taxpayer and payment particulars before authorisation.
- Retain and reconcile the payment acknowledgment.
Avoid
- Do not treat an electronic-payment requirement as a deadline extension.
- Do not assume a failed or pending payment has discharged the liability.
FAQs
Does the rule apply only to companies?
No. It also covers a person other than a company to whom section 63 applies.
What counts as electronic payment under the rule?
Internet banking through an authorised bank, or credit or debit cards, as set out in sub-rule (2)(a).
Does Rule 333 set the tax payment deadline?
No. The applicable charging and payment provisions determine the liability and due date; this rule concerns the required payment method.