Karnataka Bank Empowers Customers with Direct Taxes Payment Facility

Mangaluru, December 26: Karnataka Bank, headquartered in the city, has introduced a new facility that allows its customers to pay direct taxes, including income tax and advance tax. This development was announced in a bank release issued on Tuesday.

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Existing Online Remittance Services

The bank already provides online remittance facilities through the Icegate portal for Customs duty payments and the GSTN portal for goods and service taxes payments. Additionally, it offers over-the-counter payment services on behalf of the Central Board for Indirect Taxes and Customs (CBIC).

Authorization by Reserve Bank of India

Karnataka Bank received authorization from the Reserve Bank of India (RBI) to collect direct and indirect taxes on behalf of the Central Board of Direct Taxes (CBDT) and CBIC. This authorization was granted based on the recommendation of the Controller General of Accounts (CGA), Ministry of Finance.

Bank's Commitment to Government Businesses

H Srikrishnan, the bank's CEO and managing director, stated that since being appointed as an agency bank by the RBI, Karnataka Bank has actively engaged in government businesses. He sees this as the beginning of a journey to undertake government business that will eventually expand to other Central and state government departments.

Enhancing Banking Experience

Sekhar Rao, the bank's executive director, highlighted the significance of enabling income tax payments through the bank's platform. He believes that this initiative enhances the overall banking experience for customers and aligns with the bank's vision of leveraging technology to simplify financial transactions.