PhonePe, a digital payments and fintech company, announced a facility to pay income tax through its app.

Individuals and businesses can use the program to pay self-assessment and advance tax using UPI or credit card without entering into the income tax system, according to PhonePe.

Within two working days, the funds will be credited to the tax portal.

By logging onto the app and tapping the income tax icon, users can pay their taxes.

They must next select the type of tax to be paid, the assessment year, and the information of their Permanent Account Number (PAN).

Users will be able to pay using their preferred means of payment after entering the total tax amount.

Taxpayers will receive a Unique Transaction Reference (UTR) number as an acknowledgement within one working day of paying the tax, and the challan will be available within two working days, according to PhonePe.

Niharika Saigal, Head of Bill Payments and Recharge Business at PhonePe said, "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...this will transform the way our users pay taxes as we have now made the process both simple and easy."

PhonePe teamed with PayMate to create the functionality, which allows customers to pay their income tax using either a credit card or UPI. When it comes to credit card payments, consumers should be given a 45-day interest-free period as well as reward points on their tax payments, with the reward program changing between banks.

Following payment completion, taxpayers will be given a Unique Transaction Reference (UTR) number as confirmation of tax payment. Furthermore, the UTR is scheduled to be available within a day, whereas the challan is generated within two working days.

The Walmart company, founded in 2015, was recently separated from its e-commerce sibling Flipkart. PhonePe has about 50 crore registered customers and conducts 45 percent of Bharat Bill Pay System (BBPS) transactions. In 2017, the company became a fintech, launching mutual funds and insurance products.