IDFC FIRST Bank has completed integration with the Central Board of Direct Taxes payment gateway, allowing taxpayers to pay income tax and other direct taxes through UPI, credit and debit cards, net banking, and physical bank branches. This makes IDFC FIRST Bank an authorised collection bank for CBDT, expanding the number of channels available for direct tax remittance across India and adding a private sector bank to the government's tax collection network.

Authorised tax collection banks are institutions designated by CBDT under the Income Tax Act to receive direct tax payments on behalf of the government. These banks connect to the Tax Information Network (TIN), operated by NSDL e-Governance, which routes payments to the government's account and issues taxpayers a challan as proof of payment.

Historically, the State Bank of India and a handful of public sector banks dominated CBDT collection. Over time, RBI and the government have expanded the network to include private banks, improving reach and reducing congestion during advance tax deadlines (June 15, September 15, December 15, and March 15).

For a bank, joining this network has both regulatory and commercial significance. Regulatory: the bank must meet RBI's standards for payment system integrity, cybersecurity, and fund settlement. Commercial: float income accrues between collection and remittance to government, and the bank gains increased transaction volume and customer engagement.

For aspirants, the key concept is the distinction between CBDT (direct taxes — income tax, corporate tax) and CBIC (indirect taxes — GST, customs). Payment infrastructure for direct taxes flows through authorised banks and TIN, whereas GST flows through a separate GSTN ecosystem. Confusing these two is a common distractor in MCQs.