The Income Tax Department has amended the online tax form used for paying equalization levy to include e-commerce players based outside India. This would bring more than two dozen non-resident online retailers supplying goods and services under the purview of equalization levy. Introduced in Union Budget 2020-21, the equalization levy imposes a 2% tax on digital transactions conducted in India by foreign companies. It came into effect on 1st April 2020 and the first installment is due for payment on 7th July 2020.

The IT department has revised the challan ITNS 285 – used to pay equalization levy online – to reflect this change. The amended form now adds "e-commerce operator for e-commerce supply or services" under 'Type of Deductor'. The challan also seeks mandatory Permanent Account Number (PAN) of the deductor. A very significant change in the challan ITNS 285 is that it now includes the 'Outside India' option while seeking address details of payees, allowing foreign e-commerce players to enter their details and make the due payments.