The Central Board of Direct Taxes has issued Circular No. 5/2008 dated 14th July 2008 clarifying the following things -
With a view to facilitating electronic payment of taxes by different categories of taxpayers, it is hereby clarified that, an assessee can make electronic payment of taxes also from the account of any other person. However, the challan for making such payment must clearly indicate the Permanent Account Number (PAN) of the assessee on whose behalf the payment is made. It is not necessary for the assessee to make payment of taxes from his own account in an authorized bank.
Further, it is also clarified that payment of any amount by a deductor by way of tax deducted at source (TDS) or tax collected at source (TCS) shall fall within the meaning of `tax' for the purpose of the rule 125 of the Income-tax Rules, 1962.