Manual payments are getting outdated in the digital era and certain types of taxpayers are now required to mandatorily pay income tax through online modes only. However, taxpayers can still remit offline income tax payment through banks along with Challan 280. In this article, we look at the procedure for using Challan 280 to pay income tax payment in India.
Download Challan 280
Income tax payments such as advance tax, self-assessment tax, surcharge, regular assessment tax, tax on distributed profits or distributed income, and so on can be made using Challan 280. The format which should be used for Challan 280 is the following:Challan 280
Income Tax Payment using Challan 280
Though the internet penetration in India is growing, it would be correct to say that some parts of India still lack connectivity, especially the rural areas. Taking such limitations into perspective, the Government has continued to allow the offline mode of payment. Offline mode for income tax payment will continue for the foreseeable future as well, but the Government will continue to limit the taxpayers who can avail the offline tax payment facility.
Procedure for Making Income Tax Payment using Challan 280
Taxpayers who wish to pay income tax through offline modes are required to download Challan 280 from the official website of the Income Tax department. Similar to the online income tax payment process, the taxpayer must furnish the requisite details in the form such as PAN, assessment year, contact details, and so on in Challan 280. Completed Challan 280 would then be submitted to any of the designated bank branches, along with the income tax payment which can be remitted in cash, cheque or demand draft. The bank will provide a stamped counterfoil as a proof of payment.
Proof of Payment of Tax
After remitting the amount, the user will receive a challan counterfoil that contains details such as CIN (Challan Identification Number), the amount paid in tax, date of payment, and so on. The CIN is an acknowledgement for the taxes paid by the assessee. The challan must be mentioned in the return of income. It is used for any future correspondences with the income tax department, as well as during income tax returns. If a user fails to maintain a copy of the same, the assessee is permitted to approach the bank for the regeneration of challan. CIN comprises of the following:
- Seven digit BSR code of the bank branch where tax is deposited.
- Date of Deposit of tax.
- Serial Number of Challan.
- Example of CIN
Verification of Challan Tax Payment
The Income Tax department has facilitated taxpayers to verify and confirm the status of their challan. In addition to it, the facility enables them to verify whether the payment has reached the Department. Taxpayers can avail this facility by logging into the NSDL website. The status of challan can be verified in any of the following manners:
CIN Based View
The taxpayer, in this respect, can track the status of their challans by providing details such as CIN (Challan Identification Number), BSR code of Bank’s branch, challan tender date and challan serial number. Moreover, if the taxpayer specifies the amount of tax paid, the taxpayer will get a confirmation on the correctness of the amount.
TAN Based View
The taxpayer, on providing details of TAN and the Challan Tender Date range within a particular financial year, can view the details of CIN, major head code with description, minor head code and nature of the payment. Moreover, if the taxpayer specifies the amount against a particular CIN, the system will validate it with the amount uploaded by the bank.
Correction of Details
The taxpayer is entitled to request for correction in the challan payment information if the assessee feels the need for it. The following fields can be amended by the concerned bank branch:
- Assessment year
- Major and Minor Head Code
- Total Amount
- Nature of payment
Banks are provided with a period of seven days from the challan deposit date to correct details of TAN/PAN, Assessment year and amount; and three months from the challan deposit date for other fields such as Major/Minor Head/Nature of Payment.
Online Tax Payment
Online payments are processed using TIN NSDL website. The following steps can be followed by a taxpayer to pay income tax online:
Step 1:- Login to TIN NSDL website.
Step 2:- Open the link – https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Step 3:- The taxpayer should choose ‘Challan No/ ITNS 280’ among the various options provided under “Non-TDS/TCS”.
Step 4:- If the tax is being paid by a company, the first radio button (0020) Income Tax on companies (Corporation Tax) must be selected. If the tax is being paid by any other assessee such as Partnership Firms, individuals, LLP, etc, the second option (0021) Income Tax (other than companies) must be selected.
Step 5:- The taxpayer must enter the details of the PAN.
Step 6:- The taxpayer must choose the relevant assessment year, for which taxes must be remitted.
Step 7:- The taxpayer must enter details such as full name, address, contact details, types of payment (advance tax, surtax, self-assessment, etc)
Step 8:-The taxpayer needs to select the name of the bank through which he/she prefers to make the payment from the list of banks provided.
Step 9:-The taxpayer must enter the amount of tax to be remitted.
Step 10:-The taxpayer is required to click the ‘proceed’ button at the end of the page.
Step 11:-The taxpayer must verify the pertinent details and confirm the same. Any modifications can be made using the ‘edit’ option.
Step 12:- If all the details are correct, the taxpayer can click “Submit to bank” option which will direct the user to the bank’s website.
Step 13:- On submission of the details, the taxpayer may click “Calculate Tax” button, in which the aggregate amount of tax is computed.