Online e-Tax Payment – How to Pay Your Income Tax Using Challan 280?

What is Challan 280?

Challan 280 is a type of income tax form that is used by persons to make payment of income tax on payment of self-assessment tax, advance tax, surtax, tax on distributed income and profit, and regular assessment tax. Challan 280 is also known as ITNS280. Whether paying your income tax online or offline, it is important to use challan 280 for each transaction.

To make the payment online, you need to visit the TIN NSDL website to finish the transaction. If you have opted for the offline method, you need to visit the specific bank branch along with the specified form.

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How to pay income tax online?

Step 1: To begin, go to the official Income Tax portal at https://www.incometax.gov.in/iec/foportal/. Then, find and select "e-Pay Tax" from the menu on the left side of the screen, as shown in the image below:

Step 2: Enter the PAN/TAN details along with your mobile number. (If you're making the payment on someone else's behalf, use their PAN number; however, you can input your mobile number regardless of the payer). Subsequently, you'll receive a One-Time Password (OTP) on your registered mobile number. Enter the OTP and proceed by clicking 'continue.'

Step 3: Once you've entered the OTP, a new page will appear confirming the successful verification of your mobile number. Proceed by clicking the 'continue' button.

Step 4: On this page, you'll find multiple payment options available. If you're making an income tax payment such as advance tax or additional tax, locate the first payment box labeled 'Income Tax' and click on the proceed button.

Step 5: Choose the assessment year and your payment type from the drop-down menu. If you're paying additional tax, interest, or a penalty for late ITR filing, select "Self-Assessment Tax (300)" and then click on 'Continue.'

Step 6: Fill the payment amount correctly under the relevant categories.

Step 7: Choose your preferred payment method and bank to process the tax payment, then click on 'Continue'.
You can choose internet banking, debit card, credit card, RTGS/NEFT, UPI, or opt to pay at the bank counter.

Step 8: Upon clicking 'Continue,' you'll be able to review the payment details. Ensure the payment information is accurate and Click 'Pay Now' to proceed with the payment, or select 'Edit' to make any necessary changes.

Step 9: Mark the checkbox to agree to the Terms and Conditions and proceed with the payment by clicking on 'Submit To Bank'.

Step 10: Upon successful submission of your tax payment, you will receive a confirmation.
Note: Ensure that you download the challan. You will require the BSR code and Challan number to complete the return filing process.

Got stuck at any steps, contact us! Our experts will assist you and make taxation easy for you.

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How to Pay Income Tax Online Using Challan 280

• Select Challan 280: Visit the Income Tax Department's tax information network and click "Proceed" under the Challan 280 option.
• Enter Your Information:
  • Tax Type: Select "(0021) Income Tax (Other than Companies)."
  • Payment Type: Choose the appropriate payment type. For paying taxes due when filing your return, select "(300) Self-Assessment Tax." Other options include:
    • (100) Advance Tax
    • (102) Surtax
    • (106) Tax on Distributed Profit
    • (107) Tax on Distributed Income
    • (400) Tax on Regular Assessment
  • Payment Mode: Select your preferred payment method: Net banking or debit card.
  • Assessment Year (AY): Select the correct AY. For the period April 1, 2022 – March 31, 2023, the AY is 2023-24.
  • Address: Enter your complete address.
  • Captcha: Enter the displayed captcha code and click "Proceed."
• Review and Submit: Carefully review the displayed information. You will then be redirected to your bank's payment page to complete the transaction.
• Payment Confirmation: After successful payment, a tax receipt will be displayed with payment details, including the BSR code and challan serial number (located on the right side of the challan).

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Verification of Challan Tax Payment

The Income Tax Department (ITD) allows assessees to verify the status of their generated challans. This verification confirms the status of the challan. Assesses can also log in to the NSDL website to check the status of their payments. There are two ways to verify the status of a challan:

1. CIN-based view: Assesses can provide details such as the Challan Identification Number (CIN), challan tender date, BSR code of the bank branch where the payment was made, and the serial number of the challan to track its status. They can also verify the accuracy of the tax amount paid by specifying the actual amount.
2. TAN-based view: Assesses can provide their Tax Deduction and Collection Number (TAN) and the challan tender date to view the details of their Challan Identification Number (CIN). Additionally, they can specify the amount against a particular CIN to validate the amount uploaded by the bank.

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Correction of details in Challans

An assessee can request changes to the challan payment information if any errors need rectifying. The following fields can be corrected:

• Assessment Year
• Tax Deduction and Collection Number (TAN) or Permanent Account Number (PAN)
• Nature of the payment
• Major Head Code and Minor Head Code
• Total amount

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Correction of Wrong Assessment Year When Making Income Tax Payments

The assessment year is when your taxes are assessed, which is the year following the one for which you are paying taxes.

If you made a mistake selecting the correct assessment year, follow these steps:

1. When filing your IT returns, include the payment details even if the wrong assessment year was selected.
2. Request a correction from your jurisdictional assessing officer, whose details can be found on the Income Tax Department's e-filing website.
3. If you detect the mistake within 7 days of making the deposit, request the bank to correct the challan.
4. The Assessing Officer (AO) will send a notice after processing your returns, as the payment details will not match the records.
5. Respond to the notice with details of the error.
6. Under Section 154, submit a rectification request for the error.
7. If the AO verifies that your rectification request is accurate and genuine, they can make the necessary corrections in your challan, resolving the issue.

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Banks Authorised for e-Tax Payment

Presently, Axis Bank, Bandhan Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, City Union Bank, DCB Bank, Federal Bank, HDFC Bank, ICICI Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, IndusInd Bank, Jammu & Kashmir Bank, Karur Vysya Bank, Kotak Mahindra Bank, Punjab & Sind Bank, Punjab National Bank, RBL Bank, South Indian Bank, State Bank of India, UCO Bank & Union Bank of India have been enabled for making tax payment through the e-Filing portal.

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Benefits of Online e-Tax Payment

• Convenience: Online payment methods offer a high level of convenience. Taxpayers can make payments from anywhere, anytime, as long as they have an internet connection. This eliminates needing to visit a tax office or mail a physical payment.
• Time-saving: Online payment systems streamline the process, allowing taxpayers to complete their transactions quickly. It eliminates the need for manual paperwork, filling out forms, and waiting in long queues.
• Accuracy: Online payment platforms often have built-in calculators that help taxpayers determine the correct amount of tax owed. This reduces the chances of errors in calculations and ensures accurate payment.
• Instant confirmation: When making an online payment, taxpayers receive immediate confirmation that their payment has been processed. This provides peace of mind and eliminates uncertainty about whether the payment was received and credited.
• Secure transactions: Reputable online payment platforms employ robust security measures to protect users' financial information. Encryption techniques and secure servers ensure that sensitive data is transmitted and stored safely.
• Reminder notifications: Some online payment platforms offer reminder services, sending notifications to taxpayers when payment deadlines are approaching. This helps taxpayers stay organized and avoid late payment penalties.
• Verification: By visiting the website of the Tax Information Network, you can verify if the IT department has received the payment or not.

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Eligibility for e-Tax Payment

Starting from April 1, 2008, certain taxpayers are required to make their tax payments online. This mandatory requirement includes the following categories of taxpayers:

• All corporate assesses: This includes all companies, regardless of their size or type of business.
• All assesses (other than companies) to whom the provisions of section 44AB of the Income Tax Act, 1961 are applicable: This refers to non-corporate taxpayers who meet the criteria specified in section 44AB of the Income Tax Act, 1961. Section 44AB pertains to the mandatory tax audit requirements for businesses or individuals meeting specific financial thresholds.

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Documents required for paying Income Tax Online

1. Form 16
2. Salary slips and bank statement
3. Form 16A, Form 16 B, or Form 16C
4. Interest certificates issued by bank or post office
5. Form 26AS
6. Tax saving investment proof
7. Aadhaar Card
8. PAN Card
9. Home loan statement
10. Capital gain Statement

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Different Types of Challan that are Applicable for Various Tax Payments

• Challan No. ITNS 280: This challan is used for the payment of income tax by individuals and non-corporate entities. It is used for the payment of advance tax, self-assessment tax, regular assessment tax, and tax on distributed income.
• Challan No. ITNS 281: This challan is used for the payment of Tax Deducted at Source (TDS) by deductors. It is used for depositing TDS on salaries, interest, rent, commission, and other payments.
• Challan No. ITNS 282: This challan is used for the payment of Securities Transaction Tax (STT), Hotel Receipts Tax, and other taxes.
• Challan No. ITNS 283: This challan is used for the payment of the Equalization Levy, which is a tax on specified digital services provided by non-resident companies.
• Challan No. ITNS 284: This challan is used for the payment of Tax Collected at Source (TCS) by collectors. It is used for depositing TCS on the sale of specified goods like scrap, minerals, etc.
• Challan No. ITNS 285: This challan is used for the payment of Income Declaration Scheme (IDS) tax. It was applicable for a specific period and allowed taxpayers to declare undisclosed income and pay taxes on it.

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