ITR Filing
ITR filing deadline missed?
Don't Worry you still have a chance!

File a Belated ITR for AY 2023-24

File ITR Now

*Late fee applicable

ITR Filing

Online e-Tax Payment – How To Pay Income Tax Online with Challan 280?

Updated on: 14 Sep, 2023 01:13 PM

Paying taxes on time is legal and important for the nation's growth. Digitization has brought changes in the way we file income tax, too. The income tax payment facility has been migrated from “OLTAS” to “e-Pay Tax” facility on the e-filing portal.

Challan 280 is a way to pay your advance tax, regular assessment tax, self-assessment tax, additional charges, etc., online. It is also referred to as ‘ITNS 280’.

Whether you're paying your taxes online or offline, you must submit challan 280. If you choose the offline option, you must take the form to a selected bank location and pay there. If you've chosen to pay online, you must go to the Income tax official website to complete the transaction.

Note:- Direct tax payments facility has been migrated from OLTAS 'e-payment: Pay Taxes Online' to the e-Pay Tax facility of the E-Filing portal. Users are advised to navigate to the 'e-Pay Tax' portal of the Income Tax Department at to make direct tax payments.

What do you mean by online tax payment?

With the advancement of technology, the traditional method of mailing tax returns, involving paperwork and time, became cumbersome. To simplify tax payments and save time, money, and effort, online tax payment methods were introduced. The Income Tax Department now offers an e-tax system that streamlines the process by allowing taxpayers to submit tax information online, making it faster and more convenient.

Benefits of Income Tax Online Payment

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Verification: By visiting the website of the Tax Information Network, you can verify if the IT department has received the payment or not.

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.

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

How to Pay Income Tax Online using Challan 280?

To pay income tax online, follow the below-mentioned steps:

Step 1: To pay taxes online, visit the income tax website and click on e-pay tax under Quick Links.

To pay taxes online

Step 2: Fill in the required details like PAN and mobile numbers.

Fill in the required details

Step 3: An OTP will be shared with your mobile number.

OTP will be shared with your mobile number

Step 4: Once the OTP is verified. It will guide you to move to the following page, where you must click on Income Tax and proceed.

Once the OTP is verified

Step 5: Once you click on Income Tax, this means Challan 280.
Now, the page will direct you to make a payment. Here fill in the details like AY and the payment type from the following:-

  • (100) Advance Tax
  • (102) Surtax
  • (106) Tax on Distributed Profit
  • (107) Tax on Distributed Income
  • (300) Self-Assessment Tax
  • (400) Tax on Regular Assessment

Select ‘Self-assessment tax’ if you have any taxes due to pay while filing your income tax returns.

filing your income tax returns

Step 6: Now fill in the amount under the tax head and click on "Continue".

click on Continue

Step 7: Select the mode of payment. There are various modes of payment available net banking, debit cards, and others, as seen in the image below.

Select the mode of payment

Step 8: After payment through the selected mode, you will get proof or challan as a PDF. Download and save a copy with you for reference.

Steps to pay the due amount of Income Tax Offline

The instructions to utilize Challan 280 offline are as follows.

Step 1: To use the offline mode, you must first download Challan 280 online (available on the income tax website).

Step 2: Enter your PAN, assessment year, residence address, email address, and mobile number.

Step 3: Take the amount of tax you are obliged to pay, together with the completed form, and physically visit the bank to pay your income tax.

Tip: Keep the tax receipt properly. You can also verify the taxes paid by checking your Form 26 AS. Generally, it takes 10 -15 days for data to be updated in Form 26 AS.

Things to remember while paying taxes

It is observed that people generally make mistakes at the time of paying taxes. So, take note of these points while paying taxes:

  • Select the correct AY: Many people make mistakes while selecting the assessment year. They often confuse the financial year with the assessment year. Remember, an assessment year is a year succeeding the financial year.
  • Choose the correct tax code: Often, people choose the wrong code under “tax applicable” and “type of payment." If you select the wrong code, tax payments will not be reflected in your account with the tax department, i.e., 26AS.

Tip: Keep the tax receipt properly. You can also verify the taxes paid by checking your Form 26 AS. Generally, it takes 10 -15 days for data to be reflected in Form 26 AS.

For any help, reach out to our eCAs. For any further queries, contact us! Our experts will assist you and make taxation easy for you.

Different Types of Challan that are Applicable for Various Tax Payments

  1. 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.
  2. 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.
  3. Challan No. ITNS 282: This challan is used for the payment of Securities Transaction Tax (STT), Hotel Receipts Tax, and other taxes.
  4. Challan No. ITNS 283: This challan is used for the payment of Equalization Levy, which is a tax on specified digital services provided by non-resident companies.
  5. 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 sale of specified goods like scrap, minerals, etc.
  6. 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.

Frequently Asked Questions

Q- Is it mandatory to pay tax online?

Online income tax payment is mandatory for all companies and all non-corporate taxpayers covered in audit under section 44AB. Apart from these, all other taxpayers can also pay their taxes offline after downloading challan 280 and submitting it to a bank, as mentioned in the above section.

Q- What should I do if my bank is not authorized for e-tax?

If your bank is not authorized to make an e-payment, you can use the account of any other person whose bank is authorized to provide the same facility.

Q- I need to find my counterfoil. What should I do?

Banks provide online facilities for the regeneration of challan on their website in case the counterfoil is misplaced.

Q- What to do when you have selected the wrong assessment year while paying tax?

If you have selected the wrong assessment year then follow the below-mentioned steps:

Step 1: Even if the assessment year you selected while paying the tax is wrong, provide the payment information when filing your IT returns for the year.

Step 2: You can ask your jurisdictional assessing officer's office to fix the challan for the 'assessment year' inaccuracy. On the income tax department's e-filing website, you may find the location of the assessing officer's office. If you have just paid a challan, you can request that the bank to amend the challan within 7 days after the deposit date.

Step 3: When the assessing officer (AO) examines your returns, he will most likely issue a warning since the payment information does not match the records.

Step 4: Respond to the AO with the specifics of the problem during the tax payment.

Step 5: You must also file a Section 154 correction of return.

Step 6: If your rectification request convinces the AO, he has the authority to make the appropriate modifications in your return. He will make the necessary modifications to the IT returns and shut it off after he has approved your request.

Q- What if my account gets debited twice for the same transaction?

If during the transaction you encounter any error and the amount has been debited twice, then while filing your Income Tax Return you can claim a refund for the excess tax paid from the Income Tax Department.

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.