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Challan 280 – How To Pay Income Tax Online with Challan 280

Updated on: 31 Mar, 2022 04:58 PM

Challan 280 is the 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'll need to submit challan 280. If you choose the offline option, you must take the form to a selected bank location and make the payment there. If you've chosen to make the payment online, you'll need to go to the TIN NSDL website to complete the transaction. In this guide, we will explain the steps for the payment of income tax using government portal i.e. TIN-NSDL.

What is the meaning of online tax payment?

Earlier, submitting tax returns by mail took a significant amount of time and paperwork, making the procedure quite cumbersome. As technology progresses, this task can be completed online, saving time, money, and effort.
The Income Tax Department has launched an e-tax system that allows you to pay your taxes online by filling out the required documentation, making the procedure faster and easier.

Steps to Pay Income Tax Online for FY 2021-22 (AY 2022-23)

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

Step 1: To pay taxes online, you need to login to > Services > e-payment : Pay Taxes Online or click here on the tab "e-pay taxes" on the website. Provide proper link of e-payment

Step 2: Go to the option “CHALLAN NO./ITNS 280” click on the “Proceed” button. Income Tax Network website

Step 3: Fill the Challan No./ITNS 280 Details. Please keep in mind:

  • Tax Applicable: Select option (0021)INCOME-TAX (OTHER THAN COMPANIES) in case of individuals.
  • Type of Payment: Select the relevant tax payment. This table will help you determine the applicable option.
    Type Of Payment Applicability
    (100) Advance Tax It is required to be paid during the financial year when your estimated tax liability is more than Rs 10,000. However, salaried employees are not mandatorily required to pay advance tax on salary income, as their TDS is already deducted.
    (102) Surtax This option is rarely used at the time of making the tax payment.
    (106) Tax on Distributed Profit It is required to be paid by the companies on the dividends.
    (107) Tax on Distributed Income It is applicable in the case of the Buyback of shares by the Company from the Shareholders. Commonly, this is applicable when Mutual Fund distributes the Income to the Unitholders.
    (300) Self Assessment Tax It is the tax that you pay after the end of the F.Y., but before filing your tax return.
    (400) Tax on Regular Assessment It is to be paid when you get a demand notice from the Tax Department. This is normally used after the order passed under scrutiny assessment or demand under the intimation received as per section 143(1).
  • Mode Of Payment: Choose how you want to pay using your debit card/net banking. Select the bank from the drop-down menu. Mode Of Payment
    Mode Of Payment
  • Permanent Account No: Enter the PAN No. of the taxpayer.
  • Assessment Year: Carefully select the year for which you are paying taxes. (Assessment year simply means the year in which the assessment of the income of an assessee for the previous year is carried out in order to determine the tax)
  • Contact Details: Enter taxpayer’s address, email id and mobile no.
  • Captcha Code: Enter Captcha Code and click on the “Proceed” button.

Step 4: Then a confirmation window with a summary of your details will be shown. Re-check all your details carefully & then click on the “Submit To The Bank” button and then click on the “Edit” button if required. challan 280

Step 5: You’ll be redirected to the Net Banking Page. Login to your account.
Here, you need to enter your tax payment details like Tax, Surcharge, Interest etc. However, you can leave surcharge, education cess, interest and penalty blank. Click on the “Make Payment” option.
Make Payment

Step 6 : Once the payment is cleared, Challan 280 will be generated. This challan acts as a receipt of the payment of the tax done by you. While filing your ITR, you need to enter challan details like Amount, BSR Code, Challan Serial No. under the prepaid taxes column. challan details

Offline Income Tax Payment steps for FY 2021-22 (AY 2022-23)

The instructions to utilise Challan 280 offline are as follows.

Step 1: To use the offline mode, you must first download challan 280 from the internet (available on the income tax website).
Step 2: Enter information such as your PAN, assessment year, residence address, email address, and cellphone number.
Step 3: Take the amount of tax you are obliged to pay, together with the completed form, and physically go to the bank to make a payment for your income tax.

Tip: Keep the tax receipt properly. You can also verify the amount of 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 payment of taxes. So, take note of these points while paying taxes:

  • Select the correct AY: Many people make mistakes at the time of selection of the assessment year. They often confuse the financial year with the assessment year. Remember assessment year is a year succeeding the financial year.
  • Choose the right tax code: Often people choose the wrong code under “tax applicable” and “type of payment”.If you select the wrong code then tax payment 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 amount of taxes paid by checking your Form 26 AS.Generally it takes 10 -15 days for data to be updated in Form 26 AS.

We hope our guide has helped you in the online payment of your taxes. At Tax2Win, it is our constant effort to simplify return filing procedures. 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.

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 in a bank as mentioned in the above section.

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

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

Q- I misplaced my counterfoil. What should I do?

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

Q- What should I do if my bank name is not visible on the NSDL E-gov website?

Kindly contact the TIN helpline centre at 020-27218080 or you can also send an email at [email protected] (Please indicate the subject of the mail as Online Payment of Direct Tax– Bank Name is not present).

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 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 that occurred during the tax payment.
Step 5: You must also file a Section 154 correction of return.
Step 6: If the AO is convinced by your rectification request, 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, or after completing the transaction, you encounter any error on the banking site r or got disconnected before generating Taxpayer counterfoil, then instead of doing the same transaction again, kindly check your account. If the account has been debited, then contact your bank for the taxpayer’s counterfoil.

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.