Challan 280: Payment of Income Tax

At times one needs to pay income tax to the government for example Advance Tax, Self Assessment Tax. One can pay it through Challan 280 online or offline. This article discusses about when does one need to pay Income tax, how to pay through Challan 280, verify tax paid, how to correct details if required, how to mention it in Income Tax Return.

How does the Government collect Income Tax from an individual?

It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly. Taxes are collected throughout the financial year by three means:

  1. Voluntary payment by persons into various designated Banks. For example Advance Tax and Self Assessment Tax
  2. Taxes deducted at source (TDS) on your behalf from the payments receivable by you.
  3. Taxes collected at source (TCS) on your behalf at the time of spending.
What is Advance Tax?

If the tax payable, in a financial year, is Rs. 10,000 or more(after taking TDS  in consideration), then the tax is paid in the previous year itself. This is called as Advance Tax. Our article Advance Tax:Details-What, How, Why discusses it in detail.

  • Ist installment (30% of estimated tax) before 15 Sep,
  • IInd installment ( 60% of estimated tax) before 15 Dec,
  • Final installment (100% of estimated tax) before 15 Mar
What is Self Assessment Tax ?

If at the time of filing of return you find that you have some balance tax to be paid after taking into account your advance tax, TDS  and TCS, the short fall is to be deposited as Self  Assessment Tax.  Self assessment tax  must be deposited before filing return. For FY 2012-13 last date of filing return is 31 July 2013. In many cases one has not deposited full tax or Tax deducted at Source (TDS) has been deducted less ex: Interest on Fixed Deposit (FD)  is deducted at the rate of 10% if interest income is more than 10,000 a year. But actual tax on interest on FD is as per one’s income Slab . In such cases there is balance tax liability or due to interest u/s 234B, 234C if advance tax not paid or due to other reason. 

If you pay less than what you should pay as per your computation of tax before filing Return , your return may be treated as defective return as per Section 139(9) and may be liable to penal consequences.   You will be sent  an intimation which is a demand notice in itself. You may be charged with penalty under section 220 if the new demand is not paid within 30 days of service of notice.(Ref: TaxWorry Self Assessment Tax must be paid before filing the return)

What is Regular Assessment Tax?

Tax one needs to pay when demand is raised by Income Tax Department during assessment. Such tax is called as Regular Assessment Tax. For Ex: I am working in a company and don’t have any extra source of income.Due to some mistake company didn’t deducted tax in AY2010-11 and later I have received an intimation (actually received a demand u/s 156 ) under section 143(1) (India) to pay income tax. (Ref: Yahoo question)

How to pay Income Tax due – Advance Tax, Self Assessment Tax etc?

Tax Payment Challan, ITNS 280 Challan is used to pay Income Tax due, if any.

 What is Proof of Paying Income Tax through Challan 280?

After the taxes are paid through Challan 280,you will get a receipt or counter foil as acknowledgement for the taxes paid. Receipt has details of person paying the tax, amount, type of payment etc and Challan Identification Number (CIN) as shown in the receipt of e-payment of Income Tax below.The challan identification number has to be cited in the return of income as of tax payment. CIN can also be cited in any further queries about the tax payment.  CIN comprises of the following :

  • Seven digit BSR code of the bank branch where tax is deposited
  • Date of Deposit (DD/MM/Year) of tax
  • Serial Number of Challan
  • Example of CIN: 0000762 020208 32
Challan 280 receipt

Challan 280 receipt

When should I pay the tax?

Avoid paying the tax on last day. Quoting from Livemint’s Why paying advance tax on last day could be a problem usually if paying by cheque

If you are liable to pay advance tax by 15 September, but pay it even a day late, you would end up paying interest on the entire instalment of advance tax for a period of three months till the next due date, that is 15 December usually if paid by cheque.

Very often, such payment is made by a cheque drawn on a bank other than the bank receiving the advance tax payment. In such cases, the payment of advance tax is tendered on 15 September, but realised after 15 September. In such cases, earlier the Central Board of Direct Taxes (CBDT) had clarified that the date of tender was to be taken as the date of payment, in accordance with the Treasury Rules, and accordingly no interest was chargeable for late payment in such cases. That is why the receiving bank would normally enter both the date of tender as well as the date of realisation in the stamped copy of the challan acknowledged by the bank.

The Central Government Treasury Rules were replaced by the Central Government Account (Receipts and Payments) Rules, 1983, which provide that when the payment is made by cheque or draft, the payment shall be deemed to have been made on the date on which it is cleared and entered in the receipt scroll. Since then, the tax authorities have been trying to levy interest in such cases where the cheques have been realised after the due date of payment.Centralised Processing Centre (CPC) while processing tax returns picks up the date of payment of taxes from the Tax Information Network (TIN) server. In many cases, TIN records the date of clearance of the cheque as the date of payment and not the date of tender. 

Verifying Challan

You can verify the challan online. On receipt of the amount, receiving bank will upload the details in the Challan to Government via NSDL through its OLTAS (Online Tax Accounting System) return within 3 working days. To verify visit TIN webpage click on Challan Status Enquiry which will take you to TIN’s Challan Status Enquiry webpage. You can select either

  • CIN Based View : Where one enters CIN and amount (optional), deductor can view the following details:
    • BSR Code
    • Date of Deposit
    • Challan Serial Number
    • Major Head Code with description
  • TAN based view: By providing TAN and Challan Tender Date range for a particular financial year , the tax payer can view the following details
    • CIN
    • Major Head Code with descriprtion
    • Minor Head Code
    • Nature of Payment
    • Name of Tax Payer

If the tax payer enters the amount against a CIN, the system will confirm whether it matches with the details of amount uploaded by the bank.

If the entry is missing over here, after 3 working days [from the date of issuing counter foil], deductor should contact the Bank Branch to check the matter.

Correction of Challan?

Quoting from IncomeTax webpage Challan Correction (pdf)

The physical challans of all Direct Tax payments received from the deductors / taxpayers are digitized on daily basis by the collecting banks and the data transmitted to TIN (Tax Information Network) through link cell. At present, the banks are permitted to correct data relating to three fields only i.e. amount, major head code and name. The other errors can be corrected only by the assessing officers. Under this mechanism, for income tax payments made on or after 1.9.2011, the following fields can be got corrected through the concerned bank branch

Assessment Year, Major Head Code, Minor Head Code, TAN or PAN, Total Amount, Nature of payment ( TDS Codes )

The time window for the correction request by tax payer is as follows :

S.No Correction required in Field name Period of Correction Request(from Challan Deposit Date)
  1  TAN/PAN  7 days
 2  Assessment Year  7 days
 3  Amount  7 days
 4  Other fields (Major head, Minor head,Nature of payment)    Within 3 months

The time window for correction by the bank is 7 days from the date of receipt of correction request from the tax-payer.

Procedure of Challan correction by Assessing Officers (both physical and e-payment challans)

After the window period available to banks for challan correction, the assessee can make a request for correction to his or her assessing officer, who is authorized under the departmental OLTAS application to make such correction in challan data in bonafide cases, to enable credit of the taxes paid, to the concerned assessee.

Income Tax credited to your PAN: Form 26AS

If you are a taxpayers, you need to check your Form 26AS to ensure the tax deducted at source (TDS) is reflected correctly in the income tax records. Form 26AS is a consolidated tax statement issued under Rule 31AB of the Income Tax Rules to PAN holders. This statement will include details of:

  • Tax deducted at source (TDS)
  • Tax collected at source (TCS)
  • Advance tax, self-assessment tax, regular assessment tax etc deposited in a bank by taxpayers (PAN holders)

Any Tax paid by PAN holder should be reflected in Form 26AS. So verify Form 26AS also for Advance tax, self-assessment tax, regular assessment tax etc deposited . Our article Viewing Form 26AS on TRACES explains it in detail.

How is income tax paid such: Advance Tax , Self Assessment Tax accounted for?

While filing the income tax return one has to fill information about the Advance Tax, Self Assessment Tax paid. For example from our article Filling ITR-1 : Bank Details, Exempt Income, TDS Details one needs to the tax paid.

Tax paid accounted in Income Tax return

Related Articles:

45 Responses to Challan 280: Payment of Income Tax

  1. Virendra says:


    I changed job in December. My earlier employer had deducted X amount as Income tax, My new employer did not consider my earnings till December and hence on earnings from December to March they deducted an amount Y as income tax. Now I realized that I have paid less tax than what I should have paid. Since it is already March 26th today, can I still pay advance income tax thru Challan 280? Or should I be following a different way? Please suggest.


    • Kirti says:

      Virendra it happens to most of people who change job. Our article Changing Jobs:Take Care Of Bank Account,Tax Liability

      As you have realised that you need to pay tax which you were supposed to pay you can pay now with small penalty or later with bigger penalty.
      If you owe more than Rs.10,000(after deducting TDS) while filing your returns, you will be penalized with Interest under sections 234A , 234 B & 234 C
      Under section 234B, penalty arises when the total amount of advance tax paid along with the amount of TDS is less than 90% of the total tax liability. In such case interest is calculated at 1% per month of the amount of shortfall for time period from April to the month in which the return is filed.

      Under Section 234C, there are three components. For the first installment, the shortfall penalty is calculated for 3 months @1% p.m. Similarly, in the second installment, the shortfall penalty is also calculated for 3 months @1% p.m and the final installment is calculated at a flat rate if 1% for 1 month only.

      This is explained in detail in our article Advance Tax:Details-What, How, Why
      Finotax has great Advance tax calculator. Check it out here

  2. sriram says:

    Sir, I have filed my income tax return for the year 2013-2014 before paying tax through online challan and now I have paid the same, but how should i enter the challan detail in my itr-v or is there any other way to intimate income tax office. please help me on this.

    Thanks in advance.

  3. Bhavesh says:

    Dear Sir we have made Online payment of Self Assessment Income Tax ( Challan 280 ) for FY 2012-13 (AY 2013-2014) on 11-09-2013 , by mistake while making online payment AY 2012-2013 has been entered by us. Tax CounterFoil generated also indicate AY 2012-2013. Now we need to correct the same to AY 2013-2014 , kindly inform how it can be corrected.Also we have uploaded ITR1 next day after making online payment. Kindly advise in the matter.

    • Kirti says:

      Hello Bhavesh
      As you have paid Challan 280 You need to go to your Assessing Officer and get it corrected. The procedure has been explained in our article How to Correct Challan 280
      Hope it helps. Do let us know how was the experience.

      • Bhavesh says:

        Dear Sir,
        Thanks for information. As per suggestion we have drafted request letter to AO for required correction. Once submitted and needful being done we will update our experience. Thanking you.

  4. Gagan says:

    Hi Kirti,

    I had filed my income tax by e-filing and sent the ITR-V/Acknowledgement by speed post to

    Income Tax Department – CPC,
    Post Bag No – 1,
    Electronic City Post Office,
    Bangalore – 560100,

    My sister had also sent her acknowledgement by speed post on the next day.
    She has received the confirmation of receipt of acknowledgement from Income Tax 10 days back.
    But I haven’t. How do I check whether my acknowledgement has been received.


    • Kirti says:

      I would suggest don’t get worried. From our article After e-filing ITR: ITR-V,Receipt Status,Intimation u/s 143(1)
      Upon receipt of ITR-V, Central Processing Centre (CPC) Bangalore dispatches an email acknowledgement. It should reach within a month of sending ITR-V to Bangalore.

      • The e-mail from CPC is sent to the email ID mentioned in the ITR. If you don’t get the acknowledgement, check you SPAM folder.
      • By filling details of your PAN and assessment year or by filling the e-filing acknowledgement number on the ITR-V Receipt Status tab under Services section on the e-fling website as shown in picture below.
      • You can check the status of whether ITR-V is received by CPC or not in following ways:
      • It is also available on the income-tax web site,, you can login in your account and check Views and Forms under the tab My Account.
      • You can also call the CPC call centre number 1800-4250-0025 (from 9am to 8pm) to enquire about the status of e-filing.
  5. atul says:

    Hi kirti,
    hOw can I reprint the callan 280? unfortunately I forgot to save and don’t have cin.


  6. Sriram says:

    Found the necessary information I have been looking for. Thank you so much for your efforts.

  7. Chirag Khatri says:

    My wife is doing home based work from internet – how she pay the tax and which details needed to fill the IT returns? For online tax pay which is the right option (i.e. ITNS 280 – what is Type Of Payment*)?


    • Kirti says:

      Is her salary above 2 lakhs only then she MUST file her tax returns. How is she paid,does her employer give her FORM 16 or she earns project wise
      in which her income is as Income from business and she would need to file ITR4. Our article Which ITR Form to Fill? explains it in detail.
      For paying Income Tax challan online our article PPaying Income Tax Online, epayment: Challan 280 explains with detail and pictures

      • Chirag Khatri says:

        Yes, her salary is above 2 lacks (2,09,000). She is not employee of any firm she is doing her work individually at home. She is earning by IT related works (i.e. website development).

        • Kirti says:

          Within Indian Law any individual running a business where he/she is the sole owner is termed as a Sole Proprietor, the same applies with a Freelancer. A person earning on his own is considered a Sole Proprietor and needs to file income tax returns using the ITR-4 return form .
          Letslearnaccounting Taxation for Business or Profession are covers it in detail
          From what little I know (please please get it verified) as her income is from business she can claim expenses ex: Courier, internet charges, electricity charges, client meeting, assistant and hence have her income below exemption limit. So her income can be shown to be less than 2 lakh and hence she does not need to file the returns.

          • Chirag Khatri says:

            Hi Kirti,

            Thanks for detailed information. Last thing, so first, she needs to pay tax online from following link with Chalan 280 option, And use ITR4 to fill IT return right?


          • Kirti says:

            Right Chirag! As no tax would have deducted (TDS) she needs to calculate tax ability of her income (income -expenses for entire year of which she has proof) for ex for 2,09000 she is in 10% bracket so 10% of 2,09,000 + 3% education cess.
            She then needs to pay it by filling Self Assessment Tax using Challan 280
            If she can bring down her income after taking care of expenses she does not need to pay any Tax then no Challan 280.

  8. Sonal says:

    Hi Kirti,

    Thanks for a very informative post. My query is while filing Challan 280 for self assessment tax, I need to put the breakup of tax, cess, interest etc. From the ITR1 xls, I get the total tax payable amount which includes all the above. From #12 in 1st worksheet, section 234A/B/C, I get the interest details. How do I calculate the breakup? The main query is should the 3% cess be calculated on the total of tax + interest (under 234A/B/C) or only on tax ? From the xls calculation, it appears it should be on total of tax + interest. Then accordingly, the field Education Cess should come after Interest instead of before it!

    In the challan form the fields are -

    Income Tax
    Education Cess

    Could you pls explain the calculation considering 10,000/- as total tax payable calculated at #17 of Taxes Paid worksheet, 1000/- as total interest at #12 (under 234)?

    Thanks in advance.


    • Kirti says:

      You need to break up the tax payable into its components, i.e. “Income Tax” and “Education Cess” etc.
      There is no Surcharge for FY 2012-13 and education cess is 3% on total tax.

      For Self Assessment Tax: One needs to pay education cess and also penalties calculated under Sections 234A/B/C and entered separately in “Interest” field. For example: So if total tax payable Rs. 10,000, the Income Tax component is (10,000 / 1.03) i.e. Rs. 9,709, and Education Cess is Rs. 291 (3% of Rs. 9709).
      From 9709 deduct your Interest under 234 A/B/C section and enter it.
      Please make sure tax payable (including education cess ) is the total amount you pay (including interest,education cess) (correct break up is not that important as the total amount) YOUR NET TAX LIABILITY SHOULD BE 0.

      • Sonal says:

        Hi Kirti,

        Thanks for the super quick response!

        So the cess is being calculated on (Tax + Interest) @ 3%.

        Yes, I pay the total amount including cess and would ensure that net tax liability is 0.


        • Kirti says:

          No Sonal education cess is on tax due not on interest under section 234A/B/C.
          I have updated the article with the picture on how to fill. I hope it’s not late.
          Thanks for your query, I would have not done it otherwise!

  9. Gagan says:

    Hi Kirti,

    I have a question related to Tax Liability. My sister and mother have a joint Monthly Income Scheme (MIS) account in post office. The first name is in the name of my sister. Who has to pay tax on the interest income from the MIS. My sister or mother.

    Is it not that tax liability for this interest income gets divided between them. Say total tax from the interest income comes out to be Rs 7200. Then my sister would have to pay Rs 3600 and mother Rs 3600.


    • Kirti says:

      A first holder/primary account holder is the person who is listed first on the account. This person is the main user of the account and is responsible for the account. The primary account holder can add secondary account holders who also are authorized to perform transactions according to some rules.
      Usually its a practice to show it in the name of the person who is the primary holder of the account
      So your sister would be liable to pay tax on it. But as CAClubIndia Joint Bank Account Taxibility Query says
      Income tax officials look at the source of the funds for determining taxes and so, as long as the person can explain his/her part of the income, he/she would have to pay taxes on that part only
      Joint account is for convenience in operating the account. If both individuals are liable to pay taxes on their individual incomes, they should opt for opening two separate joint accounts and, thereby, maintaining clarity in their sources of funds.

  10. Gagan says:

    Hi Kirti,

    The Tax on salary has been deducted by Employer but I have still to pay some extra tax on other sources of Income like Post Office Monthly Income Scheme, Savings Account and FD interest.

    What is the last date of paying this Income Tax. Is it July 31 2013 for Assessment Year 2013-2014 or has the date passed and I have to pay interest on tax now? What I know is that 31 July is last date for filing ITR.

    I have filled the ITR form , it has sections 234 A, 234 B,234 C. What are these ?

    These are the entries in my ITR-1 form

    Balance Tax Payable (10 – 11 ) 12 26,055
    Interest payable u/s 234 A 13a 0
    Interest payable u/s 234 B 13b 1,040
    Interest payable u/s 234 C 13c 962

    Total Interest u/s 234A 234B 234C 13 2002
    Total Tax and Interest Payable (12 + 13) 14 28060

    Can you please let me know whether I have to pay amount in section 12 ie 26055 or 28060.


    • Kirti says:

      Short ans:
      You need to pay Rs 28060 using Challan 280, enter the challan details in ITR have net tax payable as 0 and then upload the ITR. i.e pay before submitting ITR

      For salaried persons tax deduction at source (TDS), takes care of the tax payments for salary. But there can be other kind of income like interest on saving bank account, fixed deposits deposits, bonds, rental income or capital gains. If tax on income is more than 10,000 Rs in a financial year, Income Tax Department expects you to estimate your income and pay Advance Tax. Advance tax has to be paid in instalments in September, December and March. If If advance tax is due to you and you don’t pay then You need to pay interest(under section 234A, 234B, 234C) while filing returns. Details of Advance Tax are covered in our article Advance Tax:Details-What, How, Why

      When you fill in the tax details and Compute the income. If after computation you find that tax is payable, this would be Self Assessment Tax. Pay it before you upload the ITR and then enter the details about it in TDS Details of Advance Tax and Self Assessment Tax. Our article Fill Excel ITR1 Form : Income, TDS, Advance Tax discusses it in detail.

  11. KB says:

    Hi sir,

    I cannot the Chellan no section in the IT returns .I have submitted through E Filing.
    Please clarify me.


  12. Namita says:

    What is the minor code i should use for making a penalty payment order under sec 271(1)c ?

    • Kirti says:

      We are not sure but Please check with your CA or Assessing officer.
      From List of Major and Minor account it seems it should be 105 Penalties
      This minor head will be divided into following sub-heads :-

      Penalties under Section 271(1) (c) of lncome Tax Act, 1961.
      Penalties other than under Section 271(1) (c) of Income Tax Act, 1961.

      Which challan are you planning to fill?

  13. Gagan says:


    I have a joint Monthly Income Scheme account in Post Office with my mother who is a Senior Citizen.
    I am the first account holder. Will the income generated from the MIS scheme be taxable in my name only as I am the first account holder. Will my mother also be liable for tax payment on the interest income generated from this scheme in full or partially.

    I have one more query. I forgot to show Medical Insurance in 80 D as deduction during investment and savings declaration to my company. Can I now show it as deduction while filing income tax returns.


    • Kirti says:

      Income from any joint account is taxable only for the first account holder. So your mother is not liable to pay any tax on it.
      If your employer forget any claims/deductions you can still claim it while filing Income Tax returns. You need to enter the details in
      appropriate section(in your case in 80D) whether deduction is taken care by employer or not. If not taken care by employer then your
      tax liability will reduce. We have explained it in our article How to Claim Deductions Not Accounted by the Employer

      • Gagan says:

        Thanks Kirti for the quick response to my query

      • Gagan says:


        I came to know under Section 80TTA you are eligible for tax deduction on interest in savings account (not FD) to the amount of Rs 10,000. Is that correct. If yes, do I have to add up interests in my saving bank accounts and check whether it exceeds 10,000 or is this deduction applicable per bank account.

        Please confirm.


        • Kirti says:

          Interest earned on Saving Account is considered as Income from other Sources. This needs to be declared in your income tax returns. No TDS is deducted from the interest on Saving Bank Account. Before 1st Apr 2012 it was taxed based on your income slabs.
          From FY 2012-13 under the new section 80 TTA of the Income-tax Act, deduction up to an extent of Rs 10,00 in interest from all the bank accounts is allowed to an individual or Hindu undivided family, Interest over Rs 10,000 will be taxed at marginal tax rate of an individual. This is applicable from the assessment year 2013-14(Financial Year 2012-13) and subsequent assessment years.
          So if you see the ITR there is a separate section 80TTA (near Section 80C)
          Our article Interest on Saving Bank Account: 80TTA discusses it in detail.

  14. Amit says:

    I acknowledge your efforts towards educating people to pay and to understand income tax. Thanks.

  15. Harsha says:

    As always you are doing a great job to educate people on these matters..Another very useful post on Tax…

  16. Very useful info. Thanks for sharing

  17. matheikal says:

    Your posts really educate people like me on many important money matters.

    Could you tell us how a salaried person with no other income can file tax returns online? I have tried to do it earlier but didn’t succeed. If you have already written about it please give me the link.

    Thank you.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Disclaimer : This is an information based website, meant for providing assistance to it's readers. We do not hold any responsibility for mis-information or mis-communication.