To deposit Advance Tax, Self Assessment tax and Regular Assessment Tax an individual has to use challan ITNS-280. It can be paid both through internet (online or e-payment) and at designated branches of banks empanelled with the Income Tax Department (offline). Our article Challan 280: Payment of Income Tax discusses the basics of Payment of Income Tax. In this article we shall explain for an individual what is Challan 280, how to pay online?
Online Payment or E-Payment
e-Payment facilitates payment of direct taxes by taxpayers through internet (also called online). To avail of this facility the taxpayer is required to have a net-banking account with any of the Authorized Banks. The webpage for paying tax online is TIN NSDL webpage. Tax Information Network (TIN) is an initiative by Income Tax Department of India (ITD) for the modernization of the current system for collection, processing, monitoring and accounting of direct taxes using information technology. TIN is a repository of nationwide Tax related information, and has been established by National Securities Depository Limited (NSDL) on behalf of ITD.
Step1 : On TIN NSDL webpage Select Challan 280.
Step 2: Enter details such as a) PAN for payment of Tax. b) Address of the taxpayer c) Assessment Year d) Major Head Code e) Minor Head Code f) Type of payment g) Select the bank name from the drop down provided. TIN NSDL webpage of Authorised Bank is list of banks through which one can do e-Payment of tax.
Note: In this screen or webpage you don’t have to enter your name. Please ensure that you enter PAN correctly, as this is extremely important for further processing. The system will check the validity of PAN. In case PAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of tax. After entering all the above detail, click on PROCEED button. TIN system will display the contents you have entered along with the “Name” appearing in the ITD database with respect the PAN/TAN entered by you.
E-payment instructions on the webpage are as follows:
Step 3 : You can now verify the details entered by you. In case you have made a mistake in data entry, click on “EDIT” to correct the same. If all the detail and name as per ITD is correct, click on “SUBMIT” button. You will be directed to the net-banking site provided by your bank.
Step 4: Fill in the information.
Assessment year :Return for income earned in a particular financial year (say April 1, 2012 to March 31, 2013) should be filed by July 31 of the immediate next financial year (2013-14). In this case, FY is 2012-13 and AY is 2013-14.
- Financial Year (FY): This is the year (starting April 1) in which you earned the income for which you are filing your tax return.
- Assessment Year (AY): This is the year (starting April 1) in which you are filing the tax return for a given Financial Year.
Tax applicable : For individual Select 0021 : INCOME-TAX (OTHER THAN COMPANIES)
Type of Payment : Type of payment depends on why you are paying income tax.
- 100 for Advance Tax
- 300 for SELF ASSESSMENT TAX,
- 400 for Tax on Regular Assessment for making any payment only when demand has been raised by Income Tax Department.
Step 4:Login to the net-banking site with the user id/ password provided by the bank for net-banking purpose and enter payment details at the bank site.
You need to break up the tax payable into its components, i.e. “Income Tax” and “Education Cess” etc as shown in picture below. There is no Surcharge for FY 2012-13 and education cess is 3%.
- Basic tax is tax payable without any cess, interest etc.
- Surcharge : is Not applicable. So Should be 0(zero)
- Penalty :is applicable only if assessment order is passed and you receive a notice from Income Tax Dept. Not applicable for Self Assessment or Advance Tax.
- Education cess. : is 3% of the Basic tax.
- Interest : If one has to fill interest for late payment of advance tax and self assessment tax 234B,234C or any other interest . Then it has to be mentioned here.
- Others: Which does not fit into any of above category Unless specially asked ignore.
For Advance Tax: Filling only basic 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. If you have detailed calculation say while filing ITR fill in the values from it as shown in image below. Else get the breakup of tax into education cess, interest and Basic tax.
Step 5: Your bank will process the transaction online by debiting the bank account indicated by you and on success generate a printable acknowledgement indicating the Challan Identification Number (CIN). Challan counterfoil will contain CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made. You can verify the status of the challan in the Challan Status Inquiry at NSDL-TIN website using CIN after a week, after making payment.
If any problem encountered
- at the NSDL website while entering non-financial data then contact the TIN Call Center at 020 – 27218080 or write to at
- While entering the financial details at the net-banking webpage of your bank, then you should contact your bank for assistance.
This system is beneficial as one is not required to personally visit the bank to make the payments. Payment can be made electronically at one’s convenience from any place where an internet facility is available e.g. office, residence, etc. Further, you get the Challan Identification Number (CIN) online, which is required by you when you file your return.
After paying income tax through Challan 280 what next?
You can verify challan using CIN in reciept online through your Form 26AS or through Challan Status Enquiry on TIN webpage. You also need to quote CIN number while filing your income tax. Our article , Challan 280: Payment of Income Tax, discusses verification, correction process in detail
If you have paid Self Assessment tax through Challan 280 fill in the details in Tax paid and make sure that your tax liability is 0 before submitting the return as explained for ITR1 in our article Fill Excel ITR1 Form : Income, TDS, Advance Tax Our article Self Assessment Tax, Pay Tax using Challan 280, Updating ITR discusses it in detail.
Reprint Challan 280
Income Tax Returns can be filed only if we have paid the Tax due to the government. If you submit the ITR without paying then your Income Tax Return can be declared Defective.
After paying Self Assessment/Advance Tax one needs to download the Challan 280 reciept and update Income Tax Return. But at times many people forget to download the receipt. Most of the bank offer the facility of re-generation of Cyber Receipt/ Challan for the e-Payment of Direct Taxes through TIN-NSDL website.
Banks upload challan details to TIN in 3 working days basis after the realization of the tax payment. On the day after the bank uploads the details of self assessment/advance tax to TIN, it will be automatically posted into your Form 26AS.
But what if you want to get details of your challan now and can’t want for Form 26AS Updation. For example filing ITR near the deadline. Then you need facility to regenerate Challan 280/reprint Challan 280. Many Banks provide this facility. We have updated details from SBI, HDFC bank and ICICI Bank in our article Reprint Challan 280 or Regenerate Challan 280
For more queries : Check TIN-NSDL’s Frequently Asked Questions (FAQ) on e-payment
- Advance Tax:Details-What, How, Why
- Filling ITR-1 : Bank Details, Exempt Income, TDS
- Income Tax Overview
- Challan 280: Payment of Income Tax
- Paying Income Tax Offline: Challan 280
Disclaimer: Please do not construe this as professional financial advice. While efforts have been made to provide correct information, this is our understanding of the Income tax law. Apologies upfront for any mistakes. Please let us know and we will correct. Please don’t send us emails asking us to check your income tax detail. But if you have any doubt on the article or some clarification is required or you feel some information is wrong. Please leave it in comment section so that all readers can benefit. For details check our Disclaimer.
In this article we have tried to cover how to pay income tax using challan ITNS-280. Do you pay Challan 280 online or offline? Do you pay Education cess while filling the Advance Tax? What have been your experience in paying through Challan 280? Did you like the article?