Income Tax Challan FAQs
General FAQs on Income Tax Challan
What are the new challans for the payment of Direct Taxes / Income Tax ?
The following new single copy challans have been introduced with effect from July 2005.
| Sl. No. (1) | Challan No. | Description | Type Of Payment |
|---|---|---|---|
| 1. | ITNS 280 | For payment of Income Tax and Corporation Tax. |
|
| 2. | ITNS 281 | For depositing Tax Deducted at Source/Tax Collected at Source (TDS/TCS) from corporates or non-corporates. |
|
| 3. | ITNS 282 | For payment of Securities Transaction Tax, Hotel Receipts Tax, Estate Duty, Wealth Tax, Gift Tax, Expenditure Tax and Other direct taxes. |
|
| 4. | ITNS 283 | For payment of Banking Cash Transaction Tax and Fringe Benefits Tax. |
|
Each challan has a taxpayer counterfoil at the bottom which will be returned to you by the bank after duly stamping it with a Challan Identification Number (CIN).
Where can one obtain these Challans?
With effect from July 2005, the following challans should be used :
- A common single copy challan No. ITNS 280 for payment of Income tax and Corporation tax;
- A common single copy challan No. ITNS 281 for depositing Tax Deducted at Source / Tax Collected at Source (TDS/TCS) from corporates or non-corporates;
- A common single copy challan No. ITNS 282 for payment of Hotel Receipts Tax, Estate Duty, Wealth Tax, Gift-tax, Expenditure Tax and Other direct taxes.
- A common single copy challan No. ITNS 283 for payment of Banking Cash Transaction Tax and Fringe Benefits Tax.
these Income Tax Challans are also available at the local Income tax offices
How does the new system benefit me, a common tax payer?
The new system is of great benefit to the common tax payer. Now a single simplified challan has to be filled up replacing the complicated four-copy challan. This challan can be filled up much faster. Secondly, it will be possible to obtain an acknowledgement for taxes paid at your own bank branch immediately. Further, once you have the acknowledgement counterfoil with the rubber stamp containing the Challan Identification Number (CIN) and you have filled in your PAN correctly, you are assured that the payment will be properly accounted for in your name. Lastly, you will no longer need to attach copies/ acknowledgement of challan with your return. Simply mention the CIN details in the income-tax return. This will also assist you in e-filing your return.
Can I pay taxes using the old challan?
No
What is the new procedure for payment of direct taxes at banks?
If you are paying taxes in cash at any designated bank branch or by cheque at the bank branch where you have a bank account, the bank will accept your cash/cheque and will immediately stamp the counterfoil of the challan with a rubber stamp containing the CIN.
If however, you are paying taxes by cheque/draft at a bank branch other than where you have a bank account, the collecting bank branch will accept your cheque/draft and issue you a paper token in acknowledgement. When you present this token after encashment of the cheque, the bank will hand over the acknowledgement counterfoil duly stamped with the CIN.
What is Challan Identification Number (CIN) and what is its relevance?
Challan Identification Number (CIN) has three parts
- Seven digit BSR code of the bank branch where tax is deposited
- Date of Deposit (DD/MM/YY) of tax
- Serial Number of Challan
CIN is stamped on the acknowledgement receipt to uniquely identify the tax payment. CIN has to be quoted in the return of income as a proof of payment. CIN is also to be quoted in any further enquiry. Therefore, you must ensure that CIN (comprising the above three parts) is stamped on the Challan by the bank. If not, immediately contact the bank manager and insist on CIN.
The Reserve Bank of India has already passed an order dated April 1, 2004 making it compulsory for all tax collecting branches of banks to use a rubber stamp acknowledgement that carries CIN. A separate CIN is given for each challan deposited. If the Bank Manager is unable to resolve the issue, you should address your grievance to the Bank’s Regional Manager and the Regional Office of Reserve Bank of India for redressal.
How will the acknowledgement stamp bearing the CIN look like?
The Acknowledgement stamp of the bank will contain the following information
- Bank Branch Name
- BSR (7 digit)
- Deposit Date (DDMMYY)
- Serial No.
Do I have to attach the acknowledgement counterfoil with my return?
No, it will be considered sufficient proof if you quote your Challan Identification Number (CIN) (as mentioned in your counterfoil) in your return. The Income-tax return forms have been suitably modified.
What should I do if I have misplaced my acknowledgement counterfoil?
Kindly approach the bank where you have deposited the tax and request them to issue you a certificate which contains your payment particulars including CIN.
What would happen if I loose the paper token issued by the bank?
Each bank follows its own procedure so you may contact the branch manager of the bank.
Type of Income Tax Challan to be Used
I am an individual and have to pay self assessment tax (income tax) before filing my return of income. Which challan should I use?
You should use Challan ITNS No. 280 and tick the box 0021 Income-tax. As you are paying self assessment tax, you should further tick the Self Assessment Tax (300) under Type of Payment.
We are a corporate and have to pay Advance Tax for Assessment Year 2005-06. Which challan should we use?
You should use Challan ITNS 280 and tick the tax 0020 Corporation Tax. As you are paying Advance tax for the Assessment year 2005-06, write this in the space provided in the challan and then tick the box Advance Tax (100) under Type of Payment.
We are a partnership firm and have to deposit tax deducted from a corporate. Which challan should we use?
You should use Challan ITNS No. 281 and tick tax ‘(0020) companies’ as the status of the deductee is a company.
We are a company XYZ Ltd. and have deducted tax source for both companies and non-companies on ‘Interest other than interest on securities’. Which challan should we use to deposit the tax?
You will have to use two separate challans. You should use Challan No. 281 and tick box (0020) in respect of tax deducted at source from companies. You should use a separate Challan No. 281 and tick box (0021) in respect of tax deducted at source from non-companies.
As in both cases, tax deposited relates to TDS on ‘Interest other than interest on securities’, you should fill up code No. 94A in the ‘Nature of Payment’ field in the challan. The codes for ‘Nature of Payment’ are mentioned behind the challan.
Deposit of Tax
We have to deposit taxes on account of TDS on salaries of our employees as well as TDS on interest paid to fixed deposit holders who are individuals and other corporates. Can we combine the three payments in one challan?
The following new single copy challans have been introduced with effect from July 2005.
No, you will have to use three separate challans.
The TDS on salaries of employees will have to be deposited with Challan No. ITNS 281 by ticking the box ‘0021 non-companies’ as the TDS pertains to individuals (non-companies). The code 92B will have to be filled up under ‘Nature of Payment’. (Codes for ‘Nature of Payment’ are mentioned behind the challan.)
In respect of interest paid to fixed deposit holders, you will have to first of all segregate the interest payable/paid to companies (Corporates) and non-companies.
- For the portion of TDS pertaining to companies, fill up Challan No ITNS 281 and tick box ‘0020 companies’ as the TDS pertains to companies.
- For the portion of TDS relating to non-companies, fill up a separate Challan No. ITNS No. 281 and tick box ‘0021 non-companies’ as TDS pertains to non-companies.
- Fill up the ‘Nature of Payment’ as per codes given behind Challan No. ITNS 281. In this case also the code will be 94A.
Please ensure that the bank branch gives you separate acknowledgements with separate Challan Identification Number (CIN) for the three challans deposited by you.
If I have to deposit fees for filing appeal, what should I do?
In case you have to deposit appellate fees, copying charges or other miscellaneous payments, tick box 0020, thereafter tick box ‘400 Regular Tax’ under ‘Type of Payment’ and fill up the amount to be paid in ‘Others’ column under ‘Details of Payment’. In case of non-corporates such as individuals, partnership firms, societies etc. the same procedure is to be followed except that the box 0021 should be ticked at the top of the challan instead of 0020.
After depositing my tax at the bank, I have noticed that I have mentioned the Assessment Year/Minor Head incorrectly in my challan. Whom do I approach to have this corrected?
The fields that can be corrected by the Taxpayer through Bank and the respective timelines for making the correction is mentioned under Services -> OLTAS -> Correction in OLTAS challan
After depositing the tax at the bank, I have noticed that I have mentioned wrong PAN, or I have received my PAN after making the challan payment. How do I get this incorporated in my challan information?
The fields that can be corrected by the Taxpayer through Bank and the respective timelines for making the correction is mentioned under Services -> OLTAS -> Correction in OLTAS challan
Is it possible for us to deposit many challans with a single cheque?
No, you should deposit separate cheques for each challan
Which are the banks where direct taxes can be paid?
As on date, 30 banks and the Reserve Bank of India (RBI) at 8 centres are collecting taxes through their authorised branches. To check the nearest authorised bank branch, you may contact the bank manager of your bank who will be able to guide you. This information can also be obtained from NSDL e-Gov -TIN website and the Income Tax Department website.
Can I make income tax payment using the internet?
You can make income tax payment through the internet. This facility is called e-Tax payment. Details of the same are available at NSDL e-Gov-TIN website and the Income Tax Department website. [ Refer How to Pay Income Tax online ]
e-TAX Payment
What is e-payment of taxes?
This is a facility provided to the taxpayers to make income tax payments through internet, using net-banking facility.
How can I use this facility to pay income tax?
You can use the facility if
- You have a bank account with net-banking facility
- Your bank is amongst the banks that provide the e- payment facility.
Whether it is mandatory to pay tax online?
It is mandatory for the following types of assesses to pay tax online with effect from April 1,2008.
- All the corporate assesses.
- All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable.
Whether it is mandatory to make the TDS/TCS payment (Challan 281) online?
Yes, it is mandatory for below Assessee to make the TDS/TCS payment online
- All the corporate assesses.
- All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable.
How do I know whether my bank provide this facility?
The list of banks providing this facility is available on NSDL e-Gov-TIN website. Alternatively you may get the information from your bank.
What should I do if my bank does not have an online payment facility or is not an authorized bank for etax ?
In case your bank doesnot have an online payment facility or is not an authorized bank then you can make electronic payment of tax from the account of any other person who has an account with the authorized bank having online facility. However, the challan for making such payment must clearly indicate your Permanent Account Number (PAN).
What is the procedure for entering the required data on the screen for paying tax online?
Follow the steps as under to pay tax online:-
Step 1
a) Log on to NSDL-TIN website (www.tin-nsdl.com).
b) Click on the icon “e-payment: pay taxes online”
c) Click on ‘Click to pay tax online’
d) Select the required challan.
Step 2
After selecting the required challan, you will be directed to the screen (online challan Form) for entering the following data:-
a) PAN for non-TDS payments or TAN for TDS payments
b) Address of the taxpayer
c) Assessment Year or Financial Year
d) Major Head Code
e) Minor Head Code
f) Type of payment (for TDS payments)
g) Select the bank name from the drop down provided
In case of challan no. 280, 282 and 283 the Permanent Account Number (PAN) needs to be entered. In case of challan no. 281 Tax Deduction/Collection Account Number (TAN) needs to be entered. Please ensure that you enter PAN/TAN correctly, as this is extremely important for further processing. The system will check the validity of PAN/TAN. In case PAN/TAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of tax.
Step 3
After entering all the above detail, click on PROCEED button. The system will check the validity of PAN/TAN. In case PAN/TAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of tax.
If PAN/TAN is available then 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.
Step 4
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. In case any discrepancy is observed in Name as per ITD, please confirm the TAN / PAN entered by you. Any change required in the name displayed as per the TAN / PAN Master can be updated by filling up the relevant change request forms for TAN / PAN.
Step 5
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.
On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.
What is the procedure after being directed to the net banking site of the bank?
TIN system will direct you to net-banking facility of your bank. You will have to log on to the net banking site of your bank using your login ID and password/PIN provided by the bank. The particulars entered by you at TIN website will be displayed again.
You will now be required to enter the amount of tax you intend to pay and also select your bank account number from where you intend to pay the tax. After verifying the correctness, you can proceed with confirming the payment.
What will happen after I confirm the payment of tax at my bank’s site?
Your bank will process the transaction online by debiting the bank account indicated by you and generate a printable acknowledgment indicating the Challan Identification Number (CIN). You can verify the status of the challan in the “Challan Status Inquiry” at NSDL e-Gov -TIN website using CIN after a week, after making payment.
How can I know that I have completed tax payment using this facility?
Apart from CIN given to you, you can check your online bank statement to verify the tax payment.
Do I have to attach the acknowledgment counterfoil with my return?
No, it will be considered sufficient proof if you quote your Challan Identification Number (CIN) as mentioned in your counterfoil in your return.
What is the timing for making payment through internet?
You will have to check the net-banking webpage of your bank’s website for this information.
If I encounter any problem while making payment through internet whom should I contact?
If any problem encountered at the NSDL e-Gov website while entering non-financial data then contact the TIN Call Center at 020 – 27218080 or write to us at (Please indicate the subject of the mail as Online Payment of Direct Tax ).
If any problem encountered while entering the financial details at the net-banking webpage of your bank, then you should contact your bankfor assistance.
Where should I make enquiries about my tax payments through internet?
You should contact your bank for queries about your payment transaction through internet.
Whom should I contact if the counterfoil containing the CIN is not displayed on completion of the transaction and if I want duplicate counterfoil?
Your Bank provides facility for re-generation of electronic challan counterfoil kindly check the Bank website, if not then you should contact your bank request them for duplicate challan counterfoil.
If I have misplaced my counterfoil whom do I contact?
Your Bank provides facility for re-generation of electronic challan counterfoil kindly check the Bank website; if not then you should contact your bank and request them for duplicate challan counterfoil.
After making e-payment of direct tax if status of challan is not available under Challan Status Enquiry on NSDL e-Gov site, what should I do?
You can verify the status of the challan in the “Challan Status Inquiry” at NSDL e-Gov-TIN website after 5 to 7 days of making e-payment. In case of non availability of the challan status kindly contact your bank.
If I encountered any error on NSDL e-Gov site while making e-tax payment what should I do?
If encountered any error on e-tax website kindly contact TIN call centre at 020 – 27218080 or write to us at 
(Please indicate the subject of the mail as Online Payment of Direct Tax).
If after entering challan details in NSDL e-Gov site if Bank Name is not being displayed what should I do?
The problem may be encountered because of the following
Reason 1: If Assessee enters incorrect TAN / PAN in challan data entry screen.
Reason 2: If Assessee using Internet Explorer browser then temporary internet files should be deleted by following
- Open Internet Explorer window
B. Go to “Tools” Menu
C. Select “Internet Options”
D. Delete cookies and Delete temporary Internet files on your machine
E. Close the current Internet Explorer windows
F. Again go to NSDL e-Gov TIN website i.e. www.tin-nsdl.comand make e-payment
If still above raised problem not resolved then kindly contact the TIN Call Center at 020 – 27218080 or write to us at (Please indicate the subject of the mail as Online Payment of Direct Tax).
Account get debited more than once for the same e-tax transaction what should I do?
If during the transaction or after completing the transaction bank site encountered any error or get disconnected before generating Taxpayer counterfoil then instead of doing the same transaction again kindly check your Account, if account is being debited then contact your bankfor regeneration of taxpayer counterfoil . Please note in the above case do not make the same transaction again which result in account debited more than once for same e-tax transaction.
How secure is the transmission of data to the website for e- payment?
All transmission through NSDL e-Gov TIN website is encrypted and is with Secure Socket Layer (SSL) authentication. With respect to the banks, it depends on the security measures provided by the bank for net-banking.
How does this system of payment of taxes through internet benefit me as a taxpayer?
This system is beneficial to you as you are not required to personally visit the bank to make the payments. Payment can be made electronically at your convenience from any place where an internet facility is available e.g. your office, residence, etc. Further, you get the Challan Identification Number (CIN) online, which is required by you when you file your return.