Income Tax e-payment procedure - Challan 280

Hello, in this post we will discuss the Income Tax e-payment procedure with Challan 280. Also, we will learn about the modes of payment, prerequisites to make online income tax payment and history of income tax payment.

Let us begin.

Income Tax is a tax levied by the government on income generated by all entities for the said period. This is a key source of income for the government which is used for various public development.

All entities are required to pay the income tax within the specified date, on the income received through different sources. Also, they have to file the income tax returns providing details of such income and payment.

Due Date for the Payment

31st March of the Financial Year is the due date for the Payment of Income Tax

Interest Applicability

If the Payment is being delayed from the due date, then interest would be payable at 1% per month from the month due to the month when it is being paid.

Modes of Income Tax Payment

Income Tax e-payment can be possible in two ways:

  • By cash: Payment of tax in cash at the counter through any authorized bank.
  • By e-payment: Payment of Tax through Net banking or credit card.

History of Income tax Payment

The introduction of the scheme of electronic payment of taxes for income taxpayers was in 2004. With a view to expand the scope of electronic payment of taxes, it was made mandatory for the following categories of taxpayers.

  • All corporate assessee’s
  • All assessees'(other than companies), to whom provisions of section 44AB of the income tax act are applicable.

The scheme of mandatory electronic payment of taxes for Income Taxpayers was made applicable from 1st April 2008. This applicability was made for all payments, irrespective of the assessment year to which it belongs.

Taxes to pay online are:

  • Advance Tax for Income Tax
  • Self Assessment Tax for Income Tax
  • Tax Deducted at Source
  • Tax Collected at Source
  • Regular Assessment Tax for Income Tax

NSDL offers the gateway for Taxpayers to make electronic payment of taxes through the Internet banking facility offered by the authorized banks. They are also provided with an option to make electronic payment of taxes through the Internet by way of debit cards.

Prerequisites for making Income Tax e-Payment

    1. Valid PAN
    2. Internet Banking Account
    3. Good internet connection
    4. Also, sufficient balance in the bank to cover the amount of payment for immediate Transfer

Step by Step procedure to make Income Tax e-payment

    1. Calculate the total income tax payable for the year.
    2. Calculate the interest (if any) with respect to the applicability of interest
    3. Visit the website tin.nsdl.com 
    4. Next, Go to “Service” -> e-payment: Pay Taxes Online option
    5. Select on Challan No./ ITNS 280.
    6. Then, you need to enter the Challan Details
      • Tax Applicable from Corporation Tax(Companies) or Income Tax (Other than companies)
      • Then, Enter Valid PAN
      • Select the Assessment Year [ Choose proper Assessment Year. Eg. for making the payment towards IT of FY 2017-18, select assessment year 2018-19)
      • Address of the PAN holder with City / District, State and pin code is mandatory.
      • Email id and Mobile number. [if required]
      • Type of Payment [Regular Payment – (100) Advance Tax, (102) Surtax, (106) Tax on distributed profit, (300)Self Assessment Tax, (400) Tax on regular Assesment, (107) Tax on Distributed Income.
      • Mode of Payment – Select the mode of payment i.e., Net Banking or Debit Card (of selected banks)
      • Then, enter the code shown and click on Proceed to submit the data entered. Now, a confirmation screen can be seen. Also, if the taxpayer confirms the data entered in challan, it will be re-directed to the Net banking / Debit card payment site of the selected bank. If data needs editing, then the user can do the same by clicking ‘Edit‘.
      • At the Net Banking site, the taxpayer should login to the Net banking site with the user id and password provided by the bank for net banking purpose and enter relevant payment details like the basic tax, surcharge, cess, interest, penalty etc. Select the bank account, in case of multiple bank accounts with internet facility for the same login.
      • At the Debit card Payment site, the taxpayer should enter the details like debit card number, validity information, cardholder name and ATM PIN.
      • On successful payment, you will get a display screen of the challan counterfoil containing CIN, payment details and bank name through which they paid. This counterfoil is the proof of payment. Finally, Print and Save the counterfoil.

Note

  • Do not make any mistake while doing payment. Particularly in mentioning the PAN.
  • BSR code on e-Payment necessarily would not be of the branch, where you hold the account. So, you need to verify the Counterfoil for right BSR code and branch name.
  • While filling up the challan, the selection is of assessment year and not the Financial year. [Consequence further on wrong selection is that users should go to AO or the Income Tax commissioner to get it right]
  • Also, Click here to see the list of Banks authorized to collect Income Tax payment
  • Click here to search for Authorised Bank branch for Payment of Income Tax near your location.

 

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