Challan 280 - How to Pay Your Income Tax Online with Challan 280?

Challan 280 serves as a key tool for Indian taxpayers, promoting a streamlined process for various income tax payments.

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Each year, as tax season approaches, many rush to their Chartered Accountants to file their returns. However, with Challan 280, you no longer need to rely solely on your CA; you can conveniently pay your tax online.

The process for paying income tax online using Challan 280 has moved from the OLTAS e-payment portal to the e-Pay Tax facility on the E-Filing portal. With straightforward steps, you can easily file your income tax online using Challan 280. Taxpayers can choose their preferred method, whether through the convenience of online transactions or by visiting designated bank branches.

What is Challan 280?

Challan 280 is a form used to pay various types of income tax in India. It is used by taxpayers to pay advance tax, self-assessment tax, regular assessment tax, and other types of tax payments, such as tax on distributed profits and tax on distributed income. The form can be filled out online through the e-Pay Tax facility on the Income Tax Department’s website or used for manual payments at designated bank branches.

How do You Pay Your Income Tax Online with Challan 280?

As a responsible citizen, it is important to pay taxes on time. Filing income online has eased this process. Income Tax challan 280 online payment can be done by following these steps:

Step 1: Visit the e-Pay Tax portal

Go to the official Income Tax Department website. Now click “e-Pay Tax” under the Quick Links section on the homepage.

Step 2: Enter your PAN and Mobile Number

On the e-Pay Tax page, enter your PAN and registered mobile number. An OTP will be sent to your registered mobile number. Enter the OTP to proceed.

Step 3: Select the tax type and assessment year

Now, choose “Income Tax” as the tax type and select the correct assessment year you are paying.

Step 4: Fill in the payment details

Select “(0021) Income Tax (Other than Companies)” as the significant head and choose the appropriate minor head based on the reason for payment. Enter the amount of tax you are paying and briefly describe the payment.

Step 5: Choose the payment method

Select your preferred mode of payment: net banking, debit card, or credit card.

Step 6: Verify and Submit the Payment Details

Most importantly, all the information entered must be reviewed carefully to ensure its accuracy. Once confirmed, click on “Proceed to Payment.”

Step 7: Make the payment

You will be redirected to your bank’s net banking portal or a secure payment gateway. Log in using your net banking credentials or enter your card details to make the payment.

Step 8: Receive payment confirmation

Upon successful payment, you will receive a confirmation message for 280 challan online payment and an acknowledgment receipt. Save or print the Challan acknowledgment receipt for your records.

Proof of Payment of Tax

After a successful transaction, a challan counterfoil with the CIN, payment details, and bank name used to process the e-payment will be shown. This counterfoil serves as proof that the transaction was completed. The process to check the tax payment:

Log in to the e-filing website with your User ID, Password, Date of Birth / Date of Incorporation, and Captcha
Click on ‘My Account’ and click on “Refund/Demand Status”. The details would be displayed.
The mode of payment is also displayed.
Verification of Challan tax payment

Here is how you can verify the challan tax payment:

View the website at https://tin.tin.nsdl.com/oltas/index.html.
Choose the TAN-based or CIN (Challan Identification Number) -based view.
To view the Status, complete the necessary fields.
To confirm the Challan entries made in the e-TDS/TCS Statement, Tax Deductors may also download the Challan Details file for a chosen period through a TAN-based view.
To view the Status, complete the necessary fields.
To confirm the Challan entries made in the e-TDS/TCS Statement, Tax Deductors may also download the Challan Details file for a chosen period through a TAN-based view.

Correction of Wrong Assessment Year When Making Income Tax Payments

Mistakes happen, and realizing you have entered the wrong assessment year when calculating income tax payments can be stressful. But do not worry; there are ways to rectify the situation:

Online Challan Correction (For Minor Errors)

If you have only entered the wrong assessment year and the remaining details like PAN, amount, and payment head are correct, you can use the online Challan Correction feature on the e-filing portal. Follow these steps:

Login to the e-filing portal (https://www.incometax.gov.in/iec/foportal/)
Go to “Services” and select “Challan Correction”
Click “Create Challan Correction Request”
Select “Change in Assessment Year”
Enter the correct assessment year and Challan Identification Number (CIN)
Submit the request

However, this facility is only available for minor errors in the challan, like assessment year, major head code, and minor head code. It is not available for changes in PAN, amount, or name.

Offline Correction at Bank/Assessing Officer

If you have made mistakes beyond the scope of online correction, like entering the wrong PAN, amount, or payment head, you must visit your bank branch or the assessing officer’s office.

At Bank:

Fill out a Challan Correction Request form at the bank where you made the payment.
Attach a copy of the original challan and any supporting documents.
Submit the request to the bank official.

At the Assessing Officer’s Office:

Write a letter to the assessing officer requesting correction in the challan.
Mention the details of the error and the correct information.
Attach a copy of the original challan and relevant documents.
Submit the letter to the assessing officer’s office.

The time limit for making corrections is usually seven days for online correction and 30 days for offline correction. However, it is best to act promptly to avoid any complications.

Rectification Request After Filing ITR

If you have already filed your ITR and realized you made a mistake in the assessment year mentioned in the challan, you can file a Rectification Request through the e-filing portal:

Login to the e-filing portal
Go to “My Account” and select “Services”
Click on “Request for Rectification”
Select the relevant order (ITR) and assessment year
Choose “Return Data Correction (Offline)”
Explain the error in the challan and provide the correct information
Submit the request

This option is only available if the mistake affects the tax credit claimed in your ITR.

Advantages of Filing Income Tax Online with Challan 280

Challan 280 facilitates multiple advantages when paying your income tax online and offline. Here are some key benefits:

Convenience

Challan 280 is a standardized form for various income tax payments, eliminating the need for separate forms for different situations. It can be used for self-assessment tax, advance tax, regular assessment tax, and more.

Online and Offline Options

You can pay your taxes online with Challan 280 through the e-Pay Tax portal, offering flexibility and accessibility from anywhere. Alternatively, you can use the form to make offline payments at designated bank branches.

Efficiency

Online Challan 280 payments get reflected in your tax records quickly, eliminating delays associated with traditional methods like cheques or demand drafts. Filling out a standardized form minimizes the risk of errors compared to manual calculations, potentially leading to smoother tax assessments.

Detailed Tracking

The Challan 280 system records your tax payments, including date, amount, and purpose. You can access this information online for easy reference and tracking of your tax obligations.

Key Takeaways

Challan 280 serves multiple purposes, allowing taxpayers to pay advance tax, self-assessment tax, and regular assessment tax.
Corrective measures are available online for minor errors, such as entering the wrong assessment year.
Payments made via Challan 280 are promptly reflected in tax records, avoiding delays typical of traditional methods like cheques.
Through the e-pay tax portal, taxpayers can securely pay taxes from anywhere using net banking, debit, or credit cards, ensuring ease of access and timely transactions.

Final Thoughts

Challan 280 offers convenience, efficiency, and transparency in income tax payments. It empowers taxpayers, simplifies complex processes, and ensures a smoother and more accountable financial journey. Embracing Challan 280 is a step towards a more streamlined and hassle-free tax compliance experience. After submitting Challan 280, we recommend you keep track of its status online. You can check its online status using Challan’s identification number, serial number, serial date, and the BSR bank’s code.

FAQs on Challan 280

Can I pay my income tax using Challan 280 after the due date?

Yes, you can pay your income tax using Challan 280 after the due date, but you may be subject to interest and penalties.

Is it possible to pay income tax for multiple assessment years using Challan 280?

No, you need to fill out a separate Challan 280 for each assessment year.

What should I do if I make a mistake while filling out Challan 280?

If you make a mistake, you should contact your assessing officer or the bank where the payment was made to correct the error.

How can I check the status of my Challan 280 payment?

You can check the status of your Challan 280 payment on the NSDL website under the “Challan Status Inquiry” section.

What should I do if I do not receive a receipt after making a payment with Challan 280?

If you do not receive a receipt, contact the bank where the payment was made or check your payment status online.

Can NRIs use Challan 280 to pay their Indian income tax?

Yes, NRIs can use Challan 280 to pay their Indian income tax.

Is it safe to pay income tax online using Challan 280?

Yes, it is safe to pay income tax online using Challan 280 as long as you use secure websites.

How long does it take for an online payment using Challan 280 to reflect in the tax records?

A few days for an online payment using Challan 280 to reflect in the tax records typically takes a few days.