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HomeIncome TaxLearn How to Fill Out Challan 280 for Self Assessment Tax Briefly.

Learn How to Fill Out Challan 280 for Self Assessment Tax Briefly.

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A Challan, also known as a bank challan, is an official document, form, or piece of paper used to transfer funds from one account to another. It is comparable to a deposit slip used to deposit cash or make an online transfer into someone else’s bank account. The merchant creates the bank challan since they already know the recipient and amount. Bank challans are a safe and dependable way to transfer money from one account to another. An electronic challan, or E-challan, can be used for the same purpose. Since there is no need to fill out the information, using an e-challan manually is more convenient and secure than other money transfer methods. 

Did you know? The government allows taxpayers to check the status of their Challan 280. In this way, the taxpayer can find out whether his online or offline payment has reached the Income Tax Department.

What is Challan 280?

In the past, filing tax returns required significant time and paperwork. The documents had to be mailed, which made it a tedious process. With the advancement of technology, this task can now be done online, saving time and money. To make the process quicker and simpler, the Income Tax Department has introduced an e-tax system that enables you to file your taxes online and submit the necessary paperwork. The official document used to pay taxes is called Challan 280.

Challan 280 is how any individual or firm can pay taxes online. It is used to pay taxes such as advance tax, regular assessment tax, self-assessment tax, tax on distributed profits or distributed income and other fees online. When selecting the offline option, you must bring the form and payment to a specific bank location. To complete the transaction online, you must visit the TIN NSDL website and make the requisite payment. 

Also Read: Section 194I – TDS On Rent – Income Tax Act, 1961.

How to File Your Income Tax Using Challan 280 Online?

Step 1: Visit https://www.tin-nsdl.com/  to access NSDL’s official website.

Step 2. On the home page, select the “Services” tab to display a drop-down menu.  

Step 3. Choose the drop-down menu item that says “e-payment: Pay Taxes Online.”

Step 4. You will be taken to the page for “e-Payment of Taxes.” You can also click “Click to pay tax online” to go directly to the “e-Payment of Taxes” page by going to the “Pay Taxes Online” box located on the right side of the website’s home page. 

Step 5. Select “Challan No./ITNS 280” from the drop-down menu and press “Proceed.” 

Step 6. The challan, which must be filled out with information such as the applicable tax, the Permanent Account Number (PAN), the assessment year, and other details, is displayed on the following page. 

Step 7. To pay income tax, choose the “(0021) Income Tax (Other than Companies)” option. For paying corporation tax, businesses will use the other option, “(0020) Corporation Tax (Companies).” 

Also Read: Everything About Income Tax Slabs for FY 2021-22 (AY 2022-23)

 

Step 8. After that, choose the appropriate “Type of Payment” from the list of options, which includes 

  • (100) Advance Tax
  • (102) Surcharge, 
  • (106) Tax on Distributed Profit 
  • (107) Tax on Distributed Income 
  • (300) Self-Assessment Tax
  • (400) Tax on Regular Assessment. 

Step 9. Next, select your preferred payment method. Either a debit card or net banking can be used to make the payment. After choosing the practical option, select the bank’s name from the drop-down menu next to your choice. 

Step 10. After that, select the appropriate Assessment Year from the drop-down box and enter your PAN information

Taxpayers must also complete this challan’s payment before submitting their ITR. Taxpayers can use their credit or debit cards, online banking, or electronic wallets to make payments for their taxes using Challan 280, which is a straightforward and simple process. Making sure that the information on Challan 280 is accurate is crucial because false information could result in the bank rejecting the payment.

Also Read: TDS Challan ITNS 281- Pay TDS Online With E- Payment Tax

How to File Your Income Tax using Challan 280 Offline?

Taxpayers who wish to pay income tax in offline mode can download the Challan 280 form from the Income Tax department’s official website. The Challan 280 form requires the taxpayer to fill out the necessary information, including PAN, the year of assessment, contact information, and other details. This is similar to the online income tax payment process. Once the details are filled out, Challan 280 must be delivered to one of the designated bank branches along with the income tax payment. This can be done by cash, check, or demand draft. As evidence of payment, the bank will supply a stamped counterfoil.  

Receipt of Payment

Following payment, the user will receive a challan counterfoil containing information such as the CIN (Challan Identification Number), the amount paid in tax and the date of payment. The CIN is an acknowledgement of taxes paid by the assessee. 

Challan Tax Payment Verification

The Income Tax Department provides the facility to check the status of challans generated for an assessee. The status of the challan is also confirmed by verifying it. An assessee can also use the NSDL website to check the status of a payment he or she has made. 

The status of the challan can be verified in one of the two ways as mentioned below: 

Using the CIN 

To track the status of the challan, an assessee can provide details such as the Challan Identification Number (CIN), the Challan tender date, the BSR code of the bank branch where the payment was made, and the serial number of the challan. The assessee can also confirm that the amount of tax paid is correct by specifying the actual amount paid. 

Using the TAN  

An assessee can provide details about the tax deduction and collection number or TAN and the challan tender date to view the details of his or her Challan Identification Number (CIN). In addition, the assessee can also specify the amount against a particular CIN, which will validate the amount uploaded by the bank.

Things to Remember When Paying Taxes 

1. It is critical to specify the correct assessment year. Don’t mix the fiscal year and the assessment year. 

2. Select the appropriate tax code. This is extremely important because if you select the wrong code, the payment will not reflect in your Income tax account.   

3. Keep the tax receipt safe. This will be required while filing for ITR and communicating with the Department.

  • If a taxpayer encounters a problem while making an e-payment on the NSDL website, he should contact the TIN call centre. 
  • If a taxpayer encounters a problem with his bank’s payment gateway while making an e-payment, he should contact his bank.  

Conclusion

Challan 280 is an important part of this process that adheres to a strict procedure and a specific order. With the implementation of the E-Tax system, filing income taxes has become a relatively simple process. Although more people in India are now using the internet, some areas, particularly rural areas, still need to be connected. Despite these constraints, the government has continued to allow offline payment methods. Offline income tax payment will continue to be an option in the future, but the government will continue to limit which taxpayers can use it. This is to prevent geographical discrimination against the Indian population and ensure they have equal access to government services and procedures. Filing income taxes can be difficult if proper procedures are not followed. 
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