Income tax Startups

How to Pay Tax Online using Challan 280 of Income Tax

How to Pay Tax Online using Challan 280 of Income Tax

As per the provisions of the Income Tax Act 1961, every person liable to tax needs to make the payment of tax. The payment is required to be made as per the methods specified by the Income Tax Department. In this article, we will discuss the Income tax online payment procedure using challan 280 of income tax.

Historically, the taxes were paid offline. In the offline method, the payment of taxes was used to be made at the banks. A person who wanted to make the payment had to visit a branch of the Bank that was eligible to collect taxes. The person or the representative of the person making the payment needed to fill the Challan offline and pay the taxes.

With digitalization, the process to pay taxes is now also available online. The old process of paying taxes offline also exists. But the online process has been introduced for the convenience of the taxpayers. Earlier, taxpayers had to wait in long queues for the payment of taxes. The whole process was tiresome and difficult. To facilitate the payment of tax and encourage people to pay taxes, the process has been made online.

Since, the introduction & simplification of Income-tax online payment procedure, more people are turning for payment of taxes online.

Challan 280 of Income Tax

The income tax online payment procedure consists of many challans for making the payment of taxes online. Such challans can be used for making any type of payment such as for paying TDS, demand, taxes, or other taxes. In this article, we are going to discuss Challan 280 of Income tax.

Challan No. 280 also known as ITNS 280, is a form that has been in use for a long time. Even, when taxes were paid offline, Challan 280 was in use. In offline mode, it was used to be filled by the taxpayer and then submitted at the Bank. When the process of making payment of taxes was made online these Challans were also introduced online. Similar to the offline method, in Online mode also a person is needed to fill the Challan.

Taxes to be Paid using Challan 280

The type of taxes that can be paid using the Challan 280 of Income tax are mentioned below:

  • Advance tax,
  • Self-Assessment tax
  • Tax on Regular Assessment
  • Surtax
  • Tax on Distributed Profits of Domestic Company and
  • Tax on Distributed income to unitholders.

Mandatory Details for Payment of Challan 280 of Income tax

There are some details which one must provide mandatorily in income tax online procedure. Without providing these details a person cannot make the payment. The details which are required to be provided for payment using Challan 280 of Income tax are as follows:

1. What type of tax is being paid by the person i.e. corporate tax in case of companies or Income tax for persons other than companies?

2. Tax to be paid (you need to select any tax from the above list)

3. PAN of the person on whose behalf payment is made

4. Address of the person

These details are mandatory after providing these details a person can make the payment.

INCOME TAX ONLINE PROCEDURE FOR PAYMENT USING CHALLAN 280

Step 1: To pay your taxes online, go to this link https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp. The following screen will appear, containing the list of challans that can be used for paying taxes.

INCOME TAX ONLINE PROCEDURE FOR PAYMENT USING CHALLAN 280 - List of Challans

Step 2: Click on the “Proceed” button as shown in the red box of ‘Challan No/ ITNS 280’. The following screen will appear, containing details that are needed to be filled mandatorily.

Step3: On the above page, select all the details relevant to you and fill the form accordingly.

  1. Select which type of tax applies to you
    • 0020- for Corporation Tax (for companies)
    • 0021- Income Tax (other than Companies)
  2. Select the type of payment you want to make from the options given
    • (100) for Advance Tax
    • (102) for Surtax
    • (106) for Tax on Distributed Profit
    • (107) for Tax on Distributed Income
    • (300) for Self-assessment Tax
    • (400) for Tax on Regular Assessment
  3. Select your mode of payment
  4. Enter your PAN.
  5. Choose the relevant assessment year
  6. Enter your address in the address fields, it is mandatory to add your City/District, State, and Pin code.
  7. Enter the captcha and click on the “Proceed” button

After clicking on the “Proceed” button following screen will appear.

Step 4: Confirm the details on the above page and click on “I agree”. Then go to “Submit to the Bank”. You can select the bank of your choice, but if you select HDFC the following screen will appear: Challan 280 of income tax - Submit to bank pageStep 5: Select the type of user you are, you will be redirected to the payment page of your Bank from there you will need to add details of tax paid by you.

Step 6: After making your payment download your challan 280 of Income tax evidencing payment made. It is to be used for future use while filing Income Tax Return.

This challan can be used as proof of payment of tax and also while filing Income Tax Return for the assessment year.

It can be concluded, that the income tax online procedure is a quick and efficient replacement of offline mode followed earlier. It is well facilitated by challan 280 of Income tax act.

FREQUENTLY ASKED QUESTIONS (FAQs)

  1. What type of challan should be used for the payment of Advance Tax?

Income Tax Department has issued Challan No./ITNS 280 for payment of advance tax. Challan 280 of Income tax can also be used for payment of Self-assessment tax or tax on regular assessment.

  1. Can receipt received after payment of tax can be used as proof of payment of tax?

Yes, receipt downloaded after payment of tax online is a valid proof of payment of tax of that assessment year.

  1. Can a Company use challan 280 of income tax to pay its corporate tax?

Yes, all persons including a company whether public or private can use challan 280 for payment of tax.

  1. Can challan 280 be also used for payment of tax deducted?

No challan 280 cannot be used for the payment of tax collected, you can use Challan 281 for payment of the same.

  1. Which challan is used for payment of security transaction tax or wealth tax?

Challan No 282 of Income tax is used for the payment of Securities transaction tax, Estate duty, Wealth-tax, Gift-tax, Interest-tax, Expenditure/other tax, Hotel Receipt tax, and Commodities transaction tax.

StairFirst is an e-service platform which provides company registration, corporate compliances, income tax-related and other professional services related to startups / new and old businesses. Contact Us for details.

Related posts

Income Tax Return Due Date FY 19-20

Manish Chawla

How to file GST returns – Step by Step process

Manish Chawla

Digital Seva Common Service Center – Fees, Registration Process and Services

Manish Chawla

Leave a Comment