Say Goodbye to Tax Worries: How Challan 280 Simplifies Your Financial Life

Income tax is an essential revenue source for the government that it uses for the nation’s development. So, prompt tax payment must be a priority for you as an Indian citizen. Before digitisation, filing income tax returns used to be a cumbersome process that consumed a lot of time and effort. However, things have gone digital these days, making tax payments a quick and hassle-free process. Use Challan 280 to pay your income tax online and simplify your financial life by saying goodbye to your tax worries.

What is Income Tax Challan 280?

Ever since the Income Tax Department introduced the e-tax payment system, you can make your tax payments online. Earlier, taxpayers had to visit their designated bank branch and make the payment through cash, cheque, or demand draft. However, for all modes of tax payments, you must submit ITNS 280 or challan 280.

It is a necessary document to pay income tax, including advance tax, surcharge, self-assessment tax, regular assessment tax, etc. All partnership firms, individuals, and companies must use this form to pay their taxes online or offline.

Types of Taxes You Can Pay With Challan 280

You can pay these types of taxes with challan 280:

  • Advance Tax: Payable tax if it is more than Rs 10,000 in a fiscal year.
  • Self-Assessment Tax: Due amount when filing the ITR.
  • Outstanding Demand Payment: Any outstanding demand payment you pay in response to a notice from the income tax department.

Tax Payment Through Income Tax Challan 280

While paying the tax offline, you must fill out the challan form with the correct information and submit it to the bank for income tax payment. You can download the form from the official website of the Income Tax Department. However, if you decide to pay it online, you must follow these steps:

  • Visit the TIN NSDL website, click “e-pay taxes”, proceed to ITNS/challan 280, and enter the necessary details in the form.
  • Select option (0020) if you are a company paying the tax, and if you are an individual, partnership firm or LLP, select option (0021).
  • Select the tax payment’s assessment year.
  • Select the payment option (If the tax payment is for the same financial year according to your income, it should be challan 280 (100) for advance tax. However, if you are paying an outstanding income tax after the financial year’s end, it is a self-assessment tax (300).
  • Select the bank name through which you want to make the payment.
  • Enter your PAN card details.
  • Challan 280 does not contain the tax amount. You can check it on the bank’s website.
  • Enter personal details like your mobile number, residential address, and email ID, write the captcha code and “Proceed”.
  • A confirmation window will appear where you must recheck and confirm the given information. Click ‘Edit’ to modify any information or ‘Submit to the bank’ if everything is correct.
  • Login to your net banking account, and enter the payment details such as surcharge, taxes payable, etc.
  • Click “Calculate tax”, after which you can see the total tax to be paid.
  • Click the “Make Payment” option.

After successful payment, the system generates challan 280, which contains a Challan Identification Number to confirm the receipt of your payment. Save this receipt on your device or take a printout to quote when filing the income tax return.

Important Things to Consider

When paying tax through an Income Tax Challan 280 online or offline, here are a few important things to keep in mind:

  • Assessment Year: It is the next fiscal year. Stay clear between both when filling your challan 280 online.
  • Tax Code: Ensure selecting the correct tax code under the type of payment and tax applicable options. Your online payment will only show if you enter the correct code. 
  • Check Payment Status: Once you make the payment, it may take a few days to display it on the TIN website. So, enter your challan identification number after a few days of payment to check your payment status. 

Now that you know what Challan 280 is and how to pay taxes using it online, ensure paying your taxes promptly without making any mistakes. Check your tax payment status through your bank’s or TAN website and get assurance of a successful payment online. Open an account at a reputable bank and avail of their online services to make it happen from the comfort of your home.

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