I file my Income Tax Return by 31st July every year because it is the last date for filing Income Tax Return in India. However not many of us are aware about how to pay income tax online in India using Challan 280.
We usually depend upon our CA’S or Tax Consultant to file our Income Tax Return which is the main reason that many of us are not aware about the process to pay income tax online in India using challan 280.
It takes hardly few minutes to pay your income tax online.
There can be different scenarios when you might have to pay income tax even after TDS (Tax Deducted at Source) has already been effected on your income and those might be:
- When TDS is less than your tax liability and your income for the financial year was more.
- When you had income from other sources which was not considered for your TDS
- And when there might be a notice from Income Tax Department to pay your balance tax liability.
What is the meaning of Challan 280?
It is the form which is required to be used for filing income tax if you are filing your :
- Advance Tax,
- Self Assessment Tax,
- Regular Assessment Tax,
- Surcharge, Tax on Distributed Profit or
- Tax on Distributed Income.
Offline tax payment method:
These taxes can also be paid offline but first you have to download the form 280 and fill in the details and submit the form/challan at the banks designated to collect income tax or through e-filing mode of income tax hrough internet, using net-banking facility
E-Filing of Your Income Tax : A Step-by-Step Guide
It is quite simple and fast if you go for e-filing of your income tax using online utility of Income Tax Department. The income tax payments are made through internet using net banking facility.You can use this facitility if
- You have a bank account with net-banking facility, and
- Your bank provides the e- payment facility.I
In case your bank does not have an online payment facility or is not an authorized bank then you can make electronic payment of tax from the account of any other person who has an account with the authorized bank having online facility. However, the challan for making such payment must clearly indicate your Permanent Account Number (PAN).
Step 1 :
Step 2 :
Step 3:
Enter PAN / TAN (as applicable) and other mandatory challan details like accounting head under which payment is made, address of the tax payer and the bank through which payment is to be made etc.
- Select option “0021 Income Tax (other than Companies)”
- Select proper AY. For FY 2017-18 , the AY is 2018-19.
- Under the “Type of Payment”, choose the option “(300) Self Assessment Tax”.
- Choose the mode of payment which can be net banking or a debit card. Accordingly you may have to choose a bank.
- And then click the tab “Proceed” once you have entered the captcha.
Step 4 :
On submission of data entered, a confirmation screen will be displayed. If PAN / TAN is valid as per the ITD PAN / TAN master, then your full name as per the master will be displayed on the confirmation screen.
Step-5
On confirmation of the data so entered by clicking on “Submit to the Bank” , you will be directed to the net-banking site of the bank.
You will have to login to the net-banking site with the user id / password provided by the bank for net-banking purpose and enter payment details at the bank site.
After login you will see the screen with the detailsˆ like below (ˆas an illustration only)
Step 6 :
On successful payment a challan counterfoil will be displayed containing CIN (Challan Identification Number), payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.
You may verify the status of challan in the Challan Status Inquiry at NSDL-TIN website using CIN after a fortnight once the payment is made.
You may select the Challan Status Enquiry link.The search criterion can be through following :
- CIN based view
- TAN based view
- Collecting Bank Branch
- Nodal Bank Branch
The following details can be viewed :
- BSR Code
- Date of Deposit
- Challan Serial Number
- Major Head Code with description
- TAN/PAN
- Name of Tax Payer
- Received by TIN on (i.e. date of receipt by TIN)
- Confirmation that the amount entered is correct (if amount is entered)
The Challan Status may look like :
Advance Tax or Self Assessment Tax
You can also verify the Advance tax and the Self Assessment Tax paid details in the “Part C of Form 26AS”. If the details do not match then you may have to contact the bank through which you made the tax payment.It may take some time to get updated on the Form 26AS, therefore you may check after 3-4 working days once you paid the tax.
FAQ'S- E-Tax Payment
In case your bank does not have an online payment facility or is not an authorized bank then you can make electronic payment of tax from the account of any other person who has an account with the authorized bank having online facility. However, the challan for making such payment must clearly indicate your Permanent Account Number (PAN).
If encountered any error on e-tax website kindly contact TIN call centre at 020 – 27218080 or write to us at 
(Please indicate the subject of the mail as Online Payment of Direct Tax ).
What You Should do Once You Have Paid Income Tax Online Using Challan 280, in India?
Once you are done with E-filing of income tax in India using Challan 280, you will have to
- provide the details in your Income Tax Return. In case of Self Assessment Tax being paid online using Challan 280, you will have to fill the details in Tax Paid section , illustration shown below.
- and show that the tax lability has become zero after the payment of the tax
- and finally submit the return.
