Jul 282013
 
ITR payment online main

Now Income tax department has made tax payment online and it is quiet easy to pay the tax but as usual the terminology is not as simple as it seems. Here you need to select the right challan number by which tax payer need to pay the tax otherwise it may cause problem. We would like to provide step by step process on how to pay Income tax online and what each challan numbers means

You can directly go to the link https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp which is provide in the website www.incometaxindia.gov.in where you need to click on ‘pay taxes on-line’.  Below is the screenshot of the direct link

ITR payment online Screen

Select the appropriate challan in which you would fall. Below is the details of each challan that would help you to select the appropriate form

CHALLAN Type 280 (payment of Income tax & Corporation Tax) – This form is applicable to pay tax by the corporate and non corporate entity. This challan can be used by Individual or Partnership Firm for depositing their Income Tax liabilities.

You can use this form to pay for

ADVANCE TAX – For the current financial year

SURTAX- special tax on the profits of certain companies

SELF ASSESSMENT TAX  – If you are filling the tax for last year and you need to pay tax

TAX ON DISTRIBUTED PROFITS

TAX ON REGULAR ASSESSMENT

TAX ON DISTRIBUTED INCOME

Basically above options will come in the form and you need to select the option for which you want to pay.

CHALLAN type 282 (payment of Security Transaction Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax /Other direct taxes & Gift tax)

This challan can be used for above options and after opening the form you need to select the type of tax that is applicable. Options available are

SECURITIES TRANSACTION TAX   - Tax levied on every purchase or sale of securities that are listed on the Indian stock exchanges

HOTEL RECIEPTS TAX – tax levied in respect of the chargeable receipts accruing or arising to a hotel in which the room charges per day per individual

ESTATE DUTY – tax on the total market value of a person’s assets (cash and non-cash) at the date of his or her death

INTEREST TAX – Tax levied on the interest earned during that financial year like interest on you bank accounts.

WEALTH TAX – Wealth tax is charged for every assessment year in respect of net wealth of the corresponding valuation

GIFT TAX – tax on money or property that one living person gives to another

EXPNDITURE/OTHER TAX

This challan can be used to pay for below options

ADVANCE TAX – For the current financial year

SELF ASSESSMENT TAX – If you are filling the tax for last year and you need to pay tax

TAX ON REGULAR ASSESSMENT

So For example if you need to pay tax form the interest that is received in bank then uses this challan.

CHALLAN Type 283 (payment of Banking Cash Transaction Tax and Fringe Benefits Tax)

This challan is used for payment of Banking cash transaction (Abolished from 1st April 2009), this form can also be used for making payment of FBT (FBT has been abolished in the year 2009 Union Budget).

Please not the following below points before filling the challan 280, 282 and challan 283

  • Quote the correct Permanent Account Number (PAN). PAN is a unique 10-digit alphanumeric number allotted by ITD to all taxpayers.
  • Name & address on each challan used for depositing the tax.
  • Use Separate challans to deposit taxes for each of the above-mentioned tax and indicate the relevant code (for example 100 for advance tax,

 

Challan type 281 for deposit of TDS/TCS – This challan form is for payment of from corporate or non-corporate. Please make sure to Quote the correct 10-digit Tax Deduction Account Number (TAN), and name & address of the deductor on each challan used for depositing tax. You may verify your TAN details from Income Tax Department web-site (www.incometaxindia.gov.in) prior to depositing TDS/TCS.

Use separate challans to deposit tax deducted under each section and indicate the correct nature of payment code in the relevant column in the challan. (For example, 94C for payment to contractors and sub-contractors, 94I for rent. List of codes is mentioned at the back of challan 281).

Use separate challans to deposit tax deducted for different types of deductees,i.e. Corporate or Non Corporate, and indicate the type of deductees in the relevant column in the challan. (For example, in challans to deposit tax deducted from corporate deductees, indicate “COMPANY DEDUCTEES – 0020” and for non corporate deductees indicate “NONCOMPANY DEDUCTEES – 0021”).

A challan counterfoil will be available instantaneously on the screen with CIN (challan identification number). The Challan Identification Number (CIN) on this counterfoil should be quoted in Return of Income.

Print the counterfoil and also save it in the computer if required.

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