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Introduction:

It is a mistake to assume that the goal of all businesses is to avoid or minimize their tax obligations. There are some citizens who want to voluntarily pay their taxes first. This is not just kindness, but a proactive approach. By understanding or calculating your annual income, you can calculate and pay your income tax liability in advance. This process, called self-assessment, allows individuals to meet their tax obligations ahead of their due date.

The government has introduced Challan 280 Online for taxpayers to facilitate online payment of tax on personal income assessment. This method simplifies the process of paying regular taxes, advance taxes and surcharges. Since  entire process is done online.  Let us explore online income tax filing using Challan 280 in detail and explore its benefits.

Challan 280 :

Challan 280 also known as ITNS No. 280 is a form for income tax. This form allows individuals to pay a variety of taxes  including regular assessment tax, advance tax, self-assessment tax, surcharge, and tax on distributed income .

Challan 280 enables you to pay taxes through online and offline methods. You can download the form from the official income tax website and visit the designated bank branch to complete the payment. Alternatively, you can conveniently pay your income tax challan online through TIN NSDL’s website.

Types Of Challan 280  Series:

Individuals are taxed differently depending on their legal status and source of income, creating five different tax brackets to facilitate this income

• Challan 280 is primarily used for income and corporate taxes.
• Challan 281 has been specified for payment of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS).
• Challan 282 is used for payment of stock related tax (STT).
• Challan  284 is specifically designated for foreign income taxes and corporate taxes.
• Challan 285 is used for payment associated with the equalization levy.

How to Make Online Income Tax Payments Using Challan 280:

Follow these steps to pay income tax online:

Step 1: Visit the official website of TIN NSDL.

Step 2: Go to ‘Non-TDS/TCS’, select ‘Challan No./ITNS 280’ and click on ‘Proceed’.

Step 3: Complete the form provided on the following page within a 30-minute timeframe.

Step 4: Provide the required information as follows

• Tax applicable
• Enter your PAN number and full name exactly as they appear on your PAN card.
• Assessment year
• Identify the type of payment(e.g., advance tax, self-assessment tax, etc.).
• Select the name of the bank and  mode of payment

Step 5: Enter your full address including zip code and country name, followed by your mobile number and email ID.

Step 6: Enter the security code and then click on the ‘Proceed’ button.

Step 7: If any information is incorrect, click ‘Edit’ on the confirmation page and return to the previous page. Otherwise, click ‘Submit to the Bank’.

Step 8: Log into your bank account and enter details of income tax due, fees, education cess, and any applicable interest and penalties.

Step 9: After paying the tax, you will get a challan counterfoil with CIN (Challan Identification Number). You can take screenshots, download, or print for your records.

How to Make Offline Income Tax Payments Using Challan 280:

Alternatively, you can download the Challan/ITNS 280 from the official website of the Income Tax Department (ITD) and submit the physical form to the designated bank branches. Here are the steps to follow:

Step 1: Visit the Income Tax India website and select your taxpayer type (individual, corporate, non-resident, etc.).

Step 2: Go to ‘Forms/Downloads’ section and select ‘Challans’.

Step 3: You will be directed to a list of all the challans you can download, with ITNS 280 at the top of the list.

Step 4: If you choose to download the form in PDF format or as a fillable form, click on the preference option.

Step 5: Print the form and fill all required details, including your PAN, year of assessment, residential address and contact details.

Step 6: Submit the completed form along with your tax return to the designated bank branch, where you can pay by cash, cheque, or demand draft.

The bank will issue a stamped receipt to confirm the payment, which will serve as proof for future reference.

Declaring the  Paid Taxes:

In order to declare tax in India, individuals and companies have to follow the guidelines laid down by the Indian Income Tax Department. Here are the details of the event:

• obtain Permanent Account Number (PAN): Every taxpayer in India needs a PAN, a unique ten-character identification number. If you do not have a PAN, you can apply for one through NSDL or UTIITSL website.
• Identify the correct tax form: The form required to file your tax return varies depending on your source of income and taxpayer class. Common forms for individuals include ITR-1 (simple) and ITR-2. You can find the relevant form on the Income Tax Department’s website.
• Collect necessary documents: Collect all relevant documents necessary to calculate taxable income, including payslips, bank statements, deposit records, mortgage receipts, discounts or with the exception and any other supporting documentation
• Calculate your taxable income: Calculate your total income for the financial year by taking income from all sources like salary, job income, rental income, capital income, plus other sources of income and subtract applicable deductions and exemptions to arrive at taxable income.
• Calculate tax liability: Use tax returns and appropriate rates to determine tax liability. Be sure to check the latest updates from the Income Tax Department for accurate figures, as tax returns and rates are amended from time to time.
• Prepare taxes: Meet your tax obligations through online or offline means including net banking, debit cards, or visits to authorized bank branches. The Tax Office designates a specific bank to make payments. Once completed, you will receive a Conveyance Identification Number (CIN) or Tax Deduction Account Number (TAN) to confirm the payment.
• Prepare taxes: Meet your tax obligations through online or offline means including net banking, debit cards, or visits to authorized bank branches. The Tax Office designates a specific bank to make payments. Once completed, you will receive a Conveyance Identification Number (CIN) or Tax Deduction Account Number (TAN) to confirm the payment.
• Verification of tax returns: When filing tax returns online, it is important to ensure that they are valid within the specified timeframe. Verification can be completed electronically using Aadhaar OTP, EVC (Electronic Verification Code), or by submitting a signed physical copy of the ITR-V to the Central Processing Center (CPC) within 120 days of submission .

Advance Tax Payment:

• If your annual tax liability exceeds Rs 10,000, making advance income tax payments becomes necessary Generally, for the salary category, these payments are taken care of by employers by way of TDS (Tax Deducted at Source) deduction.
• All sources must be considered when calculating income tax. Freelancers must calculate their annual salary and deduct reasonable expenses such as rent, fees and travel. Look for items that have been given detailed independent tax guidance.
• You want to provide the amount of deductions from your gross income to determine the taxable income on the tax return. These deductions can be broken down into sections such as section 80C, 80D, 80E, or any other relevant section.

Correcting Details on Challan 280:

If an assessee discovers any error in his invoice, he can approach a designated bank authorized to accept tax for rectification. Assessees should submit the original tax return and photocopy of their PAN card. At the bank branch, the disciplinary form must be requested and attached along with necessary documents to initiate the disciplinary process.

Below is the period when banks can accept corrections from the date of challan payment:

• Correction of Total Tax Amount: Within 7 days from the invoice date.
• Assessment Year correction : Within 7 days.
• PAN/TAN correction: Within 7 days.
• Nature of payment: 3months

Conclusion:

Among all the regulatory requirements citizens must adhere to, taxation stands out as the most complex and least intuitive. Tax policies and regulations are crafted from a macroeconomic perspective, inaccessible to the average person.  They not only ensure meticulous handling of tasks like Income Tax Challan 280 online payment but also structure your taxable income to minimize tax liability. For any further tax-related inquiries or assistance with advance tax processing, reach out to our team of tax experts. They’ll delve into your requirements and provide comprehensive guidance tailored to your needs.