What is an Income Tax Challan? - Basics of Income Tax

Last Updated: 3 Apr 2024

Challan is a term used for a measure by which you need to pay taxes to the government. A tax that is paid through a Challan is initially deposited with the authorised banks, and later on, it is deposited with the income tax department. Paying through a challan is possible both online via net banking and offline by challan submission at designated bank branches.

The income tax challan is an easy form that is used by the government to pay taxes. The tax is deposited in the authorised banks and never deposited directly to the income tax department. An individual looking to pay the income tax can do so online via net banking, or if they feel like it, they can also visit the bank and pay the taxes manually. In this blog, we will take a look at the basics of income tax challan.

What Is Online Tax Payment?

With the innovation of technology, the conventional methods of mailing tax returns involving time and paperwork are no longer viable. Online tax payment procedures were introduced to simplify tax payments and save time, effort, and money. The income tax department now allows an e-tax system that streamlines the procedure by enabling taxpayers to submit tax information online, making it faster and more convenient. You must know you cannot complete your online tax payment without the income tax challan.

How Can You E-Pay Tax Online?

Let us take a moment to give you a simple explanation and a step-by-step guide on how you can e-pay your tax online after acknowledging the e-challan income tax:

• First and foremost, you need to visit the income tax portal. On the homepage, you must locate the ‘Quick Links’ section on the left. After that, click on the e-pay tax option and use the search bar to find e-pay tax.
• After that, you need to put your PAN number on the field and double-check if it’s correctly put. You also need to re-put the pan number on the right side for the system and understand that you have put the right number. Below those, you will see a field where you must put your contact number. When you submit your phone number, you will receive a 6-digit PIN, which you need to write down on the field and confirm.
• You must carefully select the correct payment type and assessment year. Choose the first box, which is labelled as income tax, and click on Proceed. Select the year 2023-24 (whichever is appropriate for you) from the dropdown of the assessment year. Under the payment type, go with the select assessment tax (300) option and then click on continue.
• Moving forward, you are required to enter accurate amounts under relevant categories.
• Following that, you need to select the payment method. Consider opting for the payment method and the bank to make the tax payment and press on continue. From internet banking to credit cards or UPI, there are many convenient payment methods. As soon as you click on continue, you may easily preview the challan view. Consider double-checking the payment information for accuracy. Go ahead and click on pay now and make the payment. You may also modify the details if you wish to.
• After that, you need to click on the checkbox to agree with the terms and conditions. Click on submit to the bank to proceed with the payment.
• You will receive a confirmation as soon as the tax payment has been submitted successfully. Make sure you download the challan, as you will require the BSR code and the number of challans to finish the return filing process.
• Once you are done, all you are required to do is to update the payment information.

e-TAX Payment Eligibility

An echallan income tax is a must in terms of payment eligibility. Beginning from April 1st, 2008, significant taxpayers are required to make their tax payments online. It is a mandatory requirement that includes the following categories:

• All assesses (other than companies) to whom the provisions of section 44AB of the Income Tax Act, 1961 are applicable
  It refers to non-corporate taxpayers who meet the criteria specified in section 44AB of the Income Tax Act 1961. Section 44AB is all about tax audit needs, which are mandatory for businesses and individuals meeting certain financial thresholds.
• All corporate assets
  It includes all the organisations irrespective of the type and size of the business.

Documents Required for Paying Income Tax Online

The following documents are needed to pay income tax online: –

• PAN Card
• Home loan statement
• Capital gain Statement
• Interest certificates issued by bank or post office
• Form 26AS
• Tax saving investment proof
• Aadhaar Card
• Form 16
• Salary slips and bank statement
• Form 16A, Form 16 B, or Form 16C

Benefits of Online Income Tax Payment

Gone are those days when we had to take a day off from our work and travel for hours to go and file our tax returns. These days, it has been made online, and there are multiple benefits of paying your income taxes online, such as:

• Online payment procedures give a high level of convenience. Taxpayers may make the payments from anywhere and at their convenience. All they need is a good internet connection along with some vital information.
• These kinds of payment systems streamline the procedures, enabling the taxpayers to finish their transactions quickly and effortlessly. It takes away the requirement of manual paperwork, waiting in long queues and filling out forms.
• When the taxpayers are making an online payment, they receive an instant confirmation that their payment has got processed. It allows peace of mind and eliminates any kind of uncertainty regarding whether the payment was credited or received.
• Online payment platforms are reputed to employ robust security measures to safeguard users’ financial information. Encryption techniques and secure servers make sure that the sensitive data is sorted and transmitted safely.
• Additionally, there are some online patent platforms which will give you a reminder regarding your onlineDeductors utilize this challan to pay the Tax Deducted at Source (TDS). TDS is deposited using it for commission, rent, interest, salary, and other payments. income tax payment. It helps taxpayers be organised and on time with their income tax payments online.

Different Types of Challan That Are Applicable for Various Tax Payments

• Challan No. ITNS 280
  Individuals and non-corporate businesses pay their income taxes with this challan. It is used to pay taxes on dispersed income, advance tax, regular assessment tax, and self-assessment tax.
• Challan No. ITNS 281
  Deductors utilize this challan to pay the Tax Deducted at Source (TDS). TDS is deposited using it for commission, rent, interest, salary, and other payments.
• Challan No. ITNS 282
  The payment of hotel receipts tax, securities transaction tax (STT), and other taxes is made with this challan
• Challan No. ITNS 283
  The Equalization Levy, a tax on certain digital services offered by non-resident businesses, is paid via this challan.
• Challan No. ITNS 284
  Collectors use this challan to pay the Tax Collected at Source (TCS). TCS is deposited using it when certain items, such as minerals and scrap, are sold.
• Challan No. ITNS 285
  The tax under the Income Declaration Scheme (IDS) is paid with this challan. It lets people report and pay taxes on income that was not reported for a predetermined amount of time.

Steps To Pay The Due Amount of Income Tax Offline

The steps to pay the due amount of income tax offline are as follows:-

• Step 1: Challan 280 can be downloaded online from the income tax website in order to use the offline method.
• Step 2: Provide your PAN, assessment year, home address, phone number, and email address.
• Step 3: Bring the completed form and the amount of tax you owe to the bank in person to pay your income tax.

Wrapping Up

While paying taxes is something nobody feels excited to do, it is essential that you pay your taxes on time. With income tax challan and strong internet connectivity, paying taxes has just been made easier.

Frequently Asked Questions

What is tax payment online?

With the innovation of technology, the conventional methods of mailing tax returns involving time and paperwork are no longer viable. Online tax payment procedures were introduced to simplify tax payments and save time, effort, and money. The income tax department now allows an e-tax system streamlining the procedure by enabling taxpayers to submit tax information online, making it faster and more convenient.

Is it better to pay income tax online?

Online payment procedures give a great level of convenience. Taxpayers may make the payments from anywhere and at their convenience. All they need is a good internet connection along with some vital information.

Are online platforms safe for income tax payments?

Online payment platforms are reputed to employ robust security measures to safeguard users’ financial information. Encryption techniques and secure servers make sure that the sensitive data is sorted and transmitted safely.

Why should we pay income tax online?

These kinds of payment systems streamline the procedures, enabling the taxpayers to finish their transactions quickly and effortlessly. It takes away the requirement of manual paperwork, waiting in long queues and filling out forms.