Challan 280: Challan 280 is the official instrument for the purpose of tax payment. This Income Tax payment may be in the form of Advance Tax, Self Assessment Tax, Tax on Regular Assessment, Surcharge, Tax on Distributed Profits or Tax on Distributed Income. Income Tax can be paid online as well as through cheque, cash, demand draft at different designated bank branches. Challan No/ ITNS 280 is required to be filled and submitted in any mode of tax payment, be it either online or offline. While filling Challan 280 for self-assessment tax, advance tax, one may make a mistake such as mentioning the wrong Assessment year or Incorrect PAN or TAN etc. It is essential to correct such errors; otherwise, the Tax would not be credited to you in the correct year, and one might get a notice from the Income-tax department for Tax due. This article will help us to rectify the mistakes made while filling Challan 280.
- Steps to Pay Online Challan 280
- Correction of Challan 280
- Online Correction of Challan 280
- Required Format for Correction of Section Challan 280
- Challan 280 Offline Correction
Step 1: Visit the tax information network of the IT dept. And click on continue below the Challan 280.
Step 2: Enter Personal Information
For individuals Paying Tax
S1: Select (0021) Income Tax (Other than Organisations)
S2: Choose the payment type precisely from the following:
- (100) Advance Tax
- (102) Surtax
- (106) Tax on Distributed Profit
- (107) Tax on Distributed Income
- (300) Self Assessment Tax
- (400) Tax on Regular Assessment
Choose ‘Self-assessment tax’ if you have any taxes due while registering your income tax returns.
S3: Select the payment mode available – Net banking or Debit Card.
S4: Select proper Assessment Year (AY).
S5: Enter your address
S6: Enter Captcha and click on ‘Proceed’.
Step 3: Check information and submit
Double-check the data, and submit the application to the bank. One will then be redirected to the payment page of the bank.
Step 4: Check Receipt
After the completion of the payment, a tax receipt is received on the next screen, with the details of the payment. The challan serial number and BSR code can be seen on the right side of the challan.
In a financial year, if the Tax payable is Rs. 10,000 or more (after considering TDS), then the Tax is paid in the preceding year itself. This is called Advance Tax. Advance tax indicates income tax paid in advance alternatively of lump sum payment at year-end. One can pay this tax in the financial year preceding the assessment year in four instalments, and the due dates are 15 June, 15 September, 15 December and 15 March. The advance tax covers all the taxpayers. The employer deducts TDS from salary for salaried people.
Self Assessment Tax
Self Assessment tax constitutes that part of the tax that a person needs to deposit when after the filing of tax return, there is a remaining balance tax that is not your advance tax, TDC or TCS. Self-assessment tax must be deposited before filing the return. It is the balance tax that an assessee has to return on the income that has been assessed.
Tax Paid when the Income Tax Department raises demand during an assessment is known as Regular Assessment Tax. Regular assessment tax is assessed and becomes due during an evaluation of the Income Tax Return after the last financial year has completed.
Digitisation of tax paid through physical challans by taxpayers in all direct tax payments takes place on a daily basis. This process is conducted by the collecting banks, wherein the information is transferred to TIN via a link cell.
Presently, the banks are authorised to correct data relating to three fields only, i.e. major head code, amount and name. The other errors can be amended only by the assessing officers.
Challan 280 is the official instrument for the purpose of tax payment such as advance tax, routine assessment tax, self-assessment tax, added charges etc., online. If the challan 280 is submitted online, then only the assessing officer can correct the form. One can make the correction by submitting a letter to the Income Tax Assessing Officer in a detailed format or can visit the office personally and submit the letter.
- Assessing Officer: The person who has official power to make tax settlements and decisions for the assessee liable to tax under the Act is the assessing officer. The officer’s designation may differ according to the volume of income/nature of trade as prescribed by the Central Board of Direct Taxes(CBDT Board), the department which deals with income tax. He may be an Assistant Commissioner, Income-tax Officer, Joint Commissioner, Deputy Commissioner or an Additional Commissioner.
- Letter Format: One needs to submit a letter to their Income Tax AO for correction in challan data along with the photocopy of the challan. Required Format for Correction of Section is given below:
One needs to submit a letter to their Income Tax AO for amendment in challan data along with the photocopy of the challan.
Required Format for Correction of Section is given below:
Sub: Application for Correction and changing of Assessment Year in the challan.
With due respect, I would love to notify you that while making the payment of Self Assessment Tax of Rs 12334 the AY 2014-15, I wrongly mentioned the AY 2011-12 in ITNS 280.
I hereby request you to make the required change to the records. The photocopy of the challan is also enclosed with this letter.
I deeply regret my careless error.
If the Challan 280 is paid in physical form (by going to the Bank), one can request the Bank to rectify the mistakes and information within a time frame or period based on the information needed to be updated. If there is a lapse of time frame, the request is to be made to the Assessing Officer. The time period within which the Taxpayer can correct through Bank are given below:
- PAN/TAN period of correction is within seven days from the challan deposit date
- Assessment Year period of correction is within seven days from challan deposit date
- The total Amount period of correction is within three months from the challan deposit date
- Major Head period of correction is within three months from challan deposit date
- Minor Head period of correction is within three months from challan deposit date
- Nature of Payment period of correction is within three months from the challan deposit date
For requesting a correction, the following procedure is:
- For each challan, a separate letter is submitted
- The Taxpayer has to submit the application form to rectify the errors to the concerned bank branch.
- Copy of the original challan counterfoil is to be added.
- For Corrections of challans 280, 282, 283, a PAN card copy is needed to be attached.
- In case of correction for payments done by a taxpayer, the original signature with the seal of the non-individual Taxpayer is required to be attached with the application form.
- The duration of time taken for the correction by the bank is seven days from the date of receipt of the correction request from the Taxpayer.
Income tax filing can be an arduous task if one does not follow proper procedure. In this process, Challan 280 is a crucial element. Challan 280, however, has a strict procedure and an order to itself. This article has tried to highlight the different aspects of Challan 280 and how a person while paying tax, must be careful in conducting the whole process.