Online Tax Accounting System (OLTAS) payments and refunds Readers are requested to refer our article on ‘Online Tax Accounting System (OLTAS)’ for the detailed discussion on what is OLTAS, its features and advantages. This is part of our article series on OLTAS.
OLTAS was introduced for collection, reporting and accounting of all kinds of direct taxes. We will discuss below procedure for direct tax payments under OLTAS. You may do it online or offline by visiting any of the OLTAS authorised bank branches.
For ease of explanation, we are using screenshots of Challan No./ITNS 280. Procedure is similar for all types of challan
Select applicable major head code i.e., corporate tax or non corporate tax under taxes applicable:
Enter PAN and Assessment year for which tax is being paid. No need to enter the name of taxpayer. Data with respect to name will be automatically taken from PAN records and displayed in the next screen.
Enter contact details such as address, email id and contact number
Select applicable minor head code
Select mode of payment whether netbanking or by using debit card and choose the bank name from the drop down. As of now debit card payment is enabled only for four banks namely HDFC, ICIC, Indian Bank, Punjab National and State Bank of India. Netbanking payment is available for 25 banks. Also enter captcha image and click on ‘proceed’
Once you submit the data, a confirmation screen will be displayed along with that taxpayer’s details as per PAN.
Post verification, click on ‘submit to the bank. In case details need to modified click on ‘edit’ and follow the same procedure again.
Taxpayer will now be directed to bank website. Either login to netbanking or enter debit card details and complete the payment
On successful payment processing, a challan counterfoil will be displayed containing Challan Identification Number (CIN), payment details and bank name through which e-payment has been made. This serves as proof of tax payment. CIN is a unique number containing the following information:
a. 7 digits BSR Code allotted by RBI to the bank branch where tax is deposited
b. Date of presentation of the challan (DD/MM/YY)
c. 5 digits serial number of Challan in that bank branch on that day
Payment made at banks
You can make payment at any bank, authorised under OLTAS. Bank branch details can be found here
Payment can be made either by way of cash or cheque or Demand Draft
Fill the challan as mentioned in ‘online payment’ and submit to the bank
Tear-off portion from the challan is given to taxpayer after the collecting bank puts a rubber stamp on the challan and its counterfoil with a unique Challan Identification Number (CIN).
Tear off portion of counterfoil is given to taxpayer immediately in case of cash payment and after realisation of demand draft or cheque in case of payments by DD/cheque. However, in case of online payment, challan is generated immediately after payment processing. However, tax payment date will be date of submission of the cheque or demand draft.
Once income tax returns are filed by taxpayers, they are processed by the income tax authorities at the Centralised Processing Centre (CPC) for arithmetical accuracy and matching the tax paid/deducted details entered in the return with details available in income tax department records.
Post return processing, an intimation will be sent to taxpayer intimating the tax payable/refund. In case of refund payable to the taxpayer, the refund orders are generated and transmitted to the income tax refund banker—State Bank of India, CMP Branch, Mumbai as per refund banker scheme.
Refund Banker Scheme
Launched in 2007 by the finance minister to speed up the refund issue process, the refund banker scheme authorizes specific banks to issue refunds on behalf of the income tax department. State Bank of India is the authorized banker under the scheme. Once returns are processed, refunds are transmitted to SBI on the next day of processing.
Either a cheque is sent to the communication address available in the income tax return or credited directly to the bank account of the taxpayer via ECS. Refund banker scheme is available for all kinds of taxpayers (except large taxpayer units) and for returns processed at CPC/by tax officer.OLTAS has enabled taxpayers to check status of refund online after 10 days of their refund transmitted to SBI.
How to check refund status online?
Introduction of OLTAS has made checking refund status easy and it can be checked online by using the below procedure:
Enter PAN, relevant assessment year and captcha image and click on ‘submit’
Refund status will be displayed on the next screen
Refund paid details will also be reflected in Form 26AS in the ‘Tax credit statement’
Key points to be noted in case of refund claim
If the online refund status says- ‘refund had expired’, kindly request for re-issuance of refund by either logging into e-filing portal or by contact your assessing officer in case return was filed manually.
If the Status says – ‘refund had returned’- this could be due to the cheque or demand draft sent to specified communication address has returned undelivered or the bank account details provided for ECS are incorrect. In such cases, contact your assessing officer to get the refund re-issued with right details. In case of e-filing, place a request for reissuance of refund in your e-filing account.
If the status says – ‘refund paid’- this could be a delay from processing banks end. Check with concerned department of refund banker i.e., SBI
If the status says – ‘no demand no refund’, this could mean that return is processed, but income tax department has found that there was no refund payable. In such cases you can file for rectification by submitting all the relevant income and investment proofs.
Additionally, it is important for a taxpayer to intimate the income tax department if the details of the bank account quoted in the income tax return for receipt of refund is closed before receiving the refund or there has been a change of address.
Under ‘My Account’ click on “Refund Re-issue Request”
Enter PAN, relevant Assessment Year, CPC Communication Reference Number if any, Refund Sequence Number (available on the intimation sent by CPC) and Click on ‘Validate’ button.
After validation, taxpayer can select the mode of Refund Reissue i.e., ECS or paper mode
Taxpayer can choose to update the Bank Account Details from the option under the field ‘Do you want to update Bank Account details?
If taxpayer selects ‘Yes’, he has to enter details in the additional fields i.e. Bank Account number, Type of Account and IFSC code
If taxpayer has chosen paper mode of refund, he can choose the address to which the cheque has to be sent under the dropdown ‘Category’.
If the taxpayer selects ‘ITR Address’, address provided in the ITR uploaded will be used
If the taxpayer selects ‘PAN Address’, address provided in the PAN will be used
If the taxpayer selects ‘New Address’, taxpayer has to enter details in the additional fields displayed.
Click on ‘Submit’ to validate the details.
On successful validation, taxpayer will get the success message
Frequently Asked Questions
What is an Income tax refund?
When your income tax paid is more than your income tax liability for a given year, the excess amount paid is refunded by the Income tax department. This refunded amount is known as “Income tax refund”
How to check the status of income tax refund?
Log on to tin.nsdl portal > Services > Status of tax refunds> refund tracking > taxpayer refund (PAN) and click on proceed , also you can directly log in with this link https://tin.tin.nsdl.com/oltas/refundstatuslogin.html. Enter the log in credentials and click submit, a window will open reflecting your refund status.
What are different Income tax refund status?
There can be various income tax refund status
Not determined- please confirm if your return is filed and duly verified.
Refund paid- the refund should be received by you, either in your bank account or by a cheque as selected by you. In case of non receipt of cheque, please track your speed post reference number on TIN website.
Assessment year not visible in refund status- Please file the return as absence of AY means return filing is pending.
No demand no refund- If as per IT department, you are not eligible for refund , then “no demand no refund “ will be reflected. An intimation u/s 143(1) will be issued showing comparison of their calculation on your registered email. Review the comparison and rectify the return if required.
Refund unpaid- This status gets reflected due to error in bank or address details. Please update the correct details on income tax portal and raise a refund reissue request
Refund determined and sent out to the refunding banker- it means a refund request is generated and sent for processing. Refunds should be received within a few days.
Demand determined- it means the IT department has rejected refund and raised a demand u/s 143(1). Intimation will be received with the calculation of tax liability as per IT department either on registered email ID or through physical notice.
Contact Jurisdictional assessing officer – This means the IT department needs some clarification. Contact the AO of your region.
How to make e payment for income tax?
For online payments, please log on to the website tax information network. Select services from the menu and select “e-payment – pay taxes online” Select the Challan No / ITNS 280. A new window will open, select “income tax (other than companies” for the tax applicable, and select the type of payment of tax – self-assessment tax, advance tax, etc. Select the mode of payment, either net banking or through a debit card.
Other details like PAN, assessment year, state and pin code is to be mentioned. On confirmation of data entered, you will be directed to the net-banking site of the bank/fill debit card details. Make the payment by confirming the OTP. A challan counterfoil will be displayed containing CIN, payment details, and bank name. This counterfoil is the proof of payment, which should be saved for future reference.
How to make payment of income tax offline?
Tax payment can be done offline by visiting authorized banks and asking for relevant Challan i.e Challan 280 in case of advance tax and self assessment tax. Submit the filled challan along with cheque to the bank in favor of “Income tax”
Which challan to use for income tax payment?
For online payments, please log on to the website tax information network. Select services from the menu and select “e-payment – pay taxes online” Select the Challan No / ITNS 280 for self assessment/ advance tax.
How to check income tax payment status?
Income tax payment status can be verified tin.nsdl. Select ‘CIN based view’ or ‘TAN based view’ from the landing page. Fill the requisite details, eg in TAN based view input TAN , date and captcha code. A window will open giving you the status of income tax payment against your PAN.