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The digital wave has practically eliminated manual payments – and government portals were quick to adopt the instant and hassle-free online payment system to collect taxes. Challan 280 is a form which you should fill and submit to pay advance tax, regular assessment tax, self-assessment tax, tax on distributed income and profits, additional charges etc. You can submit this online as well as offline via banks.
  1. Steps to Pay Income Tax Due
  2. Declaring the Taxes Paid
  3. Advance Tax
  4. Self Assessment Tax Paid
  5. Outstanding Demand Payment
  6. Frequently Asked Questions

1. Steps to Pay Income Tax Due

INCOME TAX PAYMENT

Step 1: Select Challan 280

Go to the tax information network of the Income Tax Department and select Challan 280. Click here to go to the government website and pay your tax Non TDS/TCS

Step 2: Enter Personal Information

For individuals paying tax:

Step 1: Select (0021) Income Tax (Other than Companies)

Step 2: Enter your PAN details

Step 3: Select relevant Assessment Year (AY). For the period 1st April 2018 – 31st March 2019 the relevant AY is 2019-20

Step 4: Enter your complete address

Step 5: Type of Payment must be selected correctly

i) For Advance Tax  select ‘(100) Advance Tax’

ii) For Self Assessment Tax select ‘(300) Self Assessment Tax’

iii) For Regular Assessment Tax select ‘(400) Tax on Regular Assessment’

Step 6: Select the mode of payment you wish to choose. There are two modes of payment available – Net banking or Debit Card

Step 7: Enter Captcha correctly in the space

Step 8: Click on ‘Proceed’

e-Challan

Step 3: Double check Information

Depending on the mode of payment you will be redirected to your bank’s payment page. Double check the information displayed and enter the income tax amount to be paid in the income tax field. Click ‘Confirm’ when done. Confirm payment  

Step 4: Check Receipt (Challan 280)

Once the payment is done, you’ll get a tax receipt on the next screen. Here, the details about your payment will be displayed. The BSR code and challan serial number can usually be found on the right side of the challan.
Important: Save a copy of the tax receipt or take a screenshot. You’ll need to enter the BSR code and challan number to enter in your tax return.
Challan Counterfoil   Pay Your Tax Due
If you’ve missed downloading the copy of your tax receipt, you can log in to your net banking account and retrieve it.

SBI Bank account holders
Login and go to E-tax (on the header) > Reprint challan (on the sidebar) to view the challan


ICICI Bank account holders
Login and on the header click on Payments and Transfers > Tax Center > e Tax challans


HDFC Bank account holders: Login and click on ‘Request’ on the sidebar, scroll down and click on Regenerate Direct Tax Challans

2. Declaring the Taxes Paid

After you have made the tax payment, you need to furnish this information in your income tax return. Go to Taxes Paid Summary Page on ClearTax to update this information.
Select the “Self Tax Payments” tab and enter the BSR code and challan number from Challan 280.
Note: BSR code is a 7-digit number and challan serial number is of 5 digits.   Cleartax snapshot Add ChallanMore info on income tax payment…  

3. Advance Tax

If you have annual tax dues of more than Rs 10,000, you must pay income tax in advance. Usually, for the salaried, these income tax payments are taken care of via TDS deductions by the employer.

a. Situations when you have to pay advance tax:

i. You are salaried but have high income from interest or capital gains or rental income

ii. You are a freelancer

iii. You are running a business

b. How to Calculate and Pay Advance Tax?

i. Estimate your total income: Add income from all sources. Include salary income, interest income, capital gains etc., just like you do at the time of filing your income tax return. If you are a freelancer, estimate your annual income from all clients.

ii. Freelancers have to subtract expenses: Freelancers are allowed to deduct expenses from their freelancing receipts. Rent of your workplace, internet bill, mobile bill, depreciation on computers, travel expenses etc. Read more information on freelancers and taxes.

iii. Allow deductions: Reduce deductions you want to claim on your tax return. Deductions such as those allowed under section 80C, 80D, 80E or any other you want to claim. (Read more on Section 80C, 80CCC and 80CCD). Reduce deductions from your total income and arrive at your taxable income.

iv. Calculate tax due on total income: Apply the latest income tax slab rates on your taxable income to calculate your income tax due. Reduce any TDS that may have been deducted from your total tax due. And make sure you have paid according to these installments. These payments of income tax can be made online.

Our CAs can calculate your advance tax liability and help you with paying it online. Seeing a large tax outgo? Don’t worry, our CAs can help calculate your freelancing income and make sure your taxes are optimized. GET A CA TO HELP YOU  

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Due Dates of Payment of Advance Tax for FY 2018-19

 Dates For Individuals
On or before 15th June Up to 15% tax
On or before 15th September Up to 45% of tax
On or before 15th December Up to 75% of tax
On or before 15th March Up to 100% of tax
Non-payment of advance tax can result in penal interest levy under section 234B and 234C.

4. Self Assessment Tax 

Your income tax return cannot be submitted to the Income Tax Department unless you have paid tax dues in full. Sometimes, you may see tax payable at the time of filing your return. This tax is called Self Assessment Tax and must be paid online to ensure successful e-filing. Usually, interest under section 234B and 234C will also have to be paid along with your tax due if you are paying tax after 31st March. When you are e-filing with ClearTax, our system will automatically tell you how much tax you need to pay to file your return. You can also get your return verified from a CA and make sure your taxes are paid appropriately.

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5. Outstanding Demand Payment

Sometimes, you may have to make an income tax payment to comply with an income tax demand notice. If you agree with the assessing officer and are ready to pay the demand, such income tax can also be paid online which is otherwise called the tax on regular assessment.

6.Frequently Asked Questions

 
  • What is included in my total tax payable during a year?
    You arrive at your income taxes due by totalling all your income, availing all applicable deductions, determining your taxable income and then calculating your taxes at rates applicable to the income slab you fall under.
    As a next step, if your income falls between Rs 50 lakhs and Rs 1 crore, a surcharge of 10% would apply and if your income exceeds Rs 1 crore, a surcharge of 15% would apply on taxes due. Further, 4% of taxes due (plus surcharge if any) will have to be added by way of health and education cess.
    If your income during a year is less than Rs 3.5 lakhs, you are eligible to claim a rebate under Section 87A upto Rs 2,500 or taxes due, whichever is lower.
  • Is is necessary for me to pay taxes online? If no, how can I pay it?
    Law mandates that only the following taxpayers must mandatorily pay their taxes online:
    a. Companies
    b. Taxpayers other than companies that are subject to audit under Section 44AB
    The remaining taxpayers can pay taxes in physical form by submitting the challan at designated banks. However, you can also avail the e-payment option as it is easy and saves time too.
  • Are there any benefits of paying taxes online?
    The answer to this is definitely a “Yes”. E-payment saves a lot of time, is easy and this facility can be availed of anytime and anywhere. Further, unlike physical mode of payment where the credit of taxes paid goes to the government atleast after a day only, online payment gives credit to the government immediately.
  • What are the basic things I need to be prepared with in order to may my taxes online?
    For making e-payment of taxes, make sure you have an internet connection and also have net banking enabled in any of the authorized banks. In case you do not have a net banking enabled account, you can make payment using net banking of any other person but make sure the taxes are discharged in your name and against your PAN only, for you to get the credit
  • What all taxes can be paid electronically?
    These days, online facility of payment has been enabled for almost all kinds of taxes. Here are some taxes that can be paid online
    a. Income tax
    b. Corporate tax
    c. TDS (Tax Deducted at Source)
    d. TCS (Tax Collected at Source)
    e. Securities Transaction Tax (STT)
    f. Equalization levy
  • What are the various challans that are applicable for various types of payments?
    The various challans and the nature of tax payments for which they are applicable are captured in the below table:
    ChallanNature of tax payment
    ITNS 280Income tax and corporate tax
    ITNS 281TDS and TCS by corporate and non-corporate deductors/ collectors
    ITNS 282Payment of STT
    ITNS 284Income tax and corporate tax in case of undisclosed foreign income and assets
    ITNS 285Equalization levy
  • Whom should I contact if I face any issues while making tax payment online?
    While making e-payment, in case you encounter any problem at the NSDL website, you can contact the TIN call center.
    In case you face any problem at the payment gateway of your bank, you can contact your bank.

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  1. Learn the common reasons for getting tax due at the time of e-filing. You are likely to see a tax due when you've changed jobs and if you have income other than salary for which you haven't paid tax yourself.