In 2004, the manual process of collection of taxes was replaced by Online Tax Accounting System (OLTAS). It was introduced with an intention to minimize human intervention, thereby reducing errors and facilitating online transmission of details of tax collected, deposited, refunded etc. OLTAS issues a single copy of a Challan and enables taxpayers to track the status of their challans or e-challan deposited in banks online.
There are three types of Challans that are issued:
a. Challan ITNS 280 – issued for depositing income tax (includes self-assessment tax, advance tax, tax on regular assessment)
b. Challan ITNS 281 – issued for depositing Tax Deducted at Source (TDS) and Tax Collected at Source (TCS)
c. Challan ITNS 282 – issued for depositing gift tax, wealth tax, Securities Transaction Tax (STT) and other direct taxes.
Challan ITNS 281 is issued, when the taxpayer deposits TDS and TCS. Therefore, it has to comply with the timelines laid out for deducting and depositing tax.
Due dates for payment of TDS
1. TDS deducted on payments (excluding the purchase of property): 7th of the subsequent month.
2. TDS deducted on the purchase of property: 30th of the subsequent month.
3. TDS deducted in the month of March: 30th April.
In case of delay in deposit of tax, an interest is levied at the rate of 1.5% per month or part of the month from the date of deduction.
There are two processes for filing Challan ITNS 281:
Go to the tin-nsdl website and select Challan No./ ITNS 281. At the time of payment of taxes the following details have to be filled in Challan ITNS 281.
Post-filling in all the details, click on submit to bank and you will be redirected to your bank’s portal to process the payment. Once the transaction is successfully processed, a challan counterfoil shall be displayed containing the CIN No., payment details, and bank name through which e-payment has been made.
For the offline process, the taxpayer can make the payment by personally visiting the bank and submitting a challan. A note has to be taken that the payment can be made via cheque or cash. On submission of the challan, bank will issue a counterfoil receipt back-stamped as a proof of submission.
1. BSR code
2. Challan date
3. Challan serial number
2. Challan date