How to Pay Your Income Tax Online with Challan 280?

How to Pay Your Income Tax Online with Challan 280

Challan 280 is one way to pay your advance tax, regular assessment tax, self-assessment tax, additional charges etc. online. Let’s discuss how.

1. Steps to Pay Income Tax Due

INCOME TAX PAYMENTINCOME TAX PAYMENT


Step 1: Select Challan 280


Go to the tax information network of the Income Tax Department and click on ‘Proceed’ under Challan 280 option.Challan 280


Step 2: Enter Personal Information

For individuals paying tax:

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

Step 2: Select the type of payment correctly 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
Select ‘Self-assessment tax’, if you have any taxes due to pay while filing your income tax returns.

Step 3: Select the mode of payment you wish to choose. There are two modes of payment available – Net banking or Debit Card

Step 4: Select relevant Assessment Year (AY). For the period 1st April 2018 – 31st March 2019 the relevant AY is 2019-20

Step 5: Enter your complete address

Step 6: Enter Captcha in the given space and click on ‘Proceed’.

Self assessment tax


Step 3: Double check Information

Double-check the information displayed and you will have to submit the request to the bank. Then, you will be redirected to your bank’s payment page.Confirm information

Submit to the bank

Step 4: Check Receipt (Challan 280)

After completing the payment, you’ll get a tax receipt on the next screen where you can see the payment details. You can see the BSR code and challan serial number 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.
Taxpayer counterfoilPAY 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 TAXAJ 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.  

3. Advance Tax

If you have annual tax dues exceeding Rs 10,000, you must pay income tax in advance.Usually, for the salaried class, employers take care of these income tax payments via TDS deductions.

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?

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, and deduct expenses from it. Rent of your workplace, internet bills, mobile bills, depreciation on computers, travel expenses etc. are some expenses.Read more information on freelancers and taxes.

c. How to determine and allow deductions

Reduce deductions you want to claim from your total income and arrive at your taxable income on your tax return. The deductions that come under Section 80C, 80D, 80E or any other you want to claim.(Read more on Section 80C, 80CCC and 80CCD).

d. How to 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 instalments. You can make these payments 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.

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