22/04/2015

What to Do & Don'ts for Payment of Taxes

Taxpayers, deductors or collectors can pay direct taxes through Authorised Bank branches either physically, through ATM or through internet.

Type of Challans to be used for tax payments

Challan
Description
ITNS 280
For depositing Advance tax, Self Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company and Tax on Distributed income to unit holders.
ITNS 281
For depositing TDS/TCS by company or non company deductee
ITNS 282
For depositing Securities transaction tax, Estate duty, Wealth-tax, Gift-tax, Interest-tax, Expenditure/other tax and Hotel Receipt tax
ITNS 283
For depositing banking cash Transaction Tax and FBT

Do’s
1. Mandatory details required to be filled in challan
a) PAN/ TAN
b) Name and address of the taxpayer (for physical challans)
c) Assessment Year
d) Major Head, Minor Head
e) Type of payment 

2.  Use challan type 281 for deposit of TDS/TCS payments.
a) Quote the correct TAN, name & address of the deductor on each challan
b) Verify your TAN details from Income Tax Department web-site (www.incometaxindia.gov.in) prior to depositing TDS/TCS.
c)  Use separate challans to deposit tax deducted under each section and indicate the correct nature of payment code in the relevant column in the challan.
d) Use separate challans to deposit tax deducted for different types of deductees. 

3. For Non TDS/TCS payments use challan types 281/282/283 as applicable.
a) Quote the correct PAN, name & address on each challan used for depositing the tax.

4. Mention/verify the correct Financial Year and Assessment Year in the challan before tax payment.

5. Payment confirmation: – Ensure that the Challan Identification Number (CIN) has been provided on the counterfoil issued after successful payment of tax. Challan Identification Number (CIN) comprises of the following
a) Seven digit BSR code of the bank branch where tax is deposited
b) Date of Deposit (DD/MM/YY) of tax
c) Serial Number of Challan 

6. Verify the tax payment information submitted to the bank.
a) Details available on the TIN website www.tin-nsdl.com under the link “Challan Status Inquiry”
b) In case the details are not available then you may contact the bank branch where the tax has been deposited. 

7. In case the counterfoil issued by the bank has been misplaced, kindly contact the respective bank/branch for details regarding the same.
8. Rectification/Correction in the Challan:- For rectifying errors in a physical challan, taxpayer may approach the Bank. Prescribed timelines for the same are as per table below

Sr. No.
Type of correction on challan
Period for correction request (in days)
1
PAN/TAN
Within 7 days from challan deposit day
2
Assessment Year
Within 7 days from challan deposit day
3
Total Amount
Within 7 days from challan deposit day
4
Major Head
Within 3 months from challan deposit day
5
Minor Head
Within 3 months from challan deposit day
6
Nature of payment
Within 3 months from challan deposit day

Click here for more details.

9. Please visit TIN website www.tin-nsdl.com for details on preparation and furnishing TDS/TCS statements.
Don’t
1. Do not use incorrect type of challan for payment of taxes.
2. Do not make mistake in quoting PAN / TAN.
3. Do not give PAN in place of TAN or vice versa.
4. Do not use a single challan to deposit tax deducted for corporate and non corporate deductees.
5. Do not use same challan for depositing various types of tax like advance tax, self-assessment tax etc.
6. Do not make mistake in the F.Y. and A.Y. to be indicated in the challan.
7. If you have multiple TANs for the same division filing TDS statements, do not use different TANs in different challans. Use one TAN consistently and surrender the others.

Source: TIN-NSDL


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