Challan 280 of income tax act 1961 is a form that is to be fill in order to pay tax to Govt authorities.
What is the meaning of challan in generic sense?
The word challan utilizes in various senses which means official receipt for payment , also means a fine for breaking traffic rules and others. Further, Challan is a form that is fill in order to pay tax to Govt authorities.
What is challan 280 of income tax act 1961?
Challan 280 of income tax act 1961 is uses for payment of income tax such as self assessment tax, advance tax , regular assessment tax,surtax and tax on distributed profit and income.
In brief challan 280 of income tax is a form that is fill to pay direct tax(income tax) to the Govt authorities. It is uses for payment tax either online or offline.
Categories of payment of challan 280
Self assessment tax, Advance tax , Regular assessment tax or tax on distributed profit or income, Accretion tax,Surtax, and Secondary adjustment tax is to be pay through challan 280 of income tax act.
1) Self Assessment Tax (300)
An individual after computing Taxable income , will calculate income tax liability by using slab rate applicable for them & subtracting deductions. This tax liability is known as Self Assessment Tax .
Further, the self assessment tax have to be pay through challan 280 of income tax by selecting (300) Self Assessment Tax option.
2) Advance Tax (100)
Advance tax is that which is to be pay before the end of the financial year. Advance tax is to be paid in installment as per the due dates . It has to be pay through challan 280 of income tax by selecting option Advance Tax (100) .
3) Regular assessment tax (400)
Regular assessment tax is occurs when income tax department finds that income reported by assessee in their return is less than actual income. And then they will recalculate amount of tax which is called “demand” .
In addition, the demand is raise by sending intimation u/s 143(1) of income tax . This demand will have to be pay within 30 days of receipt of such intimation.
In brief Demand is called as Regular assessment tax which is to be pay through challan 280 by selecting option Regular Tax Assessment (400).
4) Tax on Distributed Profits (106)
Domestic company that pays dividend is require to pay tax on profits distributed to its members. While paying tax on distributed profit , company shall select the option Tax on Distributed profit (106) under type of payment.
5) Tax on Distributed Income (107)
Mutual fund or any domestic business that distributes income to unitholders is require to pay tax on amount of income distributed. For paying tax on distributed income , company shall select the option Tax on Distributed Income (107) under type of payment.
6) Accretion Tax
Tax on accreted income of trust or institutions. Accreted income is FMV of Assets & Liabilities of trust or institutions as on specified date.
7) Surtax
Surtax is an additional tax on something that already taxed.
How to make payment of challan 280 of income tax act online ?
Here are the steps to make payment online through
A) NSDL Portal:
=> Go to NSDL e payment portal
=> Tap on challan 280 option and press proceed button
=> Tick radio button (0020) Corporation Tax ( In case of Companies)
=> Next, select mode of payment i.e. Net Banking, Debit Card
=> Write up tax payer detail like PAN & assessment year
=> after that fill the below mention details of taxpayer
Lastly, once payment is done taxpayer counterfoil will be generated , save this file and enter challan sr no and amount of payment while filing income tax return.
B) Income Tax E-filing Portal :
=> Visit to www.efiling website
=> Navigate on e-pay tax
=> Insert PAN , mobile number and verify using OTP
=> Now pick income tax category
=> Further, choose correct assessment year & type of payment
=> tax break up details
=> Click on pay now
=> Next, tick right on i agree terms and conditions & click on submit to bank
=> Lastly, you can view summary of payment and download receipt for future reference.
