- What is Challan 280?
- Steps Pay Income Tax Due
- Check the Receipt of Challan 280
- Declaration of Paid Taxes
- Advance Tax
- What are the situations when one has to pay income tax in advance?
- Calculation and payment of Advance Tax
- Determination and allow for the deductions
- How to calculate the amount of due tax on total income?
- Due Dates of Payment of Advance Tax for FY 2018-19
- Self Assessment Tax
- Outstanding Demand Payment
What is Challan 280?
Challan 280 is a way to pay multiple taxes like advance tax, self-assessment tax, regular assessment tax etc. In this article, we will discuss the steps to file online taxes using Challan 280.
Follow the steps below to Pay Income Tax Due:
Approach to the tax information network of the Income Tax Department. Now, under the Income Tax Challan 280 option, click on proceed.
In the second step, the applicant has to fill up his personal information.
- Make selection of (0021)
- Now, choose 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, and (400) Tax on Regular Assessment
If there is any tax, which is due for payment, while filing for the Income Tax return, then choose the self-assessment Tax Challan.
- Choose the payment mode, as you desire, and suitable for your convenience. Two modes of Income Tax Challan 280 online payment are mentioned over there; the first one is net banking, and the second one is debit card payment.
- Now, choose the right assessment year. An example of selecting the assessment year is for 1st April to 31ST March 2019; the assessment year is 19-20.
- Now fill the address details
- Enter the captcha, which is given in the space provided, and then click on “proceed.”
If you have mentioned all the details, now it is the time to double-check the information, so that, if there is any mistake, you can rectify that at the very same moment. Now, it is time to submit it to the bank. After that, you will be redirected to the bank’s payment page.
Check the Receipt of Challan 280:
When the payment gets done on the screen, you will find a tax receipt. In that payment receipt, you can check out all the payment details. On the right side of the challan receipt, one can see the code of BSR and the serial number of challan.
Declaration of Paid Taxes
When you end up with the payment of tax, it is the time to furnish the information in the Income Tax Return. To update the information, one has to go to the Taxes Paid Summary Page. Now, from the challan 280, choose the “self tax payment” tab and enter on the BSR code and the Challan Number. (BSR is of 7 digit numbers, and challan numbers are of 5 digits)
If you have dues in the annual tax, which is exceeding to Rs 10,000, this time, you need to pay the income tax in advance. For the salary based employees and employers, they used to take care of the income tax paid via the tax deductions.
1. What are the situations when one has to pay income tax in advance:
- When the person is salary-based, but he has a high income from the capital gains, interest, or rental income.
- Run a business
- You are a freelancer
2. Calculation and payment of Advance Tax
First, add income from all the resources you are earning. All the income includes salary income, interest income, and capital gains. It would help if you did the very same things when you are filing the income tax returns. If you are a freelancer, you need to calculate your annual income from all the clients. From the amount, you have to deduct the expenses. And according to the process, you can calculate the income tax for making the payment of it.
3. Determination and allow for the deductions
You need to deduct the deduction amount, on which you need to take the claim from the total income on the income tax return. The deductions you can deduct, which come under 80C, 80D, or 80E.
4. How to calculate the amount of due tax on total income?
Now, it is time to apply the latest income tax slabs rate on the taxable income to calculate the amount due to income tax. Reduce the amount of TDS, which requires to be deducted from the amount of income tax due. Make sure the payments you have made should be according to the income tax installments. One can make the payments via online portals as well.
The CA can help in checking out the advance tax liability, which can help in making the payment online. The CA will help in calculating the freelancing income, and make sure that the payments are fully optimized.
Due Dates of Payment of Advance Tax for FY 2018-19
|On or before 15th June||Up to 15% of advance tax|
|On or before 15th September||Up to 45% of advance tax less advance tax already paid|
|On or before 15th December||Up to 75% of advance tax less advance tax already paid|
|On or before 15th March||Up to 100% of advance tax less advance tax already paid|
Under the section of 234 B and 234 C, the result of the non-payment of advance tax is penal interest.
Self Assessment Tax
The income tax return cannot be submitted to the income tax department, till you have not paid the taxes. If you have not paid the due tax fully, till that you cannot submit the income tax return. You might have seen the tax payable at the time of filing, and this is known as self-assessment tax. This tax can be paid via the online portals to ensure the successful e-filing. Under the section of 234 B and 234 C, the taxpayer has to pay for the challan 280 online payment as well, along with the amount of due tax. It happens when you are making the payment after 31st March. With e-filing, at this time, the system will automatically tell you for the exact amount, which you have to pay. The CA can also confirm whether you have paid the right amount or not. He can verify the amount.
Outstanding Demand Payment
On-demand for income tax demand office, sometimes, the taxpayer has to make an income tax payment. If you are making something like so, you have to do so through an online portal, which is known as regular assessment.