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Challan 280 -How to Pay  Income Tax?

Challan 280 -How to Pay  Income Tax?

The government introduced the Challan 280 Online for taxpayers to pay their self-assessment Income Tax online. It helps pay the regular assessment tax, advance tax, and other additional charges. Since the entire process occurs online, it makes the payment method of taxes easier and more convenient. Here’s a look at the income tax Challan 280 online payment and why it is useful.

As the name states, the persons who opt for this method of paying their taxes immediately begin their books to be assessed by the tax authorities. They assess their income by themselves and pay off their taxes. This is a great way to manage your cash flow, which helps in better money management, planning and structuring.

Income Tax Challan 280 Online

Income Tax Challan 280 Online was introduced to distinguish advance taxpayers from regular taxpayers. Since advance tax payments are based on estimates, the required information and documentation differ from that needed by regular taxpayers, who pay based on precise calculations.

The Income Tax Challan 280 Online provides an efficient way to pay advance tax online. Previously, paying these taxes required visiting designated bank branches and filling out multiple Challans. Now, the government has enabled online payments, simplifying the process. The only requirement for online tax payment is having a net banking-enabled account with any designated bank.

Stepts to Make Income Tax Challan 280 Online Payment?

  • Visit the official website of the IT department. Navigate to the Tax Information section and select the Challan 280 option. Then, click on Proceed.
  • To proceed, fill in the personal and contact details required within the designated tab. For individuals, select the Income Tax (Individual) option, which corresponds to Option 0021, and then choose the type of tax you wish to pay. The options are:
  • 100 for Advance Tax
  • 102 for Surtax
  • 106 for Distributed Profit Tax
  • 107 for Distributed Income Tax
  • 300 for Self  Assessment Tax
  • 400 for Regular Assessment Tax
  • After selecting the tax type, choose your preferred payment mode, which can be either Debit Card or Internet Banking.
  • Then, choose the relevant financial year for assessment. Enter your address and complete the Captcha.
  • Click on Proceed to move forward.

Review the details carefully, then proceed to the bank’s payment portal and complete the transaction. Ensure all information is correct before confirming the payment.

To obtain your tax receipt, finish the payment through the specified portal. Ensure you check the payment details on the receipt carefully. Save a copy or take a screenshot of the receipt, as it includes your challan number.

Types Of Challan 280

Challan 280: Individuals utilize this challan to fulfill obligations such as income tax, advance tax, and self-assessment tax payments.

Challan 281: This is designated for businesses to remit Tax Deducted at Source (TDS) and Tax Collected at Source (TCS).

Challan 282 and Challan 283: These challans serve the purpose of remitting payments for specific taxes apart from the ones mentioned earlier.

Advance Income Tax Payment

When your yearly tax obligation surpasses Rs 10,000, you must make advance income tax payments. For salaried individuals, employers usually manage these payments through TDS (Tax Deducted at Source) deductions.

Circumstances Requiring Advance Tax Payments

If you earn substantial income from sources such as interest, capital gains, or rental income in addition to your salary, or if you are a freelancer or business owner, it is your responsibility to pay income tax.

How to Calculate and Pay Advance Tax?

To calculate and fulfill your advance tax obligations, it’s crucial to account for all income streams, such as salary, interest, capital gains, and any other earnings, akin to how you would when completing your tax return. If you’re a freelancer, estimating your yearly income from each client and deducting relevant expenses, like workplace rent, internet and mobile bills, computer depreciation, and travel costs, is essential. For deeper insights into freelancer tax matters, exploring specialized resources on the subject is recommended.

How to Determine and Allow Deductions

To calculate your taxable income for your tax filing, it’s crucial to identify and include eligible deductions. These deductions are categorized under different sections like 80C, 80D, 80E, or other relevant provisions. It’s essential to minimize your taxable income by claiming deductions within the permissible sections.

Advance Tax Online Payment

For those whose annual tax liabilities surpass INR 10,000, it’s imperative to make advance tax payments. Typically, salaried individuals benefit from timely tax deductions by their employers through TDS.

Advance tax is particularly crucial for:

  • Salaried individuals with significant earnings from capital gains, rents, or interest.
  • Freelancers.
  • Business owners and managers.

To compute advance tax, taxpayers should amalgamate income from various sources:

  • Salary
  • Interest
  • Capital gains
  • Freelance earnings (after expense deductions)
  • Rental income

After accounting for deductions under Sections 80C, 80D, 80CCC, 80CCD, and 80E, determine your taxable income. Then, ascertain your applicable income tax slab and calculate the tax due, considering any TDS already deducted.

Here’s a breakdown of advance tax schedule:

June 15th: Pay up to 15% of the total tax due.

September 15th: Pay up to 45%.

December 15th: Pay up to 75%.

March 15th: Complete payment, covering up to 100% of the tax liability.


Navigating taxation can be quite intricate and counterintuitive due to its formulation based on a macroeconomic perspective inaccessible to the common citizen. Seeking advice from a tax expert not only ensures compliance with tax policies and regulations but also optimizes taxable income to minimize tax liability. For assistance with Income Tax Challan 280 online payment and other formalities or to discuss tax queries and advance tax processing, reach out to our team of knowledgeable tax professionals. They can tailor guidance to your specific needs, ensuring you receive optimal support.

If you have any doubt regarding this, then you can send your doubts on company suggestion and our team of experts will guide you.

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