How to fill service tax challan
New simplified challans under On Line Tax Accounting System
Frequently asked questions and answers
Q 1.What are the new challans for the payment of Direct Taxes and from what date are they operative?
Ans. The 3 new single copy Challans which are being introduced from Ist June 2004 are as under.
A common single copy Challan No. ITNS 280 for payment of Income tax, Corporation tax and Wealth tax.
A common single copy Challan No. ITNS 281 for depositing Tax Deducted at Source from corporates or non-corporates.
A common single copy Challan No. ITNS 282 for payment of Gift-tax, Estate Duty, Expenditure Tax and Other miscellaneous direct taxes.
Each challan has a taxpayer counterfoil at the bottom which will be returned to you by the bank after duly stamping it with a Challan Identification Number (CIN).
Q 2. Where will the new Challans be available?
Ans. The Challans are available at the Income Tax Departments website incometaxindia.gov.in. Challans are also available at the local Income tax offices and with private vendors.
Q 3.How does the new system benefit me, a common tax payer?
Ans. The new system is of great benefit to the common tax payer. Now a single copy simplified Challan has to be filled up replacing the complicated four copy Challan. This Challan can be filled up much faster. Secondly, it will be possible to obtain an acknowledgement for taxes paid at your own bank branch immediately rather than after 3 days at present. Thus, one visit to the bank will suffice instead of two visits at present if you pay taxes at your own bank branch. Further, once you have the acknowledgement counterfoil with the rubber stamp containing the Challan Identification Number (CIN) and you have filled in your PAN correctly, you are assured that the payment will be properly accounted for in your name. Lastly, you will no longer need to attach copies/ acknowledgment of challan with your return. Simply mention the CIN details in the income-tax return. This will also assist you in e-filing your return.
Q 4. Can I pay taxes using the old Challan after Ist June 2004?
Q 5. What would be the new procedure for payment of direct taxes at banks?
Ans. If you are paying taxes in cash (at any designated bank branch) or by cheque at the bank branch where you have a bank account, the bank will accept your cash/cheque and will immediately stamp the counterfoil of the Challan with a rubber stamp containing the Challan Identification Number as mentioned at answer number 6. If however, you are paying taxes by cheque/ draft at a bank branch other than where you have a bank account, the collecting bank branch will accept your cheque/draft and issue you a paper token in acknowledgement. When you present this token after encashment of the cheque, the bank will hand over the acknowledgement counterfoil duly stamped with the Challan Identification Number (CIN) as explained in answer to question number 6.
Q 6. What is Challan Identification Number (CIN) and what is its relevance to me?
Ans. CIN is the abbreviation for Challan Identification Number. This has three parts - 7 digit BSR code of the bank branch where tax is deposited. - Date of Deposit (DD/MM/YY) of tax - Serial Number of Challan. The CIN would be stamped on your acknowledgement receipt to uniquely identify your tax payment. The CIN has to be quoted in your return of income as a proof of payment. CIN is also to be quoted in any further enquiry. Therefore, you must ensure that CIN (comprising the above 3 parts) is stamped on the Challan by the bank. If not, immediately contact the bank manager and insist on CIN. The Reserve Bank of India has already passed an order dated 1st April 2004 making it compulsory for all tax collecting branches of banks to use a rubber stamp acknowledgement that carries CIN. A separate CIN is given for each challan deposited. If the Bank Manager is unable to resolve the issue, you should address your grievance to the Bank.s Regional Manager and the Regional Office of Reserve Bank of India for redressal.
Q 7. How will the acknowledgement stamp bearing the CIN look like ?
Ans. The Acknowledgement stamp of the bank will contain the following information :
Bank Branch Name :
BSR (7 digit) :
Deposit Date (DDMMYY) :
Q.8. Do I have to attach the acknowledgement counterfoil with my return?
Ans. No, it will be considered sufficient proof if you quote your Challan Identification Number (CIN) (as mentioned in your counter-foil) in your return. The Income-tax return forms are being suitably modified.
Q.9. What should I do if I have misplaced my acknowledgement counterfoil?
Ans. Kindly approach the bank where you have deposited the tax and request them to issue you a certificate which contains your payment particulars including CIN as explained in reply to question No. 6.
Q.10. What would happen if I loose the paper token issued by the bank?
Ans. Each bank follows it's own procedure so you may contact the branch manager of the bank.
Q.11. I have not been allotted a Permanent Account Number (PAN) but wish to pay taxes. Will the bank refuse to take my payment?
Ans. No. But it is in your interest to deposit the Challan with PAN to avoid inconvenience later. However, you may deposit taxes but ensure that you write your full name (without initials) and your full address in the relevant place in the challan.
Q.12. We have applied for a Tax Deduction Account Number (TAN) but have not received one yet. Should we fill up Permanent Account Number in Challan No. ITNS 281?
Ans. No. Permanent Account Number (PAN) is distinct and altogether different from your Tax Deduction Account Number (TAN). Try to obtain your TAN from the assessing officer dealing with TDS. If it is not possible to do so, leave the column blank but write your full name and
address in the Challan form.
Q.13. I am an individual and have to pay self assessment tax (income tax) before filing my return of income. Which Challan should I use?
Ans. You should use Challan ITNS No. 280 and tick the box [a] 0021 Income-tax. As you are paying self assessment tax, you should further tick the [a] Self Assessment Tax (300) under Type of Payment
Q.14. We are a corporate and have to pay Advance Tax for Assessment Year 2005-06. Which Challan should we use?
Ans. You should use Challan ITNS 280 and tick the tax [a] 0020 Corporation Tax. As you are paying Advance tax for the Assessment year 2005-06, write this in the space provided in the Challan and then tick the box [a] Advance Tax (100) under Type of Payment.
Q.15. We are a partnership firm and have to deposit tax deducted from a corporate. Which Challan should we use?
Ans. You should use Challan ITNS No. 281 and tick tax [a] '(0020) companies' as the status of the deductee is a company.
Q.16. We are a company XYZ Ltd and have deducted tax source for both companies and non companies on "Interest other than interest on securities". Which Challan should we use to deposit the tax?
Ans. You will have to use two separate challans. You should use Challan No. 281 and tick box [a] (0020) in respect of tax deducted at source from companies. You should use a separate Challan No. 281 and tick box [a] (0021) in respect of tax deducted at source from non-companies. The code 94A will have to be filled up under 'Nature of Payment'. These codes are mentioned behind the challan. As in both cases, tax deposited relates to TDS on 'Interest other than interest on securities', you should fill up code No. 94A in the 'Nature of Payment' field in the challan. The codes for 'Nature of Payment' are mentioned behind the challan.
Q.17. We have to deposit taxes on account of TDS on salaries of our employees as well as TDS on interest paid to fixed deposit holders who are individuals and other corporates. Can we combine the three payments in one Challan?
Ans. No, you will have to use three separate challans. The TDS on salaries of employees will have to be deposited with Challan No. ITNS 281 by ticking the box [a] '0021 non-companies' as the TDS pertains to individuals (non-companies). Thereafter the code 92B will have to be filled up under 'Nature of Payment'. The codes for 'Nature of Payment' are mentioned behind the challan. In respect of interest paid to fixed deposit holders, you will have to first of all segregate the interest payable/paid to companies (Corporates) and non companies. For the portion of TDS pertaining to companies, fill up Challan No ITNS 281 and tick box [a] '0020 companies' as the TDS pertains to companies. For the portion of TDS relating to non companies, fill up a separate Challan No. ITNS No. 281 and tick box [a] '0021 non companies' as TDS pertains to non companies. Fill up the 'Nature of Payment' as per codes given behind Challan No. ITNS 281. In this case also the code will be 94A. Please ensure that the bank branch gives you separate acknowledgements with separate Challan Identification Number (CIN) for the 3 Challans deposited by you.
Q.18. If I have to deposit fees for filing on appeal, what should I do?
Ans. In case you have to deposit appellate fees, copying charges or other miscellaneous payments, tick box [a] 0020. thereafter tick box '[a] 400 Regular Tax' under 'Type of Payment' and fill up the amount to be paid in 'Others' column under 'Details of Payment'. In case of non - corporates such as individuals, partnership firms, societies etc. the same procedure is to be followed except that the box [a] 0021 should be ticked at the top of the challan instead of 0020.
Q.19. After depositing my tax at the bank, I have noticed that I have mentioned the Assessment year/minor head incorrectly in my challan Who do I approach to have this corrected ?
Ans. You have to approach your Assessing Officer with an application containing the details of your PAN and the CIN (as explained earlier in answer number 6) and request him to carry out the necessary corrections.
Q.20. After depositing the tax at the bank, I have noticed that I have mentioned wrong PAN, or I have received my PAN after making the challan payment? How do I get this incorporated in my challan information?
Ans. You have to approach your Assessing Officer with an application containing the details of correct PAN and CIN (as explained earlier in answer to question number 6) and request him to make the necessary correction.
Q.21. Is it possible for us to deposit many challans with a single cheque ?
Ans. No, you have to deposit separate cheques for each challan.
Q.22. Which are the banks where direct taxes can be paid?
Ans. 31 banks and the Reserve Bank of India (RBI) at 8 centres are collecting taxes through their authorised branches. To check the nearest authorised bank branch, you may contact the bank manager of your bank who will be able to guide you. This information can also be obtained from this website (incometaxindia.gov.in.)
Q.23. Can I make tax payment using the internet?
Ans. It shall be possible to do so in the near future. Watch out for the announcement on this website and on the websites of different banks
Q.24. I have to deposit self assessment tax after 01.06.04 before filing my return for A.Y. 2004-2005 Will I have to attach the tax payers counter foil of the single copy challans with my return during the current financial year?
Ans. As self assessment tax paid between 1.6.04.and 31.3.05 will represent an overlap period between the old and new system, you should enclose a photocopy of your taxpayer counter foil with your return for A.Y. 2004-05. Please retain the original counterfoil for your reference.Source: tin.tin.nsdl.com