Income Tax Challan 281: Meaning and deposit procedures

Challan 281 is a form used by the Indian Income Tax Department to deposit tax or other amounts payable under the Income Tax Act 1961. It is used to deposit various types of taxes, including advance tax, self-assessment tax, and regular tax.

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The Challan 281 form can be used to make a tax payment online or at a bank. It is crucial to ensure that the correct Challan form is used for the type of tax being paid, as different forms are used for different kinds of taxes.

See also: Online tax payment: How to use Challan 280 for e-tax payment?

Income Tax Challan 281: An overview

Challan 281 is a payment challan used in India to pay taxes or other fees to the government. Challan 281 is specifically used for paying taxes under the Income Tax Act. It is a standard form that individuals, businesses, and organisations use to pay taxes owed to the government. The form is available online and can be downloaded and filled out by the taxpayer. It can be submitted at a bank or other designated payment location along with the payment to complete the tax payment process.

If you have received a Challan 281, you must pay a tax or fee to the Income Tax Department. You can pay this tax or fee using the methods specified on the Challan 281 form.

Income Tax Challan 281 and OLTAS

The Online Tax Accounting System (OLTAS) is an electronic system for collecting taxes in India. It is used by the Central Board of Direct Taxes (CBDT) to process tax payments made by individuals and businesses. Challan 281 is a form used for making tax payments through OLTAS.

The form is used to specify the type and amount of tax being paid and the bank through which the payment is being made. When taxpayers want to make a tax payment through OLTAS, they must fill out Challan 281 and submit it to the designated bank. The bank will process the payment and send the confirmation to the CBDT through OLTAS.

Income Tax Challan 281: Purpose

Challan 281 is a form used by the Indian Income Tax Department to collect taxes, fines, and fees. The income tax challenge 281 has the following purposes:

Payment of income tax, including advance tax, self-assessment tax, and regular assessment tax
Payment of taxes on professional income, such as legal or consulting fees
Payment of taxes on rent received from property
Payment of taxes on capital gains from the sale of property or securities
Payment of taxes on dividend income
Payment of taxes on lottery winnings or other types of gambling income
Payment of fines or penalties for violations of tax laws or failure to file tax returns

If you have received a Challan 281, you must pay taxes or fees to the Income Tax Department. You can pay the amount due by visiting a bank or by using the online payment portal provided by the Income Tax Department.

Income Tax Challan 281: Deposit procedures

TDS Challan 281 is a form used by taxpayers to make tax payments to the government. To use TDS Challan 281, you will need to follow these steps:

Visit the official website of the Income Tax Department of India https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Click on the “Pay Taxes” option and select “Challan No./ITNS 281” from the dropdown menu.
Fill in the required details in the form, including your PAN (Permanent Account Number) and the tax amount you wish to pay.
Select “Type of Payment” and “Major Head” from the dropdown menus.
Review the information you have entered and ensure that it is correct.
Click on the “Proceed” button to generate the Challan.
Print the Challan and take it to an authorised bank to make the payment.

Note: You will need to pay a processing fee in addition to the tax amount when you make the payment.

FAQs

How do I fill out Income Tax Challan 281?

To fill out Income Tax Challan 281, you must provide details such as your name, PAN, address, and tax liability. You will also need to provide details about the mode of payment, such as cash, check, or demand draft.

Where can I get Income Tax Challan 281?

Income Tax Challan 281 can be obtained from the Income Tax Department's website or authorised banks. You can also get a copy from a tax practitioner or chartered accountant.

How do I make a payment using Income Tax Challan 281?

You can make a payment using Income Tax Challan 281 by visiting a designated bank and submitting the completed form along with the payment. You can also pay online through the Income Tax Department's e-filing portal or the National Securities Depository Limited (NSDL) website.

Can I pay using Income Tax Challan 281 after the due date?

Yes, you can pay using Income Tax Challan 281 after the due date, but you will be liable to pay interest on the outstanding amount. The rate of interest will depend on the duration of the delay.

How do I know if my tax payment using Challan 281 has been successful?

After you make a tax payment using Challan 281, you will receive a confirmation message on your screen. You can also check your payment status by visiting the e-filing portal of the Income Tax Department and accessing your account.