Advance Tax, Challan 281, Challan 280 and online payment

Collection Advance tax is a form of income tax. If the tax liability exceeds Rs.10000 in a year then advance tax has to be paid. You may call it ‘pay as you earn’ tax.

Advance tax dates

• You need to pay the advance tax in the same financial year when you receive the income. Hence, the calculation of the advance tax is done in the cycle of every financial year.
• You have to fully pay on or before 15th March. However, an individual may pay in parts throughout the year as well.

Advance tax challan

• The banks authorized by the Income Tax department collect advance tax through payment challans. However, you can submit the advance tax through the online portal as well.
• You can submit the advance tax using Challan 280.

Challan 281

• The Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) is collected by issuing Challan 281.
• You can submit income tax Challan 281 through the online or offline process.
• In case of offline submission, you have to make the payment via cash or cheque.

Challan 280

• The collection of Income tax is done by issuing Challan 280. It includes the Advance tax also.
• You can submit income tax along with Challan 280 through the online as well as an offline process.

Income tax challan 280 online payment

• For online payment of income tax, visit the official website of the Income Tax department.
• Go to the e-payment section
• Select Challan 280
• Fill up personal details such as PAN or TAN number, address of the taxpayer, etc.
• You have to select the accounting head or type of income tax.
• Make the payment through net banking or using your debit card.

Income tax challan 281 online payment

The process for submitting income tax along with Challan 281 is similar to that of Challan 280.

• For online payment of income tax, visit the official website of the Income Tax department.
• Go to the e-payment section
• Select Challan 281
• Select Deductee
• Fill up personal details such as PAN or TAN number, address of the taxpayer, etc.
• You have to select the accounting head or type of income tax (TDS /TCS).
• After that, you have to make the payment through net banking or using your debit card.