Income Tax Challan for IDS: Income Declaration Scheme Challan No ITNS 286

Download the Income Tax Challan for IDS, Tax Payer i.e. Declarant can deposit Income Tax liability under Income Tax Declaration Scheme using Income Tax Form ITNS 286

Total Tax Liability under IDS is 45% of Income Declare under IDS (30% Tax + 15% Penalty) Those who have declare Income under IDS have to deposit tax and penalty in following ratio or Schedule for Payment of Tax & Penalty under IDS

  1. 25% of Tax, Surcharge & Penalty by 30th November 2016
  2. 25% of Tax, Surcharge & Penalty by 31st March 2017
  3. Remaining 50% of Tax, Surcharge & Penalty by 30th September 2017

For IDS separate challan has to be used in ITNS FORM 286 Download the Income Tax

Download (PDF)

Form 286

 

How to Pay or Deposit Outstanding Income Tax Demand Online or Offline through Challan 280

Income Tax Demand or Refund is issued once your assessment for that year is completed and Income tax officer i.e. Assessing Officer issues Income Tax Assessment order under section 143 (Summary assessment and Scrutiny assessment), Section 144 (Best judgment assessment), Section 147(Income escaping assessment). But Once Assessment is completed there can three outcome

1. No Demand or Refund for that Assessment Year

2. Refund Issued for that Assessment Year

3.  Demand Payable

So Assessee has two option or alternate in relation to that assessment year he accepts it or rejects is in case no acceptable then he can file Appeal Against that Assessment year with Income Tax Appeal with 30 days of receipt of Income tax Assessment order. In case accepts that Assessment order he has the option to pay outstanding  Income Tax Demand either online or offline through challan no 280. Basic Information required for Depositing Income Tax Demand or Normal Income Tax is PAN Number and Year for which you want to deposit income tax.

Process for Deposit Online Outstanding Income Tax Demand (Click on Link for Payment of Income Tax ) or Download the Challan No 280

Opening Page for tax Information System

Select Challan No 280 :Payment of Income Tax & Corporation Tax 

Challan No 280 Online Payment Screen

Tax Applicable: select code 21 for any Person other than Companies

PAN Number: 

Assessment for Year: Year for which Demand is Outstanding (Note Asst Year for Financial Year 2011-12 will be 2012-13, 2012-13 will be 2013-14, 2013-14 will be 2014-15 and So on)

Name of Person: As Given on PAN Card (it will be displayed once you fill all details and click on proceed link given at the end of form 280)

Address of the Assessee

Mobile No and Email id

Type Of Payment: Select 400(TAX ON REGULAR ASSESSMENT) for Income Tax Demand Deposit and 300 (SELF ASSESSMENT TAX) for Deposit of Tax Before filing Income tax return after year ending and 100 (ADVANCE TAX) for deposit of Income Tax Before year ending for FY 2015-16 (Assessment Year 2016-17) upto 31st March 2016.

Select Bank: Bank for which Net Banking Facility is activated

Once Proceed is Selected Confirmation Screen will be opened

CONFIRMATION PAGE FOR TAX PAYMENT

If All the Details Correct Select Submit to Bank Option.

In Case if Assessee wants to Deposit Income Tax Offline then he can download Challan No 280 and Fill the Above details

Download (PDF)

 

List of Authorised Banks for E-Payment of Income Tax: Banks for Online Tax Payment

List of Banks authorized by Income Tax Department for collecting E-Payment of Income Tax .i.e Online Collection of Advance Income tax, Tax Deducted Source (TDS) and Self Assessment Tax under Income Tax Act through NSDL. Total 30 Indian Banks have been empanelled for online Tax Collection  for Payment of TDS on Sale of Property (Form 26QB), Tax Deducted at Source / Tax Collected at Source (TDS/TCS) from corporates or non-corporates TDS/TCS (CHALLAN NO./ITNS 281), payment of Income tax & Corporation Tax (CHALLAN NO./ITNS 280), payment of Security Transaction Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax /Other direct taxes & Gift tax (CHALLAN NO./ITNS 282).

Following is the List of Banks for Online Tax Collection (Income Tax, Service Tax, Custom and Excise)

  1. Allahabad Bank
  2. Andhra Bank
  3. Axis Bank
  4. Bank of Baroda
  5. Bank of India
  6. Bank of Maharashtra
  7. Canara Bank
  8. Central Bank of India
  9. Corporation Bank
  10. Dena bank
  11. HDFC Bank
  12. ICICI Bank
  13. IDBI Bank Limited
  14. Indian Bank
  15. Indian Overseas Bank
  16. Jammu and Kashmir Bank
  17. Oriental Bank of Commerce
  18. Punjab National Bank
  19. State Bank of Bikaner & Jaipur
  20. State Bank of Hyderabad
  21. State Bank of India
  22. State Bank of Indore
  23. State Bank of Mysore
  24. State Bank of Patiala
  25. State Bank of Travancore
  26. Syndicate Bank
  27. UCO BANK
  28. Union Bank of India
  29. United Bank of India
  30. Vijaya Bank

Penalty for Non Deposit, Late Payment of Advance Income Tax

Find out what will be the penalty for late payment or not depositing advance income tax on time? Section 234A, 234B and 234C of the Income Tax deal with the penalty for not paying income tax liability on time.

Summary of Section 234A, 234B and 234C of the Income Tax Act,1961: Rate of interest for late payment of income tax .i.e filing of return after due date, advance tax and deferment of advance tax.

Filling of return after due date u/s 234A

Interest @ 1% per month or part of the month from the end of Due Date for filling of return till the date of furnishing of return

Defaults in payment of advance Tax u/s 234B

Interest @ 1% per month or part of the month the 1st day of April next following financial year to the date of determination of total income under section 143(1) and where a regular assessment, to the date of such regular assessment

Interest is payable if advance tax paid by the assessee during the previous year is less than 90% of the assessed tax.

Deferment in payment of advance Tax u/s 234C

Interest @ 1% per month or part of the month on the deficit amount as applicable.

Interest is payable if advance tax paid on due date is less than specified percentage ( see table of advance income tax)

Reference: Section 234A of the Income Tax Act, 1961

Interest for defaults in furnishing return of income

(1) Where the return of income for any assessment year under sub-section (1) or sub-section (4) of section 139, or in response to a notice under sub-section (1) of section 142, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of [one] per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,—

(a)  where the return is furnished after the due date, ending on the date of furnishing of the return; or

(b)  where no return has been furnished, ending on the date of completion of the assessment under section 144,

on the amount of the tax on the total income as determined under sub-section (1) of section 143, and where a regular assessment is made, on the amount of the tax on the total income determined under regular assessment, as reduced by the amount of,—

 (i)  advance tax, if any, paid;

(ii)  any tax deducted or collected at source;

(iii)  any relief of tax allowed under section 90 on account of tax paid in a country outside India;

(iv)  any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section;

(v)  any deduction, from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and

(vi)  any tax credit allowed to be set off in accordance with the provisions of section 115JAA or section 115JD

Explanation 1.—In this section, “due date” means the date specified in sub-section (1) of section 139 as applicable in the case of the assessee.

Explanation 2.—In this sub-section, “tax on the total income as determined under sub-section (1) of section 143” shall not include the additional income-tax, if any, payable under section 143.

Explanation 3.—Where, in relation to an assessment year, an assessment is made for the first time under section 147 or section 153A, the assessment so made shall be regarded as a regular assessment for the purposes of this section.

Explanation 4.

(2) The interest payable under sub-section (1) shall be reduced by the interest, if any, paid under section 140A towards the interest chargeable under this section.

(3) Where the return of income for any assessment year, required by a notice under section 148 or section 153A issued after the determination of income under sub-section (1) of section 143 or after the completion of an assessment under sub-section (3) of section 143 or section 144 or section 147, is furnished after the expiry of the time allowed under such notice, or is not furnished, the assessee shall be liable to pay simple interest at the rate of [one] per cent for every month or part of a month comprised in the period commencing on the day immediately following the expiry of the time allowed as aforesaid, and,—

(a)  where the return is furnished after the expiry of the time aforesaid, ending on the date of furnishing the return; or

(b)  where no return has been furnished, ending on the date of completion of the reassessment or recomputation under section 147 [or reassessment under section 153A],

on the amount by which the tax on the total income determined on the basis of such reassessment or recomputation exceeds the tax on the total income determined under sub-section (1) of section 143 or on the basis of the earlier assessment aforesaid.

Explanation.

(4) Where as a result of an order under section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the amount of tax on which interest was payable under sub-section (1) or sub-section (3) of this section has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and—

 (i)  in a case where the interest is increased, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly;

(ii)  in a case where the interest is reduced, the excess interest paid, if any, shall be refunded.

(5) The provisions of this section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years.

Reference: Section 234B of the Income Tax Act, 1961

 Interest for defaults in payment of advance tax

(1) Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of 1 per cent for every month or part of a month comprised in the period from the 1st day of April next following such financial year to the date of determination of total income under sub-section (1) of section 143 and where a regular assessment is made, to the date of such regular assessment, on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax.

Explanation 1.—In this section, “assessed tax” means the tax on the total income determined under sub-section (1) of section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of,—

  (i) any tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income;

 (ii) any relief of tax allowed under section 90 on account of tax paid in a country outside India;

(iii) any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section;

(iv) any deduction, from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and

 (v) any tax credit allowed to be set off in accordance with the provisions of section 115JAA or section 115JD

Explanation 2.—Where, in relation to an assessment year, an assessment is made for the first time under section 147 or section 153A], the assessment so made shall be regarded as a regular assessment for the purposes of this section.

Explanation 3.—In Explanation 1 and in sub-section (3) “tax on the total income determined under sub-section (1) of section 143” shall not include the additional income-tax, if any, payable under section 143.]

(2) Where, before the date of determination of total income under sub-section (1) of section 143 or] completion of a regular assessment, tax is paid by the assessee under section 140A or otherwise,—

  (i) interest shall be calculated in accordance with the foregoing provisions of this section up to the date on which the tax is so paid, and reduced by the interest, if any, paid under section 140A towards the interest chargeable under this section;

 (ii) thereafter, interest shall be calculated at the rate aforesaid on the amount by which the tax so paid together with the advance tax paid falls short of the assessed tax.

(3) Where, as a result of an order of reassessment or recomputation under section 147 or section 153A, the amount on which interest was payable under sub-section (1) is increased, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the day following the date of determination of total income under sub-section (1) of section 143 and where a regular assessment is made as is referred to in sub-section (1) following the date of such regular assessment]] and ending on the date of the reassessment or recomputation under section 147 or section 153A], on the amount by which the tax on the total income determined on the basis of the reassessment or recomputation exceeds the tax on the total income determined under sub-section (1) of section 143 or] on the basis of the regular assessment aforesaid.

Explanation.

(4) Where, as a result of an order under section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the amount on which interest was payable under sub-section (1) or sub-section (3) has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and—

  (i) in a case where the interest is increased, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly;

 (ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded.

(5) The provisions of this section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years.]

Reference: Section 234C of the Income Tax Act, 1961

Interest for deferment of advance tax

Where in any financial year,—

 (a) the company which is liable to pay advance tax under section 208 has failed to pay such tax or—

  (i)  the advance tax paid by the company on its current income on or before the 15th day of June is less than fifteen per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of September is less than forty-five per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than seventy-five per cent of the tax due on the returned income, then, the company shall be liable to pay simple interest at the rate of one per cent per month for a period of three months on the amount of the shortfall from fifteen per cent or forty-five per cent or seventy-five per cent, as the case may be, of the tax due on the returned income;

 (ii)  the advance tax paid by the company on its current income on or before the 15th day of March is less than the tax due on the returned income, then, the company shall be liable to pay simple interest at the rate of one per cent on the amount of the shortfall from the tax due on the returned income:

Provided that if the advance tax paid by the company on its current income on or before the 15th day of June or the 15th day of September, is not less than twelve per cent or, as the case may be, thirty-six per cent of the tax due on the returned income, then, it shall not be liable to pay any interest on the amount of the shortfall on those dates;

 (b) the assessee, other than a company, who is liable to pay advance tax under section 208 has failed to pay such tax or,—

  (i)  the advance tax paid by the assessee on his current income on or before the 15th day of September is less than thirty per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than sixty per cent of the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent per month for a period of three months on the amount of the shortfall from thirty per cent or, as the case may be, sixty per cent of the tax due on the returned income;

 (ii)  the advance tax paid by the assessee on his current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent on the amount of the shortfall from the tax due on the returned income :

Provided that nothing contained in this sub-section shall apply to any shortfall in the payment of the tax due on the returned income where such shortfall is on account of under-estimate or failure to estimate—

 (a) the amount of capital gains; or

 (b) income of the nature referred to in sub-clause (ix) of clause (24) of section 2,

and the assessee has paid the whole of the amount of tax payable in respect of income referred to in clause (a) or clause (b), as the case may be, had such income been a part of the total income, as part of the remaining instalments of advance tax which are due or where no such instalments are due], by the 31st day of March of the financial year:]

Provided further that nothing contained in this sub-section shall apply to any shortfall in the payment of the tax due on the returned income where such shortfall is on account of increase in the rate of surcharge under section 2 of the Finance Act, 2000 (10 of 2000), as amended by the Taxation Laws (Amendment) Act, 2000 (1 of 2001), and the assessee has paid the amount of shortfall, on or before the 15th day of March, 2001 in respect of the instalment of advance tax due on the 15th day of June, 2000, the 15th day of September, 2000 and the 15th day of December, 2000 :

Provided also that nothing contained in this sub-section shall apply to any shortfall in the payment of the tax due on the returned income where such shortfall is on account of increase in the rate of surcharge under section 2 of the Finance Act, 2000 (10 of 2000) as amended by the Taxation Laws (Amendment) Act, 2001 (4 of 2001) and the assessee has paid the amount of shortfall on or before the 15th day of March, 2001 in respect of the instalment of advance tax due on the 15th day of June, 2000, the 15th day of September, 2000 and 15th day of December, 2000.

Explanation.—In this section, “tax due on the returned income” means the tax chargeable on the total income declared in the return of income furnished by the assessee for the assessment year commencing on the 1st day of April immediately following the financial year in which the advance tax is paid or payable, as reduced by the amount of,—

  (i) any tax deductible or collectible at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income;

 (ii) any relief of tax allowed under section 90 on account of tax paid in a country outside India;

(iii) any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section;

(iv) any deduction, from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and

 (v) any tax credit allowed to be set off in accordance with the provisions of section 115JAA or section 115JD

(2) The provisions of this section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years.

Liability to Pay Advance Tax under Income Tax Act

Who is liable to Pay Advance Income Tax under Income Tax Act? As per Section 208 of the income tax act, its obligatory to pay advance tax in every case when the tax on current income is greater than Rs.10,000/- then assessee is liable to pay advance tax. Here Tax liability is considered as criteria for eligibility for payment of advance tax. In another way we can say that when net taxable income is greater than Rs 280,000/- for Assessment year 2012-13 and Rs 300,000/- for Assessment year 2013-14. Above limits are for the resident individual and for women assessee and senior citizen limits and calculation will be based on their exemption limits. In case of salaried employee advance tax liability is take care off by employer as every employer has to deduct TDS from salary in case if salary income is taxable under income tax act .i.e Total Taxable Income is higher than exemption limit given Income Tax Slab.

Reference: Liability for payment of advance tax.

Section 207. (1) Tax shall be payable in advance during any financial year, in accordance with the provisions of sections 208 to 219 (both inclusive), in respect of the total income of the assessee which would be chargeable to tax for the assessment year immediately following that financial year, such income being hereafter in this Chapter referred to as “current income”.

(2) The provisions of sub-section (1) shall not apply to an individual resident in India, who—

(a)  does not have any income chargeable under the head “Profits and gains of business or profession”; and

(b)  is of the age of sixty years or more at any time during the previous year.

Credit for advance tax

Section 219. Any sum, other than a penalty or interest, paid by or recovered from an assessee as advance tax in pursuance of this Chapter shall be treated as a payment of tax in respect of the income of the period which would be the previous year for an assessment for the assessment year next following the financial year in which it was payable, and credit therefor shall be given to the assessee in the regular assessment.

Due Dates of Payment of Advance Tax

Due Dates of Payment of Advance Income Tax is 15th June, 15th September, 15th December and 15th March for companies and 15th September, 15th December and 15th March for individual, HUF and partnership firm .i.e All Non corporate assessee.

Liability of advanced tax: Section 208 of the income tax act makes it obligatory to pay advance tax in every case, when the tax on current income is greater than 10000, then assessee is liable to pay advance tax. 

Due date of payment

Advance tax amount paid till date

Non-corporate assessee

Corporate assessee

15th June of previous year

NIL

15% of assessed tax
15th September of previous year30% of assessed tax45% of assessed tax
15th December of previous year60% of assessed tax75% of assessed tax
15th March of previous year100% of assessed tax100% of assessed tax

Assessed tax means: 

Tax on Income calculated-xxxxx

Less: TDS/TCS                -xxxx

Instalments of advance tax and due dates

211. (1) Advance tax on the current income calculated in the manner laid down in section 209 shall be payable by—

(a)  all the companies, who are liable to pay the same, in four instalments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified in Table I below :

TABLE I

Due date of instalmentAmount payable
On or before the 15th JuneNot less than fifteen per cent of such advance tax.
On or before the 15th SeptemberNot less than forty-five per cent of such advance tax, as reduced by the amount, if any, paid in the earlier instalment.
On or before the 15th DecemberNot less than seventy-five per cent of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments.
On or before the 15th MarchThe whole amount of such advance tax as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments;

(b) all the assessees (other than companies), who are liable to pay the same, in three instalments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified in Table II below :

TABLE II

Due date of instalmentAmount payable
On or before the 15th SeptemberNot less than thirty per cent of such advance tax.
On or before the 15th DecemberNot less than sixty per cent of such advance tax, as reduced by the amount, if any, paid in the earlier instalment.
On or before the 15th MarchThe whole amount of such advance tax as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments :

Provided that any amount paid by way of advance tax on or before the 31st day of March shall also be treated as advance tax paid during the financial year ending on that day for all the purposes of this Act.]

(2) If the notice of demand issued under section 156 in pursuance of an order of the Assessing Officer under sub-section (3) or sub-section (4) of section 210 is served after any of the due dates specified in sub-section (1), the appropriate part or, as the case may be, the whole of the amount of the advance tax specified in such notice shall be payable on or before each of such of those dates as fall after the date of service of the notice of demand.

For Payment / Depsoit of Adnavce Tax Download INCOME TAX CHALLAN NO 280: For Payment of Income Tax

No Payment of Income Tax Demand of Less than Rs 100/-

Person is not required to Pay Income Tax Demand for any amount less than Rs.100/- and any income tax department notice for demand of less than Rs 100/- will not considered as Demand Notice and it will be treated as communication from income tax department. Any Income Tax Demand of Less than Rs 100/- will be adjusted against future refund. This was issued by Department of Revenue, Ministry of Finance on 5th Jan 2012. Also The Income Tax Department has been instructed to amend such entries, if found incorrect, when approached by taxpayers. This would correct the database if a taxpayer has proof of payment etc.

It has been reported in some sections of the press that the Central Processing Centre ,
Bangalore is sending notices for payment of taxes which are as small as Rs. 1/- , 4/- , 6/-,
causing unnecessary hardship to assesses . It has been stated that when the refunds for
amounts less than Rs. 100/- are not issued by the Income Tax Department, then the demand for less than Rs. 100/- should also not be collected .

Clarification in this regard is as follows: Arrear Demand Communication 
The Income Tax Department has created a central repository of all demands for better demand management as required by Standing Committee of Parliament and C&AG. To achieve this, all officers were asked to collate demand lying at various places viz. IRLA, TMS and manual registers and upload onto CPC portal. This was also part of the annual action plan. Consequently AOs have uploaded the same. During a meeting with Bangalore Chartered Accountants association, it was suggested that taxpayers should also be informed about the same so as to enable them to take necessary action if the outstanding demands were incorrect. 
This measure was aimed at providing greater transparency. Therefore, a communication has been sent to taxpayers informing them about existing arrears. It may be clarified that this communication is not a demand notice. This measure is, in fact, an assessee -friendly exercise. The Department has also written to all chief commissioners to amend such entries, if found incorrect, when approached by taxpayers. This would correct the database if a taxpayer has proof of payment etc. As per extant procedure, demand of less than Rs 100 is not enforced but is liable for adjustment against future refunds. 
Department of Revenue, Ministry of Finance
New Delhi: Pausa 15, 1933; January 05, 2012