Challan 280 can no longer be used to make income tax payments online. However, you can find the step-by-step process to pay your tax the new way, via the official e-pay tax portal.

Challan 280 is an instrument for taxpayers in India, facilitating the online payment of income tax. It is a key component of the income tax payment system, used for various tax payments, including advance tax, self-assessment tax, tax on regular assessment, surtax, tax on distributed profits, or distributed income.

Can I Make an Online Payment with Challan 280?

The income tax payment process has been shifted from OLTAS to the ‘e-Pay Tax’ facility on the e-filing portal. As a result, Challan 280 can no longer be used to make income tax payments online. 

However, you can pay your income tax on the official e-pay tax portal through the following steps-

Step 1: Go to the Income Tax Portal.

Step 2: Click on  ‘e-Pay Tax’ under the ‘Quick Links’ section on the left side of the homepage.

Step 3: Enter your PAN and confirm it.

Step 4: Provide your mobile number and click ‘Continue’.

Step 5: Enter the 6-digit OTP received on your mobile number and click on ‘Continue’.

Step 6: Select the ‘Income Tax’ box and click ‘Proceed’.

Step 7: Select ‘2023-24’ from the ‘Assessment Year’ dropdown.

Step 8: Choose ‘Self-Assessment Tax (300)’ under ‘Type of Payment’ and click ‘Continue’.

Step 9: Enter the payment amounts accurately under the relevant categories.

Step 10: Select the payment method and bank, then click ‘Continue’.

Step 11: You can pay using internet banking, debit card, credit card, RTGS/NEFT, UPI, or pay at the bank counter.

Step 12: Preview the challan details and double-check the payment information.

Step 13: Click on ‘Pay Now’ to make the payment or ‘Edit’ to modify the details.

Step 14: Agree to the Terms and Conditions by ticking the checkbox.

Step 15: Click ‘Submit To Bank’ to proceed with the payment.

Step 16: You will receive a confirmation once your tax payment is successfully submitted.

Step 17: Download the challan as you will need the BSR code and Challan number for the return filing process.

Who is Eligible for e-Tax Payment?

The following individuals must pay taxes online-

  • All corporate assesses
  • All non-company assesses who fall under the provisions of section 44AB of the Income Tax Act, 1961.

Which Banks are Authorized for Income Tax Payment?

The following banks are authorized to make the online income tax payment with effect from 28 April 2023-

Documents Required for Paying Income Tax Online

What are the Benefits of Making e-Tax Payments?

  • Convenience: E-tax payments can be made conveniently from anywhere and at any time, eliminating the need to visit physical tax offices or stand in long queues.
  • Time-saving: E-tax payments save time as they can be completed quickly online, avoiding the need for manual paperwork and manual processing.
  • Accuracy: E-tax payments ensure accuracy in calculating and submitting tax amounts, reducing the chances of errors that can occur in manual calculations.
  • Instant receipt: Upon successful e-tax payment, an instant receipt is generated, providing immediate proof of payment.
  • Record keeping: E-tax payments create digital records that are easily accessible and can be referred to in the future, simplifying record keeping and making it easier to track and manage tax payments.
  • Automated updates: E-tax payments update tax department records automatically, eliminating the need for additional steps to ensure the updating of records.
  • Faster processing: E-tax payments are processed faster compared to traditional methods, resulting in quicker updates and acknowledgments from the tax department.
  • Transparency: E-tax payments offer transparency, as taxpayers can track and verify the status of their tax payments online, ensuring peace of mind and reducing the chances of any discrepancies.
  • Cost-effective: E-tax payments eliminate the need for physical payment instruments, such as cheques or demand drafts, saving costs associated with printing, postage, and manual handling.
  • Environment friendly: E-tax payments contribute to environmental sustainability by reducing paper usage and the carbon footprint associated with physical transactions.