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Challan 280 : Self Assessment Tax and Advanced Tax Payment

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Hiral Vakil

Challan No. ITNS 280
Income Tax
Tax Payments
Last updated on April 14th, 2021

Challan 280 is used for the payment of Non-TDS/TCS such as Self Assessment Tax, Advanced Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company, and Tax on Distributed income. Hence, the taxpayer can pay their taxes online using this challan on the TIN-NSDL portal. Moreover, taxpayers need to make the payment through this challan before their ITR.

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Self Assessment Tax Payment

Any pending tax liability at the end of the financial year after calculating total taxable income and subtracting deductions & taxes paid is Self-Assessment tax. A taxpayer must pay self-assessment tax before he/she can file an ITR in India. While making the payment of self-assessment tax, the taxpayer should choose the option “(300) Self-Assessment Tax” under the Type of Payment option on the TIN-NSDL.

Challan 280 - Self Assessment Tax Payment Option

Advanced Tax Payment

Advance Tax is a part payment of your tax liability before the end of the financial year. It is also called pay as you earn scheme where the income tax should be paid in the year in which the income is received. While making the payment of advanced tax, the taxpayer should choose the option “(100) Advanced Tax” under the Type of Payment option on the TIN-NSDL.

Challan 280 - Advanced Tax Payment Option

Steps to Complete the Online Payment of Income Tax Using Challan 280

Time needed: 5 minutes.

  1. Go to the TIN NSDL e-payment Portal.

    Access the TIN-NSDL e-payment Portal by logging in with your credentials.

  2. Select Challan 280 for payment of income tax online.

    The Challan 280 will be there below the Income Declaration Scheme option. Challan-for-tax-payment.jpg

  3. Enter Tax Payer Information: 

    – Select (0021) Income Tax (Other than Companies) if you are an individual taxpayer
    – Enter correct PAN of the taxpayer, Address and Assessment Year
    – Select Type of Payment Challan-ITNS-280-Tax-payer-information

  4. Select Mode of Payment

    Select Mode of Payment i.e, Net Banking or Debit Card and click on proceed.

  5. Enter the address details and proceed to make payment.

    If you select the Net Banking option then login to your net banking account and make the payment of income tax. If you select the Debit Card option, enter the card details and proceed to payment.

  6.  Once tax payment is done, the taxpayer’s counterfoil will be generated.

    Save the challan and enter the details of the same while filing your ITRTaxpayer-counterfoil

Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
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Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
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FAQs

Whom should I contact if I face any issue while making payment online?

If you face any issues while entering details in Challan 280 then you can connect to the TIN call center on 020-27218080 or write a mail at tininfo@nsdl.co.in. If you face any issues while making payment of tax then contact your bank. 

How do I get a duplicate challan for income tax paid?

Bank provides a facility for re-generation of challan online from the bank website. But if it is not possible to re-generate online then contact your bank and request them for the duplicate challan.

What if I select the wrong Assessment Year while paying Income Tax Online?

If you have selected the wrong assessment year while paying income tax then you can either contact your AO for making necessary changes or you can claim that challan in next year’s ITR.   

Got Questions? Ask Away!

  1. Hey @Shweta_Saini

    Advance tax is a ‘Pay as you earn’ tax, so it is required to be paid during the financial year in four different instalments in case your Taxable Liability is more than INR 10,000 for the financial year which stands true for you.

    The due dates for advance tax installments are:

    • 15th June - 15% of the tax liability
    • 15th Sept - 45% of the tax liability
    • 15th Dec - 75% of the tax liability
    • 15th March - 100% of the tax liability

    If you are eligible to pay advanced tax but have not paid advance tax, the penalty will be applicable u/s 234B and 234C.

    Let us know if you have any further questions!

  2. Hi Team, I had assumed that I will be able to pay advanced tax before March because I thought I could go for presumptive tax filing. But now it looks like I cannot opt for a presumptive taxation scheme. So does it mean that I did not pay the advanced quarterly tax that I was supposed to pay?

    If yes, what is the penalty in every case or are there some exceptions to avoid this interest penalty?

    Thanks in advance!

  3. Hey @riya_gupta

    You will be charged an interest penalty under section 234C for the delay/non-payment of advance tax during the year @1% per month on the shortfall amount. Additionally, under Section 234B a penalty interest is imposed on the taxpayers in case the advance tax payment is less than 90% of assessed tax liability during the year.

    You can avoid interest u/s 234B by paying at least 90% of your assessed tax liability by March 15, 2021.

    Hope this helps!

  4. Hey @TeamQuicko

    I have LTCG of more than 7 lakhs from the equity for this year. Is there a way to reduce my tax liability? Also, do I have to pay the tax in advance? If I fail to do so, what will be the penalty/interest percentage I have to pay during my tax filing in 2020?

  5. Hey @ViraajAhuja47, you can set off against non-speculative business loss like F&O for the current year. Long-term capital losses for the previous as well as the current year. Yes, you are required to pay advance tax in case your tax liability is more than INR 10,000 for the FY. The penalties for non-payment of advance tax are:

    Non-payment of Advance Tax u/s 234B 3: Interest at 1% in case the taxpayer fails to pay 90% of the tax liability in the same FY
    Delay in Payment of Advance Tax u/s 234C 1: if there is a delay in tax payment than interest @ 1% is applicable.

  6. Hello @S_P

    Tax paid on or before 31/03/2021 will be considered as advance tax for FY 2020-21. So a trader can determine the profits between 15th March to 31st March and pay the tax on 31st March, there will be no interest levied.

    Hope this helps!

  7. Hi @TEst_Netflix,

    Tax audit is applicable when:

    1. Turnover is above the threshold limit
    2. Profit is >=6% of the turnover

    You can use this tool to determine if tax audit is applicable to you:

    It is always a good practice to file your ITR and report all your financial transactions to avoid notice from the Income Tax Department. Especially after the SEBI and CBDT’s data partnership. If your total income is below the basic exemption limit, you won’t have any tax liability.

  8. Do I have to pay Advance Tax if the TDS for the year is sufficient to cover tax liabliltiy?

    Does Dividend on equity shares attract separate Advance Tax or is it just another source of income?

  9. Hi @vivek25,

    You are liable to pay advance tax if your total outstanding tax liability for the financial year after TDS is above INR 10,000.

    To calculate your advance tax liability you need to add your estimated income for the financial year from all sources including - Salary, House Property, Capital Gains, Business & Profession and other sources.
    Next, subtract all eligible deductions, expenses, and Tax Credit available to you.
    Now, if your outstanding tax liability is above INR 10,000, you need to pay advance tax to avoid penalty u/s 234B and 234C.

    Hope this answers your query :slight_smile:

    You can also use the advance tax calculator to know your advance tax liability under the old and new tax regime

  10. Hi
    When I pay the advance tax through the ZERODHA-QUICKO platform, does it get saved/stored? For example I have paid for Q1. so when I have to pay for Q2, will this be automatically calculated?
    Thanks

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