Difference Between Challan 280 and Challan 281

Challan is a form that is used to pay taxes to the government. The authorized banks receive the tax paid through a challan before it is deposited with the Income Tax department. Payments made with challans can be done offline at the appropriate bank branches or online through net banking. The main distinctions between Challan No. / ITNS 281 and Challan No. / ITNS 280 will be covered in this article.

Challan 280: Understanding Income Tax Payments

In the sphere of Indian income tax payments, it holds paramount significance. It primarily eases the process of various types of income tax payments. Individuals, companies or any other liable entity utilise it as their medium for meeting the obligatory commitment of income tax payment. Its versatility manifests through its adeptness at managing diverse tax payment scenarios:

• Advance Tax
  Frequently, individuals boasting substantial income must proactively pay taxes at predetermined intervals. Challan 280 serves as the mechanism for these advanced tax disbursements.
• Self-Assessment Tax Individuals may need to make additional tax payments after they evaluate their tax liability. In such cases, individuals can use Challan 280 for the self-assessment tax payment.
• Regular Assessment Tax
  During the regular assessment by the Income Tax Department, should any additional tax liability arise, Challan 280 facilitates the payment of these taxes.
• Sections Covered
  Challan 280 accommodates payments under various sections: Section 100 for advance tax, Section 400 for self-assessment tax, and Section 800 for regular assessment tax.

The below deadlines must be met for advance tax payments –

 

Last Date	Payment Amount
15th June	Up to 15%
15th September	Up to 45%
15th December	Up to 75%
15th March	Up to 100%

Challan 281: Facilitating TDS Payments

This is dedicated to a specific aspect of taxation: Tax Deducted at Source (TDS). Challan 281 relates to indirect tax payments. These are made by entities responsible for deducting TDS.

1. TDS Deductors
   Primarily, entities acting as deductors – including employers, businesses, or individuals making payments subject to TDS, utilise Challan 281. These particular entities, before disbursing the actual payment, deduct a predetermined percentage of it as tax.
2. Nature of Payments
   Various payments like salaries, rent, and professional fees undergo a deduction of TDS. The purpose behind Challan 281 is to guarantee an appropriate credit transfer of this deducted TDS directly into government accounts.
3. Sections Covered
   Sections of the Income Tax Act necessitating TDS deductions require payments that ultimately populate Challan 281. These could encompass sections pertaining to salaries (Section 192), rent (Section 194I), professional fees (Section 194J), and various others.
4. Sections Covered
   Sections of the Income Tax Act necessitating TDS deductions require payments that ultimately populate Challan 281. These could encompass sections pertaining to salaries (Section 192), rent (Section 194I), professional fees (Section 194J), and various others.

Distinguishing Features

1. Entities Involved
   Challan 280 serves a diverse range of taxpayers like individuals, businesses and more. However, it contrasts with Challan 281, a more specialised form which caters exclusively to entities responsible for TDS deduction.
2. Tax Categories
   Challan 280 covers an extensive array of income tax categories. However, Challan 281, with its narrow focus on Tax Deducted at Source (TDS), ensures appropriate remittance of source-deducted taxes.

Using Challan 280 for Income Tax Payment

Online Method

1. Visit Tax Information Network (TIN) Website
   Access the official TIN website of the Income Tax Department to initiate the process.
2. Select Challan 280
   Choose the option for Challan 280 to begin the online payment procedure.
3. Complete the Form
   Thoroughly fill out the form with accurate details to avoid discrepancies.
4. Make Payment
   Execute the payment through the preferred online mode and retain the challan receipt. This receipt will bear a 5-digit challan serial number and a 7-digit BSR code.
5. Save the Receipt
   Ensure the safekeeping of the challan receipt. If forgotten, retrieval is possible through your net banking account.

Steps	Online Method
1. Visit TIN Website	Access official TIN website.
2. Select Challan 280	Choose Challan 280 for online payment.
3. Complete Form	Fill out the form accurately.
4. Make Payment	Execute online payment and save receipt.
5. Save the Receipt	Retain and retrieve receipts if needed via net banking.

 

Offline Method

1. Visit Income Tax Department’s Website
   Navigate to the official website of the Income Tax department to access the required forms.
2. Download Challan 280
   Download the Challan 280 form and proceed with the offline method.
3. Fill in Details
   Similar to the online process, meticulously fill in all necessary details on the downloaded form
4. Submit at Designated Bank
   Present the filled challan at any designated bank branch and choose your preferred payment mode—cash, cheque, or demand draft.
5. Collect Challan Receipt
   Upon successful payment, collect the challan receipt, which will feature the 5-digit challan serial number and 7-digit BSR code.

Steps	Offline Method
1. Visit Website	Navigate to Income Tax Department’s website for required forms.
2. Download Form	Download Challan 280 form for offline payment.
3. Fill Details	Meticulously complete necessary details on the form.
4. Submit at Bank	Present filled challan at a designated bank for payment.
5. Collect Receipt	Receive challan receipt with 5-digit serial and 7-digit BSR code.

 

Post-Payment Steps

• Update ITR Details
  Incorporate the payment details from Challan 280 into your Income Tax Return (ITR). Under the ‘Self Tax Payments’ tab, provide the 5-digit challan serial number and 7-digit BSR code.
• Ensure Accuracy
  Double-check that all details are accurately reflected in your ITR to maintain compliance.

Using Challan 281 for Efficient TDS Payments

Online Method

1. Access Tax Information Network (TIN) Website
   Initiate the TDS payment process by visiting the official TIN website of the Income Tax department.
2. Select Challan 281
   Navigate to the option for Challan 281 to kickstart the online payment procedure.
3. Thorough Form Completion
   Ensure meticulous completion of the online form, verifying that all details are accurate to prevent discrepancies.
4. Execute Payment
   Complete the payment through the chosen online mode and safeguard the challan receipt, also known as the counterfoil, featuring the unique Challan Identification Number (CIN).
5. Save Transaction Details
   Securely store the transaction details for future reference, aiding in record-keeping and reconciliation.

Securely store the transaction details for future reference, aiding in record-keeping and reconciliation.

Steps	Online Method
1. Access TIN Website	Visit official TIN website.
2. Select Challan 281	Choose Challan 281 for online TDS payment.
3. Complete Form	Ensure accurate completion of the online form.
4. Execute Payment	Complete payment online and save the counterfoil (receipt) with Challan Identification Number (CIN).
5. Save Transaction Details	Store transaction details for future reference.

Offline Method

1. Visit Income Tax Department’s Website
   Access the official Income Tax department website to procure the required forms.
2. Download Challan 281
   Download the Challan 281 form and proceed with the offline method.
3. Careful Form Completion
   Analogous to the online process, meticulously fill in all essential details on the downloaded form.
4. Bank Submission
   Submit the filled challan at a designated bank branch, opting for your preferred payment mode—be it cash, cheque, or demand draft.
5. Receipt Collection
   Upon successful payment, collect the challan receipt or counterfoil from the bank, which will contain comprehensive payment details.

Steps	Offline Method
1. Visit IT Department	Access Income Tax department website for forms.
2. Download Challan 281	Download income tax Challan 281 form for offline TDS payment.
3. Complete Form	Meticulously fill in essential details on the downloaded form.
4. Bank Submission	Submit filled challan at a designated bank branch using preferred mode—cash, cheque, or demand draft.
5. Receipt Collection	Collect the challan receipt or counterfoil from the bank, containing payment details.

Post-Payment Protocol

1. Maintain Documentation
   Safeguard all relevant documents, including the Challan Identification Number (CIN) or the counterfoil, ensuring a comprehensive record of the TDS payment.
2. Record Keeping for Future Reference Organise and store transaction details for future reference, aiding in audits and financial reconciliations.

In Conclusion

To make sure you follow India’s tax regulations correctly, it is very important to know the differences between these two challans. If you pay taxes yourself or if you take out TDS for others, knowing when to use each form is key for paying the taxes right and on time.

Frequently Asked Questions

Which payments does Challan 280 cover?

Advance, self-assessment, and regular assessment taxes under various sections.

Who primarily uses Challan 281?

Employers, businesses, or individuals deducting TDS before payments.

What are the steps for Challan 280 payments?

Access TIN website, select Challan 280, complete form, make payment, and retain receipt.