Payment Voucher (Challan 280) is a prescribed form used for payment of income tax directly by taxpayers to the government. It is commonly used for paying advance tax, self-assessment tax, and regular tax.
It ensures proper credit of tax paid against your PAN.
1. When is Challan 280 Used
Challan 280 is used for:
- Advance Tax Payment
- Self-Assessment Tax (before filing ITR)
- Regular Tax (as per assessment demand)
It is one of the most commonly used challans by individuals and businesses.
2. Types of Payments Under Challan 280
While filling the challan, you must select the correct type:
- (100) Advance Tax
- (300) Self-Assessment Tax
- (400) Tax on Regular Assessment
Selecting the wrong type can create mismatches.
3. Mode of Payment
Challan 280 can be paid:
- Online through net banking or debit card
- Offline at authorised bank branches
Online payment is now the preferred method.
4. Details Required
While filling Challan 280, you need:
- PAN number
- Assessment Year
- Type of payment
- Amount of tax, interest, penalty (if applicable)
Accuracy is critical to avoid credit issues.
5. Proof of Payment
- After payment, a Challan Identification Number (CIN) is generated
- CIN includes:
- BSR Code of bank
- Date of payment
- Challan serial number
This acts as proof and is required for verification.
6. Reflection in Tax Records
- Payment reflects in Form 26AS and AIS
- Must be matched while filing Income Tax Return
7. Common Mistakes
- Selecting wrong assessment year
- Choosing incorrect payment type
- Entering wrong PAN
- Not verifying reflection in Form 26AS
Practical Insight
Most tax issues with payments are not about paying less.
They’re about:
- wrong selection
- wrong year
- wrong classification
Even if you pay correctly,
a small mistake here can make it look unpaid.
How N D Savla & Associates Can Help
At N D Savla & Associates, we help you:
- Ensure correct tax payment through Challan 280
- Reconcile payments with Form 26AS and AIS
- Avoid mismatches and demand notices
- Handle corrections and rectifications
