Do I need to insist on some proof of payment from the banker to whom I have submitted the challan?

The filled-up taxpayer’s counterfoil will be stamped and returned to you by the bank. Please ensure that the bank’s stamp contains BSR Code [Bankers Serial Number Code], Challan Identification Number [CIN], and the date of payment. In case of e-payment a computer generated copy will be issued.

What are the precautions that I should take while filing up the tax payment challan?

While making payment of tax, apart from other things, one should clearly mention following :

• Head of payment, i.e., Corporation Tax/Income-tax (other than companies)
• Amount and mode of payment of tax
•  Type of payment [i.e., Advance tax/Self assessment tax/Tax on regular assessment/Tax on Dividend/Tax on distributed Income to Unit holders/Surtax]
•  Assessment year
• The unique identification number called as PAN [Permanent Account Number] allotted by the IT Department.​

What is a tax on regular assessment and how is it paid ?

Under the Income-tax Act, every person has the responsibility to correctly compute and pay his due taxes. Where the Department finds that there has been understatement of income and resultant tax due, it takes measures to compute the actual tax amount that ought to have been paid. This demand raised on the person is called as Tax on regular assessment. The tax on regular assessment has to be paid within 30 days of receipt of the notice of demand.

How is advance tax is calculated and paid ?

Advance tax is to be calculated on the basis of expected tax liability of the year. Advance tax is to be paid in instalments as given below:​​

a) In case of all the assessees (other than the eligible assessees as referred to in section 44AD) :

i) Up to 15 per cent – On or before 15th June

ii) Up to 45 per cent – On or before 15th September

iii) Up to 75 per cent – On or before 15th December​

iv) Up to 100 per cent –On or before 15th March

b) In case of eligible assessee as referred to in Section 44AD:

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Up to 100 per cent – On or before 15th March

Note: Any advance tax paid on or before 31st day of March shall also be treated as paid during the same financial year.

[Substituted by the Finance Act, 2016 w.e.f. 1-6-2016]

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The deposit of advance tax is made through challan ITNS 280 by ticking the relevant column, i.e., advance tax.

In the challan there are terms like Income tax on companies & Income tax other than companies.What do they mean?

The tax that is to be paid by the companies on their income is called as corporate tax, and for payment of same in the challan it is mentioned as Income-tax on Companies (Corporation tax). Tax paid by non-corporate assessees is called as Income-tax, and for payment of the same in the challan it is to be mentioned as Income-tax (other than Companies).