Friday, April 1, 2011

How to file Income Tax return on your own ?

Filing of Income Tax Returns (ITR) is a legal obligation of every person whose total income for the previous year has exceeded the maximum amount that is not chargeable for income tax under the provisions of the I.T. Act, 1961.

E-Payment of taxes is a facility provided to the taxpayers to make income tax payments through internet by using net banking facility.
Where mandatory:
  • In case of all corporate assesses
  • In case of all assesses (other than company) Where provisions of Section 44 AB (Tax Audit) of the Income Tax Act is applicable.
  • Taxes can be paid from any location at any location at any time through your net banking account.
  • Instant transfer of funds from your account.
  • What you write on the e-challan will be directly sent to Income Tax Department. Banks will not do any data entry.
  • You can save/print the challan copy and the receipt copy.
  • As soon as your bank authorizes payment of the amount, you will receive a clear, legible receipt/counterfoil from your bank.
  • Transaction ID of the e-payment transaction will be available to you in your bank statement.
      You can check online if your money has actually reached the I-T Department.
For this you have to go to Tax In-formation Network Website: and click the box CIN BASED VIEW.
Requirements for e-payment of tax:
Having a computer with internet connection.
Having a bank account with net banking facility in one of the banks listed below.
Bank will provide the accountholder with a username and password. Password can be changed. Ensure confidentiality of username and password.
Suggestion is to open a separate bank account that shall be used only for the purposes of e-payment of taxes for safety purposes.
Procedure for payments of tax:
  • Log on to NSDL-TIN website (
  • Click on the icon e-payment: pay taxes online.
  • Click on “Please Click Here”
  • Select the required challan.
After selecting the required challan, you will be directed to the screen for entering the following data:
  • PAN for non-TDS payments and TAN for non-TDS payments
  • Name and address of the taxpayer
  • Assessment year
  • Major Head Code
  • Minor Head Code
  • Type of payment
  • Select the bank name from the drop down provided
In case of challan no., 280, 282 Tax Deduction/Collection Account Number (TAN) needs to be entered. Please endure that you enter PAN/TAN correctly, as this is extremely important for further processing.
The system will check the validity of PAN/TAN. In case PAN/TAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of tax.
After entering all the above detail click on Proceed button. TIN system will display the contents you have entered along with the “Name” appearing in the ITD database with respect to the PAN/TAN entered by you.
You can now verify the details entered by you. In case you have made a mistake in data entry, click on “Edit” to correct the same. If all the details and name as per ITD is correct, click on “Submit” button. You will be directed to the net-banking site provided by your bank.
TIN system will direct you to net banking facility of your bank, you will have to log on to the net banking site of your bank using your login ID and password/PIN provided by the bank. The particulars entered by you at TIN website will be displayed again.
You will now be required to enter the amount of tax you intend to pay and also select your bank account number from where you intend to pay the tax. After verifying the correctness, you can proceed with confirming the payment.
Your bank will process the transaction online by debiting the bank account indicated by you and generate a printable acknowledgment indicating the challan Identification Number (CIN). You can verify the status of the challan in the “Challan Status Inquiry” at NSDL-TIN website using CIN after a week, after making payment.
Apart from CIN given to you, you can check your online bank statement to verify the tax payment.


Procedure for e-payment:

1.     To pay taxes online the taxpayer will select the relevant challan i.e. ITNS 280, ITNS 281, ITNS 282 or ITNS 283, as applicable.
2.     Enter its PAN / TAN as applicable. There will be an online check on the validity of the PAN / TAN entered.
3.    If PAN/ TAN is valid the taxpayer will be allowed to fill up other challan details like accounting head under which payment is made, name and address of TAN and also select the bank through which payment is to be made, etc.
4.    On submission of data entered a confirmation screen will be displayed. If the taxpayer confirms the data entered in the challan, it will be directed to the net-banking site of the bank.
5.     The taxpayer will login to the net-banking site with the user id/ password provided by the bank for net-banking purpose and enter payment details at the bank site.
6.    On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.
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