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Tax Collection
Overview
Direct Tax Collections
Direct Tax Faq's
Direct Tax Challan's
Excise & Service Tax Collections
Excise & Service Tax Faq's
Tax Collection
FAQs - Direct Tax
What types of taxes are included under Direct Tax ?
What type of taxes can we collect?
When are these taxes payable?
How is tax paid ?
What is a challan ?
Can all our branches accept taxes ?
What is the process for depositing taxes and is it the same for all types of challans and taxes?
After how many days can the tax payer collect his challans from the branch ?
Can the tax payer deposit Cash instead of Cheque ? In that case, what would be the TAT ?
What if the Paper Token is lost by the Tax Payer ?
What if the bank losses the challan ?
What is On Line Tax Accounting System ?

What types of taxes are included under Direct Tax ?

Corporation Tax (Income tax payable by Corporates)
Income Tax
Hotel Receipts Tax (since abolished)
Interest Tax
Other Taxes on Income & Expenditure (since abolished)
Estate Duty (since abolished)
Taxes on Wealth
Gift Tax (since abolished)
Securities Transaction Tax
Banking Cash Transaction Tax
Fringe Benefit Tax

What type of taxes can we collect?

We have been permitted by the Central Board of Direct Taxes (CBDT) and the Reserve Bank of India (RBI) to collect all the above taxes. In case of the "since abolished", as mentioned above, these are not payable for the current assessment year. However, payments under these heads for earlier assessment years would be accepted.

When are these taxes payable?

All taxes are payable at a periodicity as defined by the Income Tax Act, 1956. For example, Corporation Tax and Income Tax include advance tax that is paid on the 15 of every Quarter i.e., June 15, September 15, December 15 and March 15 each year. Further, Tax Deducted at Source (TDS) from Salaries, Rent, Contractor payments, etc. are required to be paid by the 7th of the following month.

How is tax paid ?

The assessee pays the tax by way of a challan along with the cheque or cash.

What is a challan ?

CBDT has defined specific forms (aka Challans) for each type of tax. These are required to be filled in by the taxpayer and submitted along with the cheque/cash at the bank counter. The Challans are as follows:
A common single copy challan No. ITNS 280 for payment of Income tax, Corporation tax and Wealth tax
A common single copy challan No. ITNS 281 for depositing Tax Deducted at Source from corporates or non-corporates

A common single copy challan No. ITNS 282 for payment of Gift Tax, Estate Duty, Expenditur Tax, Other direct taxes and Securities Transaction Tax.For Income Tax and Corporation Tax, there will be different challans, one for Tax Deducted at Source (TDS) and one for regular taxes.

A common single copy challan No. ITNS 283 for payment of Banking Cash Transaction Tax and Fringe Benefit Tax.

Can all our branches accept taxes ?

At present CBDT and RBI have permitted us to collect taxes at specified branches only.

What is the process for depositing taxes and is it the same for all types of challans and taxes ?

Yes, the process is the same and is as follows :

Step 1

The taxpayer will come to the collecting branch of the bank with his challan and the cheque and submit the same at the specified collection counter.

Step 2

The collection counter staff will scrutinise the challan as per the defined checklist, which will be provided at the counter. The Cheques / Payorder should be in favour of "HDFC Bank a/c Income Tax (tax as applicable)".

Step 3 Collection counter staff will issue a pre-numbered "Paper Token" as an acknowledgement of his challan and cheque.
Step 4 The challans will be stamped with the "Received Date". After the cheques have been realized, the challans will be stamped with the "Date of Realisation" and further processed.
Step 5 The branch will release the Challan ONLY against receipt of the original paper token issued to the taxpayer. The branch will take a signature of the bearer on the reverse of the token at the time of release of the challans.
Step 6 The stamp on the challan and its counterfoil will indicate a unique Challan Identification Number (CIN) comprising of :

Seven digit BSR Code allotted by RBI to that branch
Date of deposit (dd/mm/yy i.e. six digits)
Challan serial number in 5 digits.

CIN will, therefore, be unique for each challan through out the country and will be used for identifying the challan in the On Line Tax Accounting System.
Step 7 The bank will capture the entire data of the challan and transmit it electronically to the Income-tax Department. The information received from banks will be used by the Department to give credit for the tax paid based on CIN.

After how many days can the tax payer collect his challans from the branch ?

We estimate this to be the third working day from the date of submission of challan. However, if the assessee pays tax through a HDFC Bank Cheque at an authorised branch of HDFC Bank, then the challan will be processed immediately and returned to the assessee across the counter.

Can the tax payer deposit Cash instead of Cheque ? In that case, what would be the TAT ?

Yes, he can deposit cash too. However, in this case, he will first deposit the cash at the teller by filling up a special three-ply cash deposit slip. The Teller will retain one copy for posting and return two copies to the tax payer. The Taxpayer will retain one copy and attach the second copy to the challan and submit the same at the Branch Collections Counter. Thereafter the process remains the same (i.e., collect paper token, processing, etc.).

The date would be mentioned on the Paper Token. We estimate this to be the third working day from the date of submission of challan.

What if the Paper Token is lost by the Tax Payer ?

In case of reported loss of Paper Token by the taxpayer, a letter to this effect is to be obtained from the assessee/taxpayer. Signature of assessee /taxpayer should be verified against signatures appearing on the Challan. Only on confirmation of these signatures the Challans would be handed over to the TaxPayer.

What if the bank losses the challan ?

CBDT has specified a certificate that would be issued in lieu of the lost challan. This would be available at all the collecting branches.

What is On Line Tax Accounting System ?

From June 01, 2004 the Income-tax Department has introduced a new system for payment of taxes called Online Tax accounting System (OLTAS). This system not only simplifies the procedure for payment at the collecting branches of designated banks but is also a breakthrough in accounting of direct tax payments. All collecting branches of various banks have been networked and integrated with Tax Information Network (TIN) and the Income Tax Department. OLTAS has introduced the single copy challan-cum-acknowledgement form instead of the erstwhile four-copy challan. The challan will have a unique identification number called Challan Identification Number (CIN). With the help of CIN and PAN every payment will be uniquely identified thereby resulting in correct tax credit as also enable online transmission of details of tax payments to the Income Tax department. Further, it will not be necessary to enclose a copy of challan along with the return of income.