How to make OLTAS Challan Payment

Published On - March 15, 2016

admin Income Tax

Direct taxes made by taxpayers can only be collected by banks that employ the Online Tax Accounting System (OLTAS). Previously, the direct taxes paid at the banks had to be collected and consolidated manually, which was a time consuming process that was both cumbersome as well as prone to human error on a fairly frequent basis. Since then, banks have moved from this set up to the Online Tax Accounting System in order to not only speed up the process of collecting and assessing direct tax payments, but to rid it of errors so as to provide accuracy of information and data to the taxpayers.

In order to make challan payments through the OLTAS system, the taxpayers are required to already have an online banking account at any of the banks that make us of the Online Tax Accounting System. E-payment of taxes has made it easier and more convenient for both taxpayers as well as the banks to pay as well as collect direct taxes respectively. The banks that offer the OLTAS facility to taxpayers are as follows:

  • Allahabad Bank
  • Andhra Bank
  • Axis Bank
  • Bank of Baroda
  • Bank of India
  • Bank of Maharashtra
  • Canara Bank
  • Central Bank of India
  • Corporation Bank
  • Dena Bank
  • HDFC Bank
  • ICICI Bank
  • IDBI Bank
  • Indian Bank
  • Indian Overseas Bank
  • Jammu & Kashmir Bank
  • Oriental Bank of Commerce
  • Punjab National Bank
  • State Bank of Bikaner & Jaipur
  • State Bank of Hyderabad
  • State Bank of India
  • State Bank of Indore
  • State Bank of Mysore
  • State Bank of Patiala
  • State Bank of Travancore
  • Syndicate Bank
  • UCO Bank
  • Union Bank of India
  • United Bank of India
  • Vijaya Bank

How to make OLTAS Payment?

Taxpayers can make the challan payment either personally at the bank or via e-payment through their relevant bank’s net banking service.

Payment made at Banks:

Taxpayers can visit their respective authorised banks personally and make direct tax challan payments through the Online Tax Accounting System at the bank. All authorised banks accept payment of direct taxes either through means of cash or through a demand draft or cheque.

  • Payment made by Cash: When taxpayers make direct tax payments via cash, the bank gives the torn off section of the challan back to the taxpayer immediately after the payment is made. The torn off section of the challan, which the taxpayer receives will contain the CIN, which is also known as an unique Challan Identification Number.
  • Payment Made By Cheque or Demand Draft – Taxpayers making direct tax payments via cheque or demand draft are required to draw the instruments on the branch they are making the payment at or on any other authorised bank or branch with a single challan. Unlike the procedure involving cash payments, the torn off section of the challan will only be given back to the taxpayer once the cheque or the demand draft has been realised. However, it must be noted that the payment of the tax will be considered to have been on the date of submission of the cheque or demand draft.

Payment made Online (E-Payment):

Taxpayers who prefer to make direct tax challan payments online via their authorised banks e-payment or net banking portals can do so by following the steps outlined below:

  • For the taxpayer to make the tax payment through online means he will be required to select one of the following challan numbers that are applicable to him or her:
    • ITNS 280
    • ITNS 281
    • ITNS 282
    • ITNS 283
  • After choosing the relevant challan, the taxpayer will be required to enter his or her PAN number or TAN number, depending on which one is applicable. Following this, a verification will be carried out online to determine whether the PAN or the TAN that has been entered is valid or not.
  • If the verification is successful and the PAN or TAN is proven valid, the taxpayer will be required to enter certain details pertaining to the challan such as:
    • The account head under which the tax payment has been made
    • The name as well as the address of the PAN or TAN holder
    • The bank at which the taxpayer will be making the payment
    • Any other relevant details
  • Once the relevant data has been entered and submitted, the taxpayer will be shown a screen where he or she will be required to confirm the data entered. Following confirmation of the data entered by the taxpayer in the challan, he or she will then be routed to the bank’s net banking portal.
  • Once directed to the bank’s net banking portal, the taxpayer will be required to login using his or her net banking user id and password that was allotted by the bank. After logging in, the taxpayer can enter the payment information on the screen.
  • After the payment has been deemed successful, a counterfoil of the relevant challan will be shown on the screen, which will serve as evidence that the taxpayer has made the payment. The counterfoil which will contain the following details:
    • The Customer Identification Number (CIN)
    • The details of the payment made

    • The name of the bank that facilitated the e-payment