Difference between Challan 280 and Challan 281

Updated: 31-01-2023 06:37:36 AM

Challan is a form used for paying tax to the government. Tax paid through a challan is first deposited with the authorized banks, and subsequently with the Income Tax department. Payment through a challan can be either made online via net banking or offline by submitting the challan at the designated bank branches. In this article, we will discuss about Challan No. / ITNS 280 and Challan No. / ITNS 281 and the key difference between them. 

Difference between Challan 280 and Challan 281

The main difference between Challan 280 and Challan 281 is with regards to their applicability for payment of different types of tax. This key difference is as follows: 

Challan 280	Challan 281
For the payment of advance tax, self-assessment tax, tax on regular assessment, surtax, tax on distributed profits of domestic company and tax on distributed income to unit holders.	For depositing Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) to the Income Tax department.

Challan No. / ITNS 280

Challan 280 is used for the payment of advance tax, self-assessment tax, tax on regular assessment, surtax, tax on distributed profits of domestic company and tax on distributed income to unit holders. 

It should be noted that in many cases there is no fixed deadline for payment of taxes through Challan 280, as majority of taxes paid are demand-based. However, following deadlines need to be followed for payment of advance tax:

Due Date	Amount payable
On or before 15th June	Up to 15% of advance tax
On or before 15th September	Up to 45% of advance tax
On or before 15th December	Up to 75% of advance tax
On or before 15th March	Up to 100% of advance tax

How to use Challan 280?

Payment through challan no. 280 can be made online as well as through cash/demand draft/cheque at the designated bank branches. 

Online Method

• Visit the Tax Information Network (TIN) website of the Income Tax department.
• Proceed with Challan 280.
• Fill out the form carefully to ensure that all the details are correct.
• Complete the payment and save the challan receipt/counterfoil bearing the 5-digit challan serial number and 7-digit BSR code.
• In case you forget to download the challan receipt, you can retrieve it from your net banking account.

Offline Method  

• Visit the official website of Income Tax department.
• Download Challan 280.
• Similar to the online method, fill in all the details.
• Submit the challan at one of the designated bank branches. 
• Make the payment through cash/cheque/demand draft.
• Collect the challan receipt/counterfoil bearing the 5-digit challan serial number and 7-digit BSR code.

Once you have paid the tax using challan 280, mention the details in your ITR. You will need to furnish the 5-digit challan serial number and 7-digit BSR code under the ‘Self Tax Payments’ tab.

Know more about Income Tax Payment 

Challan no./ITNS 281

Challan no./ITNS 281 is used for the payment of Tax Deducted at Source (TDS)/ Tax Collected at Source (TCS) by both company and non-company deductees. 

Payments made through Challan 281 should comply with the following deadlines:

• TDS for payments, except for purchase of property should be deposited by 7th of the following month.
• TDS for purchase of property should be deposited by 30th of the following month.
• TDS in the month of March should be deposited by 30th April.

If there is a delay in the deposition of TDS/TCS, an interest at the rate of 1.5% per month or part of the month from the date of deduction will be levied as a late fee.

For example, if TDS for the month of May is deposited on 16th August, interest will be charged at the rate of 1.5% per month or part of the month for 3 months, as the last date would have been 7th June. 

How to use Challan 281?

Payment through challan no. 281 can be made online as well as through cash/demand draft/cheque at the designated bank branches. 

Online Method

• Visit the Tax Information Network (TIN) website of the Income Tax department.
• Proceed with Challan 281.
• Fill out the form carefully to ensure that all the details are correct.
• Complete the payment and save the challan receipt/counterfoil bearing the challan identification number (CIN).

Offline Method  

• Visit the official website of Income Tax department.
• Download Challan 280.
• Similar to the online method, fill in all the details.
• Submit the challan at one of the designated bank branches. 
• Make the payment through cash/cheque/ demand draft.
• Collect the challan receipt/ counterfoil bearing the payment details from the bank for future references.