For the data of tax payment which needs to be uploaded online, there is a detailed format provided by the Income Tax department. Each of the 32 banks are required to follow this format for any information that they need to exchange or generate with respect to taxes. After the files have been made in the specified format, the NSDL provides a FVU i.e. File Validation Utility. This is used to validate if the file has been made in a proper manner.
The taxpayer, as per OLTAS, has to use a single and common challan for the following:
- Challan Number ITNS 280 for regular income tax and corporate taxes
- Challan Number ITNS 281 for the deposit of TCS and TDS
- Challan Number ITNS 282 for the payment of direct taxes like wealth tax, gift tax, estate duty, hotel receipts tax, securities transactions tax and expenditure tax.
- Challan Number ITNS 283 for any taxes which relate to cash transactions in the bank or fringe benefits
The tear off section of the Challan contains the CIN number, details of the bank, date and the serial number. The bank needs to stamp the tear off and this has to be given to the tax payer. This CIN is also a proof that the tax payer had paid the taxes and thus, this needs to be filed along with the Income Tax Returns every year. The Challans are available online and at the local tax office.