How to Pay Advance Tax Online Using Challan 280
- PRITI SIRDESHMUKH
- 1 day ago
- 10 min read
Paying advance tax is mandatory if your total tax liability exceeds ₹10,000 in a financial year. The process has become entirely digital, with Challan 280 serving as the official form to pay advance tax online under the Income Tax Act, 1961. This form is used for various payments such as advance tax, self-assessment tax, and regular assessment tax, ensuring timely compliance with tax obligations. TaxBuddy simplifies this process by helping taxpayers calculate their advance tax accurately and complete payments through a guided online system.
Table of Contents
What Is Challan 280?
Challan 280 is an official payment form issued by the Income Tax Department under the Income Tax Act, 1961. It is used for depositing various types of direct taxes, including advance tax, self-assessment tax, and regular assessment tax. Whether a taxpayer is an individual, professional, or business owner, Challan 280 provides a convenient way to make tax payments online through the e-Pay Tax portal or offline at authorized banks. When paying online, the taxpayer needs to select “Challan No. 280” from the available options and choose the applicable payment type such as “Advance Tax (100)” or “Self-Assessment Tax (300).” Once the payment is completed, a challan receipt is generated containing essential details like the BSR code, challan serial number, and date of payment. This receipt serves as proof of tax payment and must be retained for future reference while filing the income tax return.
Who Needs to Pay Advance Tax?
Advance tax, often referred to as “pay-as-you-earn” tax, is applicable to anyone whose total tax liability exceeds ₹10,000 in a financial year after adjusting TDS or TCS. This includes salaried individuals with additional income from rent, capital gains, or interest, as well as professionals, freelancers, and business owners with taxable income. Senior citizens aged 60 years or above who do not have income from business or profession are exempt from paying advance tax. The objective of advance tax is to ensure a steady inflow of revenue to the government and prevent a lump-sum burden on taxpayers at the end of the financial year. Calculating advance tax accurately and paying it on time helps avoid penalties under Sections 234B and 234C.
Step-by-Step Process to Pay Advance Tax Online Using Challan 280
Gather Required Information Keep your PAN, assessment year, total estimated income, and tax calculation details ready before starting. Make sure your PAN is linked to Aadhaar and verified on the portal.
Visit the Income Tax e-Pay Tax Portal Go to the official Income Tax Department’s e-payment portal. Select the option to pay tax online and proceed to the Challan 280 form.
Select the Correct Challan and Payment Type Choose “Challan No. 280” and under “Type of Payment,” select “Advance Tax (100).” This ensures the payment is categorized correctly for credit against your account.
Enter PAN, Assessment Year, and Tax Details Fill in your PAN carefully, select the correct Assessment Year (for FY 2024–25, choose AY 2025–26), and enter your full postal address. Then, enter the tax components — basic tax, surcharge (if applicable), and health and education cess.
Choose the Payment Method Select a payment mode such as net banking, debit card, or payment gateway. Several major banks support online tax payments directly through the portal.
Verify and Submit Payment Double-check the details before confirming. Once submitted, you’ll be redirected to your bank’s payment page to complete the transaction securely.
Download and Save the Challan Receipt After payment, a confirmation page with your challan details will appear. Download or print this receipt — it contains the BSR code, date, and challan serial number required for claiming tax credit while filing your ITR.
Advance Tax Due Dates and Installment Schedule
Advance tax payments must be made in installments throughout the financial year, based on the estimated total income. The due dates and percentage of tax payable are as follows:
For taxpayers who opt for presumptive taxation under Section 44AD or 44ADA, the entire advance tax amount (100%) must be paid on or before 15th March. Timely payments help avoid interest charges and make year-end filing smoother.
How to Verify Advance Tax Payment on the Income Tax Portal
Once the advance tax payment is made, it is important to verify whether the payment has been successfully reflected in your account. Log in to the Income Tax portal and navigate to the “e-File” section, then choose “View Form 26AS” or “Annual Information Statement (AIS).” The details of your tax payment — including BSR code, challan number, and amount — should appear there within a few days. If the payment does not reflect, cross-check the challan details and confirm that the correct PAN and assessment year were entered. Retaining the payment receipt ensures easy verification and correction, if needed.
Common Errors While Paying via Challan 280 and How to Correct Them
Many taxpayers make unintentional mistakes while filling out Challan 280, such as selecting the wrong assessment year, entering incorrect PAN, or choosing the wrong type of payment (for instance, selecting self-assessment tax instead of advance tax). These errors can delay tax credit reflection or cause mismatches during ITR filing. To correct such errors, submit a written request to your bank branch if the payment was made offline or raise an online correction request through the TIN-NSDL website for online payments. Ensure that corrections are completed before filing your return to avoid complications during tax processing.
Difference Between Advance Tax and Self-Assessment Tax under Challan 280
While both advance tax and self-assessment tax are paid using Challan 280, the key difference lies in timing. Advance tax is paid during the financial year on estimated income before the year ends, whereas self-assessment tax is paid after computing the final tax liability at the time of filing the return. Advance tax helps taxpayers distribute their tax burden across the year, while self-assessment tax ensures that any remaining balance is cleared before submission of the ITR. Paying advance tax on time minimizes the chances of interest penalties and provides better financial control.
Benefits of Paying Advance Tax Online
Paying advance tax online through Challan 280 offers convenience, accuracy, and instant confirmation. The digital system allows taxpayers to complete payments anytime without visiting the bank physically. It also ensures faster processing and automatic reflection of tax credits in Form 26AS, simplifying ITR filing later. Moreover, timely payment of advance tax prevents last-minute financial pressure and eliminates interest under Sections 234B and 234C. With secure online transactions and immediate challan generation, the process is both efficient and transparent.
Why Use TaxBuddy for Advance Tax Payment?
TaxBuddy simplifies the entire process of paying advance tax by providing automated tax calculation and step-by-step payment assistance. The platform integrates directly with the official e-Pay Tax portal, ensuring error-free data entry and accurate challan generation. Users receive personalized reminders for upcoming installments and expert insights on estimating advance tax based on income projections. TaxBuddy also keeps records of past payments, allowing for smooth reconciliation while filing returns. By automating calculations and minimizing manual effort, TaxBuddy ensures a seamless experience for taxpayers across all income categories.
Conclusion
Paying advance tax online using Challan 280 helps maintain timely compliance and prevents unnecessary penalties. With the growing digital infrastructure, the process is simpler and faster than ever. Using trusted platforms like TaxBuddy enhances accuracy and ensures that every step — from calculation to challan generation — is handled smoothly. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy provides both self-filing and expert-assisted options for taxpayers. The self-filing plan is designed for individuals who are familiar with the process of filing income tax returns and prefer to manage their taxes independently using AI-driven tools. The expert-assisted plan, on the other hand, is ideal for those who prefer professional help in managing complex cases such as multiple income sources, capital gains, foreign income, or business taxation. Under this plan, TaxBuddy’s experts handle the entire filing process — from computation and document review to submission and post-filing support — ensuring complete accuracy and compliance with the Income Tax Act.
Q2. Which is the best site to file ITR?
Among the many available platforms, TaxBuddy stands out as one of the most trusted and efficient platforms for filing ITR online in India. Its AI-driven interface simplifies data entry, automatically extracts financial details from Form 16, Form 26AS, and AIS, and ensures error-free return filing. Additionally, users get expert assistance, refund tracking, and notice management features in one place. Unlike generic portals, TaxBuddy combines automation with personalized expert review, making it suitable for salaried individuals, freelancers, NRIs, and business owners who seek accuracy and convenience in their tax filing process.
Q3. Where to file an income tax return?
Income tax returns can be filed online through the official Income Tax Department’s e-filing portal or through authorized third-party platforms like TaxBuddy. While the government portal offers basic filing facilities, TaxBuddy enhances the experience by providing guided filing options, automated document uploads, and smart error detection. It also ensures that the correct ITR form is selected based on the user’s income profile, reducing the chances of notice generation. Filing through TaxBuddy also gives users access to post-filing support, which is not available on the government portal.
Q4. Can advance tax be paid in installments?
Yes, advance tax can be paid in installments according to the schedule prescribed by the Income Tax Department. Taxpayers are required to pay advance tax in four installments throughout the financial year — 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15. This structured payment schedule helps spread out the tax burden and ensures that taxpayers meet their obligations without last-minute stress. Those under the presumptive taxation scheme (Sections 44AD or 44ADA) can make a single payment of 100% by March 15.
Q5. How do I check if my advance tax payment is reflected on the portal?
To verify your advance tax payment, log in to the official Income Tax portal and access your Form 26AS or Annual Information Statement (AIS). The details of your tax payment, such as the BSR code, challan serial number, date, and amount, will appear under the “Advance Tax” section. This confirmation usually appears within 2–3 working days after payment. If the payment does not reflect, it may indicate a delay in bank processing or an incorrect PAN/assessment year entry. In such cases, you can contact your bank or submit a correction request through the TIN-NSDL website.
Q6. What happens if advance tax is not paid before due dates?
If advance tax is not paid within the prescribed due dates, the taxpayer becomes liable to pay interest under Sections 234B and 234C of the Income Tax Act. Section 234B applies when 90% of the total tax liability is not paid before the end of the financial year, while Section 234C applies for delays in installment payments. These interest charges can range from 1% per month on the shortfall amount, depending on the delay. Paying advance tax on time helps avoid these penalties and ensures smooth financial planning throughout the year.
Q7. Can senior citizens be exempt from paying advance tax?
Yes, senior citizens aged 60 years or above who do not have any income from business or profession are exempt from paying advance tax. This exemption aims to reduce the compliance burden on retirees and those living on pension or investment income. However, if a senior citizen has business income, they must pay advance tax like other taxpayers. Even though exempt, such individuals can choose to pay voluntarily to avoid any interest liability if their total tax liability at year-end exceeds ₹10,000.
Q8. How to correct mistakes in Challan 280 after submission?
If you made an error while filling out Challan 280, such as entering the wrong assessment year, PAN, or payment type, you can request a correction. For online payments, corrections can be initiated through the TIN-NSDL portal by submitting an online correction form. For offline payments made at bank branches, you can submit a written correction request directly to the bank within seven days of payment. The request should include a copy of the challan, PAN card, and a formal letter stating the correction needed. Once approved, the corrected details will reflect in your Form 26AS.
Q9. Is it mandatory to save the BSR code and challan number?
Yes, saving the BSR (Basic Statistical Return) code and challan serial number is mandatory because these details serve as proof of tax payment. They are essential for reconciling your tax payments with the Income Tax Department’s records when filing your ITR. Without these details, claiming credit for the paid tax can become difficult. These details appear on the challan receipt after successful payment and later reflect in Form 26AS or AIS. It is recommended to download and store the receipt in a secure digital or physical format for future verification.
Q10. What is the difference between Challan 280 and Challan 281?
Challan 280 and Challan 281 serve different purposes under the Income Tax system. Challan 280 is used by individual taxpayers, professionals, and businesses to pay their own income tax, including advance tax, self-assessment tax, and regular assessment tax. Challan 281, however, is used by tax deductors or collectors to deposit Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) on behalf of others. In short, Challan 280 applies to your personal tax payments, while Challan 281 is for remitting taxes collected or deducted from others’ income.
Q11. Can advance tax be paid through UPI or credit card?
Yes, advance tax can now be paid through UPI, debit card, or credit card on the Income Tax e-Pay Tax portal. The government has enabled multiple payment options to make the process more accessible and user-friendly. Taxpayers can choose from authorized payment gateways that support UPI apps and cards from major banks. The process remains secure, and once the transaction is complete, the challan receipt with BSR code and payment details can be downloaded immediately. This digital convenience helps taxpayers make quick payments without needing net banking access.
Q12. Does TaxBuddy send reminders for advance tax due dates?
Yes, TaxBuddy’s platform is equipped with automated alerts and reminders for advance tax due dates. The system analyzes each user’s income profile and tax obligations to send timely notifications before every installment. These reminders help taxpayers avoid missing deadlines and prevent unnecessary interest penalties. Additionally, the TaxBuddy mobile app offers personalized dashboards that display upcoming due dates, estimated tax liabilities, and payment history — making tax management organized and stress-free throughout the financial year.
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