940. Selection of appropriate challan for payment of direct taxes and its proper filling up by taxpayer

1. Challans for the payment of (a) advance tax, (b ) tax deducted at source, and (c) self-assessment tax are filled in by the taxpayers or their representatives without getting them signed by the Income-tax Officers. The credit for the payment of tax is given on the basis of the counterfoil of the challan received by the Income-tax Officer from the authorised public sector bank where the payment is made by taxpayer. It has been noticed that in some cases the challans do not find their way to the respec­tive Income-tax Officer because the address and other particulars are incomplete or they are not legibly written on the challans. In such cases, it becomes difficult to give credit to the taxpay­ers for the tax paid by them resulting in unnecessary inconven­ience to them. It is, therefore, necessary that each counterfoil of the challan should contain the taxpayer’s full name, complete address and the Permanent Account Number (where allotted), as­sessment year, Income-tax Officer’s ward or circle where the taxpayer is assessed or is assessable, etc.

  1. It has also been observed that sometimes a wrong challan is used for making a particular type of payment. In this connection a list of the challan forms currently in use with the number printed on each form is given below:

Income-tax [other than corporation tax]

a. Advance tax ITNS 35
b. Tax deducted at source ITNS 39
c. Tax deducted at source from salaries ITNS 191
d. Self-assessment ITNS 166A
e. Regular assessment ITNS 38
f. Interest ITNS 127
Corporation tax [tax on the income of a company]    
g. Advance tax ITNS 35A
h. Tax deducted at source ITNS 39A
i. Self-assessment ITNS 166
j. Regular assessment ITNS 38A
k. Interest ITNS 127
l. Self-assessment WTNS 18
m. Regular and provisional assessments WTNS 4
n. Advance payment GT 6
o. Regular assessment GT 16
Estate duty    
p. Regular and provisional assessments ED 24
Interest tax    

q.   No separate challans are at present provided. The challans meant for the payment of income-tax/corporation tax are to be used for payment of interest tax as well after scoring out the existing major head of account and substituting it by the head of account “Interest tax – Central Government 028 – Other tax on Income and Expenditure”. A new challan form for interest-tax is being designed and will be brought into use shortly.

3. It is requested that while making payments, the correct challan form should be used by the taxpayer so that correct classification may be possible in the departmental records. In case there is any difficulty in getting the correct challan form, the nearest Income-tax Officer or the Public Relation Officer in the Income-tax Department may be contacted in the matter.

4. Another point that needs attention is about the correct compu­tation of surcharge on income-tax. The amount of surcharge has to be shown separately in the challans. It has been noticed that, in some cases, the surcharge is not shown at all or is not correctly shown on the relevant challans. For proper classification in accounts, it is essential that while filling the amount of tax payable in the challan form, the component of surcharge should be correctly worked out and shown separately in the challan in the space meant for the purpose.

5. The Chambers of Commerce, etc., are requested to bring the contents of this circular to the notice of their members/constituents for compliance so that any inconvenience at a later stage to the taxpayers in getting the credit for the amount of tax paid by them is eliminated and proper account classification of the taxes paid is achieved.

Circular: No. 232 [F. No. 385/79/77-IT(B)], dated 26-11-1977

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