How to File ITR after Challan Payment? Check this step-by-step guide

ITR filing remains a significant activity for Indian taxpayers and challan payment is a key process in this. Usually payment of tax via challan comes as part of this process. While paying tax via challan, it is important to subsequently file the ITR in the right way in order to avoid any penalty and maintain legal compliance. Let's go through the steps in filing ITR after challan payment to guide taxpayers through the process easily.

ALSO READ | 8th Pay Commission: Overview and Probable Timeline

Understanding Challan Payment

A challan is a receipt that is produced when a taxpayer makes an advance tax, self-assessment tax, or normal tax payment to the government. The taxpayer can make this payment online using the Income Tax Department's e-filing portal or offline in case of banks that have been authorized by the government. The taxpayer gets a Challan Receipt with a Challan Identification Number (CIN), Bank Serial Number (BSR), and Date of Payment upon successful payment. This receipt is crucial for filing ITR since it serves as a proof of tax payment.

Payment of Tax Through Challan

Taxpayers can make a fresh challan on the Income Tax e-Filing portal by logging in through their credentials, choosing the relevant type of tax payment, and providing the tax information including assessment year, type of tax, and amount. Payment is enabled through net banking, debit/credit cards, UPI, or through bank counters through cash or cheque. On successful payment, taxpayers receive an email and SMS with payment details.

ALSO READ | How is Gold Price Determined in India Daily? Find Out..

What Next: Filing ITR After Challan Payment

Following tax payment, taxpayers have to file their ITR with the challan payment details so that they can take credit of the paid taxes to prevent notices regarding dues of tax. 

The steps involved are:

• Login to Income Tax e-Filing portal with User ID and password.
• Choose the correct ITR form depending on income sources.
• Enter personal and income details carefully.
• Enter the challan payment details like CIN, BSR code, and payment date in the respective tax payment section or schedule in the ITR form.
• Cross-check all the details.
• E-file the ITR.
• Proceed with the return verification process through e-verification modes such as Aadhaar OTP, net banking, or by mailing a physically signed ITR-V to the Centralized Processing Centre (CPC).

Key Points to Remember

• Always save and hold a copy of the challan receipt to check in future.
• Verify tax payment information entered in the ITR to prevent mismatches with Income Tax Department records.
• Wherever taxes are paid after filing the ITR (as per choosing "Pay Later"), revised return filing or rectification might be necessary.
• Not declaring paid taxes could result in interest or penalty.

ALSO READ | ITR: Here's how Online Gamers are to File Their Income Tax Returns..

Summary

ITR filing after challan payment is a simple process if tax payers stick to the proper steps carefully. Providing accurate details of payment in the return facilitates easy credit of payments made, thereby precluding any unwanted legal issues. Using the online portal of the Income Tax Department provides an easy, transparent, and efficient means to discharge one's tax liability while getting timely acknowledgments on payments and filings.