940. Selection of appropriate challan for payment of direct taxes and its proper filling up by taxpayer
Circular No. 232 was issued by the Central Board of Direct Taxes on 26 November 1977. Its subject is 940. Selection of appropriate challan for payment of direct taxes and its proper filling up by taxpayer.
Tells taxpayers which challan to use for each direct tax payment and how to fill it in. Because credit is given on the counterfoil received by the Income-tax Officer from the authorised bank, and counterfoils with illegible or incomplete particulars do not reach the right officer, each counterfoil must carry the taxpayer's full name, complete address, permanent account number where allotted, the assessment year and the ward or circle where he is assessed or assessable. It then lists the challan forms then in use: for income-tax other than corporation tax, ITNS 35 for advance tax, ITNS 39 for tax deducted at source, ITNS 191 for tax deducted from salaries, ITNS 166A for self-assessment, ITNS 38 for regular assessment and ITNS 127 for interest; for corporation tax, ITNS 35A, ITNS 39A, ITNS 166, ITNS 38A and ITNS 127; for wealth-tax, WTNS 18 and WTNS 4; for gift-tax, GT 6 and GT 16; and for estate duty, ED 24. Interest tax then had no challan of its own, and the income-tax or corporation tax challan was to be used after scoring out the major head and substituting the interest tax head. It also directs that surcharge be correctly computed and shown separately in the space provided.
It had been noticed that challans went astray because particulars were incomplete or illegible, that the wrong challan form was sometimes used, and that surcharge was often not shown or not shown correctly.
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.
2. 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
Wealth-tax
l. Self-assessment
WTNS
18
m. Regular and provisional assessments
WTNS
4
Gift-tax
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.
When a payment does not appear against the assessee's account and the challan has to be traced from the bank counterfoil.
Source: the Income Tax Department’s own published text — its page for this instrument.