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Annu.R (CA,CS,B.Com)     11 September 2011

Faq--on-line tax accounting system (oltas) for direct taxes


On-line Tax Accounting System (OLTAS) for Direct Taxes

9. What is OLTAS?

It is a system introduced in April, 2004 for collection, accounting and reporting receipts and payments of Direct Taxes on-line through a network of bank branches. The tax payers data flow from banks directly to Tax Information Network (TIN) maintained by National Securities Depository Ltd.

10. What are the major changes envisaged?

Under OLTAS, only a Single Copy Challan is used with a tear off portion for the Tax Payer. The three new single copy Challan in use are as under:
A common single copy Challan No. ITNS 280 for payment of Income Tax, Corporation Tax and Wealth Tax; Challan No. ITNS 281 for depositing Tax Deducted at Source/Tax collected at source (TDS/TCS) from corporates or non-corporates; Challan No.ITNS 282 for payment of Hotel Receipts Tax, Gift-Tax, Estate Duty, Expenditure Tax, Wealth Tax and Other miscellaneous direct taxes;Challan No. ITNS 283 for payment of Banking Cash Transaction Tax and Fringe Benefits Tax.

11. Does a tax-payer get his copy of the challan?

No. He only gets the tear-off portion from the challan from the bank after getting it duly stamped by the bank with a unique Challan Identification Number (CIN).

12. What is CIN?

It is Challan Identification Number. It is unique number containing the following information.
(i) 7 digits BSR Code of the bank branch where tax is deposited
(ii) Date of Deposit (DD/MM/YY) of tax
(iii) Serial number of Challan
The CIN has to be quoted in Return of Income as a proof of payment. CIN is also to be quoted in any further enquiry.

13. How to obtain the new Challans?

The Challans are available on the website Challans are also available at the local Income Tax Offices and also with private vendors.

14. What would happen if the acknowledgement counterfoil is misplaced?

Approach the bank where tax was deposited. The branch will issue a certificate after following certain procedures which contains payment particulars including CIN.

15. Can the Tax payer make direct/indirect taxes through internet?

Yes. Some banks are providing the facility to their customers.

16. Where can a tax-payer get the detailed procedure on OLTAS?

Please visit https://www/

17. What is the new procedure for payment of direct taxes at banks?

The authorised bank branches accept Direct Taxes by cash or cheque/demand draft drawn on the same branch or on other banks/branches with Single Challan. The bank immediately returns the tear off portion of the challan duly stamped with an unique Challan Identification Number (CIN) when the payment is made in cash. In the case of challans presented with cheque/demand draft drawn on other banks/branches, tear-off portion of the challan will be released to the tax-payer only after the realiasation of the cheque/demand draft but tax shall be deemed to be paid as on the date of tender.

18. How does the new system benefit the taxpayer?

The new system is of immense benefit to the common taxpayer. Now a single copy simplified Challan has to be filled up replacing the earlier quadruplicate Challan. Secondly, it would be possible to obtain an acknowledgement for taxes paid at your own bank branch immediately. Further, the acknowledgement counterfoil with the rubber stamp containing the Challan Identification Number (CIN) assures that the payment is properly accounted for. The Tax payer can view the details of tax paid by him by logging on to and typing the unique CIN given by the bank. (For more details please visit NSDL Home page Tax-payer is no longer required to attach copies/acknowledgement of challan with the Return. He should only mention the CIN details in the Income-tax Returns.

19. Can the tax-payer still use the old forms?

No. Tax is accepted only with new prescribed challan forms.

 1 Replies


Prakash (Chartered Accountant)     11 September 2011

You would have re numbered Questions!! :P

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