Online Tax Accounting System: Review

To check that the procedures involved in Online Tax Accounting System have proceeded smoothly, a selection of authoritative bodies were assigned to co-operate as a network.

The bodies include:

• The Central Board of Direct Taxes.
• The Indian Banks Association.
• The Controller of Accounts.
• The Reserve Bank of India.

The main objectives behind the launch of OLTAS in India

The government initiated Online Tax Accounting System in India for the following reasons:

• To gather all the direct taxes online.
• For maintaining an account of every direct tax transactions made online.
• Making reports of payments and storing the receipts of the direct taxes paid.
• To smoothen Tax Accounting procedures between the authorized banks and their branches.

How have OLTAS benefited Taxpayers?

OLTAS has been highly beneficial for the common taxpayers, as it has simplified things where one needs to fill just a single Challan (official receipt or invoice) instead of the four-part Challan filling system. OLTAS has also made it possible for taxpayers to obtain verifications at one’s own branch of a bank within the very instant, upon the payment of tax.

The taxpayer can also be assured if the payment made has been accounted for, once they receive the acknowledgment counterfoil, stamped with a Challan Identification Number (CIN). Through OLTAS one can also view all the details of taxes paid, by simply visiting www.tin-nsdl.com and entering the unique CIN assigned by the bank. Taxpayers are no longer required to attach copies/acknowledgment of challan with the Income Tax Return as he/she will simply be required to produce the CIN details.

The Functions of OLTAS

The Income Tax Department of India has introduced a specific file format, regarding the uploading of tax payment data. It is mandatory for every participating bank and their branches to utilize this specified format while generating and transferring any information or data related to tax.

As per the directives of OLTAS, a taxpayer will use only a single copy of a common challan for the following:

• Challan Number ITNS 280 is for corporate taxes as well as for regular income tax.
• Challan Number ITNS 281 is required for depositing all TDS and TCS.
• Challan Number ITNS 282 is required for paying the following taxes:
  • Gift Tax
  • Wealth Tax
  • Hotel Receipts Tax
  • Estate Duty
  • Securities Transaction Tax
  • Expenditure Tax
  • Any other direct tax
• Challan Number ITNS 283 is required for any tax related to fringe benefits or banking cash transactions.

After the bank has stamped the challan, the taxpayer will receive its counterfoil containing a unique Challan Identification Number (CIN).

What is a Challan Identification Number?

The elements that make up CIN are:

• Challan consists of a 7 digit number (bank BSR Code). This code is related to the bank where the taxpayer has made the tax deposit.
• The date the challan was presented.
• A 5 digit serial number assigned to the taxpayer by the bank on that particular day.

The taxpayer must provide his/her CIN with the Income Tax Return as proof of the payment of tax.

OLTAS Challan Status Enquiry

Taxpayers are provided with a facility through which they can easily check online for details regarding the status of their challan with the assistance of the Tax Information Network (TIN). This facility offers secured tax payments with a confirmation that all tax payments are verified under the name of the taxpayer.

Search Tools for Taxpayers to check the Status of their Challans Online

CIN based View:

On entering a unique Challan Identification Number (BSR Code of Collecting Branch, Challan Tender Date and Challan Serial Number) and amount (which is optional),

A taxpayer can view the following details:

• BSR Code
• Date of Deposit
• Challan Serial Number
• Major Head Code with description
• TAN / PAN
• Name of the Tax Payer
• Date of receipt by TIN
• Confirmation that the amount entered is correct

TAN based View:

If a taxpayer can produce a TAN along with the date of which the challan was given out by the bank, then he/she can access the following information:

• CIN
• Major Head Code with description
• Minor Head Code
• Nature of Payment