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OLTAS - Online Tax Accounting System

OLTAS, which stands for Online Tax Accounting System, is a system used in the collection of direct taxes from relevant individuals, companies and organizations. It was launched collectively by the Central Board of Direct Taxes, Controller Of Accounts, Indian Banks Association and the Reserve Bank of India for the purpose of collecting information and maintaining records of direct taxes paid via banks through challans online. OLTAS allows taxpayers to track the status of their challans (or e-challan) deposited in banks online. OLTAS was introduced in April 2004 with following objectives:

  • Collection of direct taxes (online)

  • Accounting of direct taxes (online)

  • Reporting of payments and receipts of online direct taxes

Earlier, the direct taxes paid at the banks had to be manually collected and consolidated, which was quite a cumbersome process and prone to human errors. To minimize such incidents, banks have moved to the Online Tax Accounting System to speed up the process of collecting and assessing direct tax payments and to ensure that only accurate information is provided to the taxpayers.

Banks That Offer OLTAS Facility

The banking institutions offering the OLTAS facility to taxpayers are as follows:

  • Allahabad Bank
  • Andhra Bank
  • Axis Bank
  • HDFC Bank
  • ICICI Bank
  • IDBI Bank
  • Indian Bank
  • Indian Overseas Bank
  • Jammu & Kashmir Bank
  • Bank of Baroda
  • Bank of India
  • Bank of Maharashtra
  • Canara Bank
  • Central Bank of India
  • Corporation Bank
  • Dena Bank
  • Oriental Bank of Commerce
  • Punjab and Sind Bank
  • Punjab National Bank
  • UCO Bank
  • Union Bank of India
  • State Bank of India
  • Syndicate Bank
  • United Bank of India
  • Vijaya Bank

How Does OLTAS Work?

The Income Tax Department has devised specific file format for uploading tax payment data. Participating banks and their branches are expected to generate and upload tax data as per the format. After the file is prepared in accordance with the format, its structure can be verified for correctness using the File Validation Utility (FVU) provided by NSDL.

The taxpayer, as per OLTAS, has to use a common single copy challan for the following:

  • Challan Number ITNS 280 - For payment of income tax and corporate tax

  • Challan Number ITNS 281 - For TDS and TCS from corporates and non-corporates

  • Challan Number ITNS 282 - For payment of securities transaction tax, estate duty, wealth tax, hotel receipts tax, gift tax and other direct tax

  • Challan Number ITNS 283 - For payment of fringe benefits tax and banking cash transaction tax

  • Challan No. ITNS 285 for payment of equalization levy

  • Challan No. ITNS 286 for payment under Income Declaration Scheme, 2016.

  • Challan No. ITNS 287 for payment under Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY)

  • Form 26QB for depositing payment towards TDS on Sale of Property

  • Form 26QC for depositing payment towards TDS on Rent of Property

Payment Made Online (E-Payment)

Taxpayers who want to make the direct tax payments online through an authorized bank's e-payment portal can do so by following the below steps:

  • Step 1 – Click on the Direct Tax Payment option that you see on your bank’s webpage.

  • Step 2 – Select the relevant challan and fill in the necessary details, such as the Permanent Account Number/Tax Deduction Account Number and Assessment Year.

  • Step 3 – Submit the data entered. A confirmation screen will appear, mentioning the taxpayer's full name as per PAN.

  • Step 4 – Verify the details on the confirmation screen and click on 'submit', if the data mentioned is accurate.

  • Step 5 – The taxpayer will be routed to the bank’s website. To complete the payment, log in to net-banking or enter the details of the debit card.

  • Step 6 – Once the payment is processed, a challan counterfoil will appear, containing the Challan Identification Number (CIN), details of the payment made and name of the bank through which the e-payment has been made. This will serve as proof of tax payment.

Payment Made Through Banks

Taxpayers also have the option of visiting the any of the authorized banks and making the direct tax payments via the Online Tax Accounting System at the bank. Banks will accept payments made in cash or through a demand draft or cheque.

Before making the payment, the taxpayer will first need to fill up the challan and submit it to the bank. If the payment is made in cash, the bank will hand over a torn-off section of the challan that has been stamped by the bank. This section will mention the unique Challan Identification Number (CIN). If the payment is made by cheque or demand draft, the torn off section of the challan will only be provided after the payment is realized. However, the payment will be considered to have been made on the date of submission of the cheque or demand draft.

OLTAS Challan Status Enquiry

Challan Status Enquiry for Tax Payers – This facility allows taxpayers to check the status (online) of their challans deposited in banks. There are two modes of tracking the status - CIN based view and TAN based view.

i) CIN Based View

By entering the Challan Identification Number, the taxpayer will be able to view the following details:

  • Challan Serial Number

  • Major Head Code with description

  • TAN/PAN

  • Name of Tax Payer

  • BSR Code

  • Date of Deposit

  • Date of receipt by TIN

  • If amount (optional) is entered, then confirmation over whether the amount entered is correct

ii) TAN Based View

By entering TAN and Challan Tender Date range, the taxpayer will be able to view the following details:

  • CIN

  • Nature of Payment

  • Major Head Code with description

  • Minor Head Code

Challan Status Enquiry for Banks – Branches and nodal branches collecting tax can make use of this facility to check the status (online) of their challans deposited in banks via the following procedure:

a) Collecting Bank Branch - Branches collecting tax can access the following information by entering the major head code and branch scroll date:

  • Name of Taxpayer

  • Amount

  • Date of receipt by TIN

  • Challan Serial Number

  • Challan Tender Date

  • PAN/TAN

b) Nodal Bank Branch - Nodal branches collecting tax can access the following information by entering the major head code-description and nodal scroll date:

  • Nodal Branch Scroll Number

  • Scroll Date

  • Major Head Code - Description

  • Total Amount

  • Number of Branches

  • Number of Challans

For every Nodal Branch Scroll Number, following information can be viewed:

  • Total Amount

  • Number of Challans

  • Date of receipt by TIN

  • BSR Code

  • Branch Scroll Number

  • Branch Scroll Date

Benefits Of OLTAS

The benefits of OLTAS are as follows:

  • By replacing the old model, taxpayers now only have to fill a single challan instead of the earlier four challans.

  • Taxpayers immediately receive an acknowledgement for taxes paid (for payments made online and in cash at banks).

  • The acknowledgement counterfoil, containing the Challan Identification Number (CIN), serves as proof that payment is accounted for.

  • Information concerning the tax payments can be checked online by logging on to TIN-NSDL and entering the CIN.

  • Convenience of paying taxes from any place and any time through the online mode .

  • The acknowledgement counterfoil with the rubber stamp containing the Challan Identification Number (CIN) assures that the payment is properly accounted for.

FAQs for OLTAS

What is OLTAS?

OLTAS, which stands for Online Tax Accounting System, is a system used in the collection of direct taxes from relevant individuals, companies and organizations. It was launched by the Central Board of Direct Taxes, Controller Of Accounts, Indian Banks’ Association and the Reserve Bank of India for the purpose of collecting information and maintaining records of direct taxes paid via banks through challans online. OLTAS allows taxpayers to track the status of their challans (or e-challan) deposited in banks online.

What are the benefits of OLTAS?

The following are some of the benefits of OLTAS:

  • By replacing the old model, taxpayers now only have to fill a single challan instead of the earlier four challans.

  • Taxpayers immediately receive an acknowledgement for taxes paid (for payments made online and in cash at banks).

  • The acknowledgement counterfoil, containing the Challan Identification Number (CIN), serves as evidence that payment is accounted for.

  • Information concerning the taxpayer’s tax payments can be checked online by logging on to TIN-NSDL and entering the CIN.

  • Convenience of paying taxes from any place and any time through the online mode

  • The acknowledgement counterfoil with the rubber stamp containing the Challan Identification Number (CIN) assures that the payment is properly accounted for.

What is Challan Identification Number (CIN)?

Challan Identification Number (CIN) is a unique number comprising of the following information:

  • 7-digit BSR code of the bank branch where tax is deposited
  • Date of deposit
  • Serial number of Challan

What is TIN?

TIN, which stands for Tax Information Network, is an initiative by the Income Tax Department of India to manage information related to taxpayers' challans. It acts as a conduit between participating banks and the IT Department.

How to make direct tax payment at a bank?

Taxpayers can visit any of the authorized banks to make the direct tax payments via the Online Tax Accounting System at the bank. Banks will accept payments made in cash or through a demand draft or cheque.

Before making the payment, the taxpayer will first need to fill up the challan and submit it to the bank. If the payment is made in cash, the bank will hand over a torn-off section of the challan that has been stamped by the bank. This section will mention the unique Challan Identification Number (CIN). If the payment is made by cheque or demand draft, the torn off section of the challan will only be provided once the payment is realized. However, the payment will be considered to have been made on the date of submission of the cheque or demand draft.

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