OLTAS System

Definition:

OLTAS refers to On-line Tax Accounting System (OLTAS) for Direct Taxes. Please note that direct taxes include the Income Tax and Corporate Taxes, which are directly levied from the concerned people and organizations.

Background:

OLTAS was introduced in April, 2004 for collection, accounting and reporting of the 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.

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 on Companies (Corporation Tax) and Income Tax (other than Companies).

• Challan No. ITNS 281 for depositing Tax Deducted at Source/Tax collected at source (TDS/TCS). It has two major Heads i.e. (a) 0020 for company deductees and (b) 0021 for non-company deductees.

• Challan No. ITNS 282 for payment of Hotel Receipts Tax, Gift-Tax, Estate Duty, Expenditure Tax, Wealth Tax, Securities Transaction Tax and Other miscellaneous direct taxes.

A tax payer 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). CIN is a unique number containing the following information:

• 7 digits BSR Code of the bank branch where tax is deposited

• Date of presentation of the challan (DD/MM/YY)

• Serial number of Challan in that branch on that day (5 digits)

The CIN has to be quoted in the Income Tax Return as a proof of payment. CIN is also to be quoted in any further enquiry if any. The Challans are available on the website http://www.incometaxindia.gov.in. Challans are also available at the local Income Tax Offices and also with private vendors.

How payment of Taxes can be done 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 a 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 realisation of the cheque/demand draft but tax shall be deemed to have been paid on the date of tender.

What are benefits of OLTAS System?

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 http://tinnsdl.com and typing the unique CIN given by the bank. (For more details please visit NSDL Home page www.nsdl.co.in). 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.