OLTAS - Know The Features of Online Tax Accounting System

Manually collecting direct taxes from a country as diverse and populated as India used to be a time-consuming, error-prone, and confusing process not only for the taxpayers but also for the tax authorities, and even banks that used to collect direct taxes.Thus, in June 2004, the Reserve Bank of India (RBI), Indian Banks Association (IBA), the Controller of Accounts, and the Central Board of Direct Taxes (CBDT) collectively launched Online Tax Accounting System (OLTAS).

OLTAS is an online system for banks to collect, account, and report payments and receipts of direct taxes paid by individuals, companies, and organizations. The National Securities Depository Limited (NSDL) maintains a Tax Information Network (TIN) for managing information and data of challans between banks and tax authorities.It is through this TIN that the banks can access data regarding the taxpayers. Apart from visiting branches of banks that are eligible to collect direct taxes, a taxpayer can also visit the NSDL TIN website to make direct tax payments.

Here are some of the top features of OLTAS-

• OLTAS decreased the total number of challans that were previously available for direct tax payment. For instance, a common Challan ITNS 281 can be used for depositing TCS and TDS. Similarly, Challan ITNS 280 can be used for paying corporate taxes and regular income tax.
• Taxpayers receive an instant tax payment proof in the form of CIN (Challan Identification Number). The CIN can then be used at the time of filing ITR.
• Taxpayers can access detailed information about the taxes they have paid online anytime by visiting the official NSDL TIN website.

Here are the detailed steps you should follow-

• Visit the NSDL Tin website at https://www.tin-nsdl.com/ and look for the "Services" drop-down menu
• Select "e-Payment: Pay Taxes Online."
• Select the relevant OLTAS challan, and you will then be redirected to a tax payment form
• Select between "(0020) Corporation Tax" and "(0021) Income Tax"
• Now enter the Assessment Year, PAN, and Address
• Select Type of Payment between "(100) Advance Tax", "(300) Self Assessment Tax", "(106) Tax on Distributed Profits", etc.
• Select the Mode of Payment
• Enter the captcha and click  "Submit."
• You will then be redirected to the online portal of the payment mode selected
• Upon successful payment, you will receive the CIN on your screen

In case if you have paid more direct taxes than you were supposed to, you will then be eligible to receive a refund from the tax department. Currently, the State Bank of India is the only bank authorized to receive OLTAS refunds.After processing the ITR , the State Bank of India receives details of the taxpayers eligible for refunds. Based on the details, taxpayers will get a refund through a cheque. Alternatively, the refund can also be directly credited into the bank account of the taxpayer.You can also visit this portal to check the status of your OLTAS refunds.

The introduction of OLTAS has made direct tax payment easy, fast, and more accurate for all the stakeholders.Taxpayers should consult a tax professional if this is the first time that they will be using OLTAS for online/offline tax payment. This will help ensure accuracy and protect you from making mistakes that could result in defaults and penalties.Ready to make the most of your money? Start your tax planning journey now!

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.