Introduction
Income tax payment looks simple, but one wrong selection in the challan can create unnecessary problems.
Many taxpayers make mistakes while selecting:
- Income-tax Act, 1961 vs Income-tax Act, 2025;
- Assessment Year vs Tax Year;
- Advance Tax vs Self-Assessment Tax;
- Minor Head;
- BSR code;
- challan serial number;
- payment amount.
Sometimes, the bank account is debited but the challan is not generated immediately. Sometimes, payment is made under the wrong Act or wrong year. Sometimes, the payment does not auto-reflect in ITR.
This article explains how to pay income tax challan correctly, how advance tax and self-assessment tax differ, how challan correction works, and what to do if the challan is not visible after payment.
For ITR filing, tax payment support and notice assistance, visit TaxClear.in.
What Is an Income Tax Challan?
An income tax challan is the payment record generated when a taxpayer pays tax to the government.
It may be used for:
- advance tax;
- self-assessment tax;
- regular assessment demand;
- TDS/TCS-related payments;
- other direct tax payments.
After payment, the challan receipt contains important details such as:
- Challan Identification Number, or CIN;
- BSR code;
- challan serial number;
- date of payment;
- amount paid;
- tax type;
- assessment year or tax year;
- minor head.
These details are required while filing ITR if the payment does not auto-reflect.
Best Way to Pay Self-Assessment Tax While Filing ITR
The safest practical method is to pay tax from inside the ITR filing flow.
When you fill your ITR and reach the final tax computation section, the portal shows tax payable. If tax is payable, the portal generally gives a Pay Now option.
This method reduces mistakes because the portal usually picks:
- correct assessment year;
- correct tax type;
- correct payment category;
- correct amount of tax payable.
After payment, the challan details must be checked and added under the “Taxes Paid” schedule if not auto-populated.
Advance Tax vs Self-Assessment Tax
This is the most common confusion.
| Point | Advance Tax | Self-Assessment Tax |
|---|---|---|
| Paid when | During the same year in which income is earned | |
| Paid for | Current year estimated tax | |
| Common minor head | 100 | |
| Purpose | Avoid interest for non-payment/deferment | |
| Example | Tax Year 2026-27 advance tax paid during 2026-27 | |
| Self-assessment tax | Paid after year-end before filing ITR | |
| Common minor head | 300 | |
| Purpose | Pay final balance tax before submitting return | |
| Example | AY 2026-27 tax paid before filing FY 2025-26 ITR |
Which Act Should You Select?
From 2026 onwards, challan selection requires extra care because the Income-tax Act, 2025 applies for Tax Year 2026-27 onwards, while earlier assessment years continue under the Income-tax Act, 1961.
| Payment Type | Correct Act Selection |
|---|---|
| Self-assessment tax for AY 2026-27 / FY 2025-26 | Income-tax Act, 1961 |
| Tax payment for AY 2026-27 or prior years | Income-tax Act, 1961 |
| Advance tax for Tax Year 2026-27 | Income-tax Act, 2025 |
| Tax payments for TY 2026-27 onwards | Income-tax Act, 2025 |
This distinction is very important.
If you are filing the return for FY 2025-26 / AY 2026-27, self-assessment tax should be paid under the Income-tax Act, 1961.
If you are paying advance tax for Tax Year 2026-27, select Income-tax Act, 2025.
Assessment Year vs Tax Year
| Term | Meaning |
|---|---|
| Assessment Year | Used under Income-tax Act, 1961 |
| Tax Year | Used under Income-tax Act, 2025 |
| AY 2026-27 | For income earned during FY 2025-26 |
| TY 2026-27 | For income earned during 1 April 2026 to 31 March 2027 |
Under the 1961 Act, challans are based on Assessment Year. Under the 2025 Act, challans are based on Tax Year.
How to Pay Advance Tax Online
Step 1: Login to Income Tax Portal
Login using PAN/Aadhaar and password.
Step 2: Go to e-File > e-Pay Tax
Open the e-Pay Tax section.
Step 3: Select Income-tax Act, 2025
For advance tax of Tax Year 2026-27, select Income-tax Act, 2025.
Step 4: Click New Payment
Choose the Income Tax tile.
Step 5: Select Tax Year and Minor Head
| Field | Selection |
|---|---|
| Tax Year | 2026-27 |
| Type of Payment / Minor Head | 100 – Advance Tax |
| Tax type | Income Tax / Corporation Tax as applicable |
Step 6: Enter Tax Amount
Enter the amount you want to pay.
Step 7: Select Payment Mode
Common payment modes include:
- net banking;
- debit card;
- credit card;
- UPI;
- payment gateway;
- RTGS/NEFT;
- pay at bank counter, where available.
Step 8: Download Challan Receipt
After successful payment, download and save the challan receipt.
How to Pay Self-Assessment Tax Online
Self-assessment tax is paid after final computation of tax payable while filing ITR.
Step 1: Fill ITR First
Complete all schedules and reach the final tax payable section.
Step 2: Use Pay Now Option
Use the portal’s Pay Now option if available.
Step 3: Select Correct Act
For AY 2026-27 / FY 2025-26, select Income-tax Act, 1961.
Step 4: Select Minor Head
| Field | Selection |
|---|---|
| Assessment Year | 2026-27 |
| Minor Head | 300 – Self-Assessment Tax |
Step 5: Pay and Download Challan
After payment, save the receipt and verify whether it is auto-populated in ITR.
Minor Head Codes
| Minor Head | Meaning |
|---|---|
| 100 | Advance Tax |
| 300 | Self-Assessment Tax |
| 400 | Demand Payment as Regular Assessment Tax |
Selecting the wrong minor head can create mismatch and credit problems.
What Details Are Needed from Challan?
If challan details do not auto-populate in ITR, manually enter:
| Detail | Where Found |
|---|---|
| BSR Code | Challan receipt |
| Date of payment | Challan receipt |
| Challan serial number | Challan receipt |
| Amount | Challan receipt |
| Tax type | Challan receipt |
| Assessment Year / Tax Year | Challan receipt |
Ensure that all details match exactly. Even one digit mismatch can create a tax demand.
Where to Enter Challan Details in ITR
In ITR, go to:
Taxes Paid → Advance Tax and Self-Assessment Tax
If challan is not auto-filled, add it manually.
Enter:
- BSR code;
- date of deposit;
- challan serial number;
- amount paid.
Then confirm the schedule and check whether final tax payable becomes nil or reduces correctly.
What If Payment Is Debited but Challan Is Not Generated?
This is common.
Sometimes payment is debited from the bank account but the e-filing portal still shows status like:
- Initiated;
- No Response from Bank;
- Awaiting Bank Confirmation;
- Payment Not Updated.
In such cases, do not panic.
Practical Action Plan
| Situation | What to Do |
|---|---|
| Payment debited but challan not visible | Wait and re-check status |
| Status shows “Initiated” | Check Generated Challans/Payment History |
| Status shows “No Response from Bank” | Wait for portal-bank reconciliation |
| Not updated after reasonable time | Contact bank/payment gateway |
| Payment failed but amount debited | Contact bank |
| Challan later appears | Download receipt and enter details in ITR |
Do not make duplicate payment immediately unless you have verified the status.
Where to Check Payment Status
Check in:
e-File → e-Pay Tax → Payment History / Generated Challans
You may also later check:
- AIS;
- tax payment schedule;
- Form 26AS/Form 168, where applicable.
Payment may take some time to reflect in AIS or payment history.
Should You Use Dummy Challan Details?
Some taxpayers use “dummy challan” details on the last date when tax has been debited but challan is not generated.
This is risky.
TaxClear’s safer view:
Do not enter fake or dummy challan details unless there is a genuine last-date emergency and you are ready to immediately revise the ITR with correct challan details once the actual challan is generated.
Wrong challan details can create:
- tax demand;
- mismatch;
- defective return risk;
- need for revised return;
- interest/late fee issues.
The safer approach is to wait for the actual CIN/challan receipt wherever possible.
Challan Correction: What Can Be Corrected Online?
The e-filing portal allows online challan correction for limited items and within prescribed time limits.
| Correction Type | Online Time Limit |
|---|---|
| Change in Assessment Year / Tax Year | Within 7 days of challan deposit date |
| Change in Minor Head | Within 30 days of challan deposit date |
| Change in Major Head | Within 30 days of challan deposit date |
Online correction is generally allowed only once for a submitted challan.
Online Challan Correction Process
Step 1: Login to Income Tax Portal
Login with your user ID and password.
Step 2: Go to Services
Select:
Services → Challan Correction
Step 3: Create Challan Correction Request
Click the option to create a new challan correction request.
Step 4: Select Correction Attribute
Choose the relevant correction type, such as:
- Assessment Year / Tax Year;
- Major Head;
- Minor Head.
Step 5: Select Challan
Select the challan from available unconsumed challans.
Step 6: Submit and E-Verify
Submit the request and complete e-verification if required.
What If Wrong Act Was Selected?
This is a serious mistake.
Example:
- You had to pay self-assessment tax for AY 2026-27 under Income-tax Act, 1961.
- But you selected Income-tax Act, 2025 and paid under Tax Year 2026-27.
The portal may not allow simple online conversion from one Act framework to another in many such cases.
In such cases, you may need to approach your Jurisdictional Assessing Officer, or JAO, with an offline correction request.
How to Find Your Jurisdictional Assessing Officer
Use the “Know Your JAO” service on the Income Tax portal.
You generally need:
- PAN;
- valid mobile number;
- OTP validation.
After validation, the portal shows details such as:
- area code;
- AO type;
- range code;
- AO number;
- jurisdiction;
- JAO address;
- email ID.
Offline Challan Correction Through JAO
If online correction is not possible, prepare a written application to the JAO.
Attach:
| Document | Purpose |
|---|---|
| Application letter | Request correction |
| Challan receipt | Proof of payment |
| PAN copy | Identity |
| ITR computation | Shows correct tax payment purpose |
| Wrong challan details | What was selected incorrectly |
| Correct challan details | What should be corrected |
| JAO details | Jurisdiction reference |
| Bank debit proof | If needed |
Sample Challan Correction Application Format
To,
The Jurisdictional Assessing Officer
Income Tax Department
Subject: Request for correction of income tax challan
Respected Sir/Madam,
I request correction of the following income tax challan, as the payment was made under an incorrect selection.
| Particulars | Incorrect Details | Correct Details |
|---|---|---|
| Act selected | Income-tax Act, 2025 | Income-tax Act, 1961 |
| Tax period | Tax Year 2026-27 | Assessment Year 2026-27 |
| Payment type | As per challan | Self-Assessment Tax / Advance Tax, as applicable |
| CIN/Challan No. | [Insert] | [Insert] |
| Date of payment | [Insert] | [Insert] |
| Amount | ₹[Insert] | ₹[Insert] |
I request you to kindly correct the challan record so that the payment is correctly reflected against my PAN and applicable assessment/tax year.
I am attaching the challan receipt, PAN copy, bank debit proof and computation for your reference.
Thank you.
Name:
PAN:
Mobile:
Email:
Signature:
What If Challan Does Not Auto-Reflect in ITR?
If challan does not auto-reflect, you can manually enter the challan details.
Before entering manually, verify:
- challan receipt;
- BSR code;
- challan serial number;
- date of payment;
- amount;
- assessment year/tax year;
- minor head.
After entering, check the final tax payable schedule.
Common Challan Mistakes
| Mistake | Risk |
|---|---|
| Selecting Income-tax Act, 2025 instead of 1961 | Payment mismatch |
| Selecting AY instead of TY or vice versa | Wrong credit |
| Selecting Advance Tax instead of Self-Assessment Tax | Wrong minor head |
| Selecting wrong Assessment Year | Tax demand |
| Wrong BSR code | Challan not matched |
| Wrong challan serial number | Demand notice |
| Wrong date of deposit | Mismatch |
| Wrong amount | Credit mismatch |
| Duplicate payment | Refund process needed |
| Not downloading receipt | Difficulty in ITR filing |
Difference Between Payment History and Generated Challans
| Section | Meaning |
|---|---|
| Generated Challans | Challans created, but payment may or may not be completed |
| Payment History | Successfully paid challans |
| Initiated status | Payment started but final confirmation pending |
| Paid status | Payment completed |
| Expired status | CRN not used within validity period |
Always download the final challan receipt after status becomes paid.
If Duplicate Payment Is Made
If you accidentally pay tax twice:
- do not panic;
- use the correct challan in ITR;
- claim credit/refund as per correct payment;
- keep both receipts;
- do not hide duplicate payment;
- reconcile in Form 26AS/AIS/tax credit statement.
Refund may be processed through ITR, depending on facts.
Checklist Before Paying Income Tax Challan
Before clicking Pay Now, check:
| Checkpoint | Confirm |
|---|---|
| Correct Act selected | 1961 or 2025 |
| Correct Assessment Year / Tax Year | Yes |
| Correct minor head | 100 / 300 / 400 |
| Correct PAN | Yes |
| Correct tax type | Income tax / corporation tax |
| Correct amount | Yes |
| Payment mode selected | Yes |
| Bank/payment gateway working | Yes |
| Challan downloaded | Yes |
| ITR tax-paid schedule updated | Yes |
TaxClear View
The most important challan mistake in 2026 is selecting the wrong Act.
Remember:
- AY 2026-27 self-assessment tax = Income-tax Act, 1961;
- TY 2026-27 advance tax = Income-tax Act, 2025.
For self-assessment tax, the safest practical route is to pay from inside the ITR filing flow because the portal usually picks the correct year and tax category.
For advance tax, use e-Pay Tax and choose the correct Act, tax year and minor head.
If a payment is debited but challan is not generated, wait for reconciliation and avoid duplicate payment unless the bank/portal confirms failure.
For challan correction, act quickly because online correction windows are limited.
Key Takeaways
- Advance tax and self-assessment tax are different.
- Advance tax is generally paid during the tax year.
- Self-assessment tax is paid before filing ITR after final tax computation.
- For AY 2026-27 self-assessment tax, select Income-tax Act, 1961.
- For TY 2026-27 advance tax, select Income-tax Act, 2025.
- Minor Head 100 is for advance tax.
- Minor Head 300 is for self-assessment tax.
- Minor Head 400 is for regular assessment demand.
- If payment is debited but challan is pending, check Generated Challans and Payment History.
- If bank response is pending, wait for reconciliation before duplicate payment.
- Online challan correction has strict time limits.
- Wrong Act selection may require offline correction through JAO.
- Enter BSR code, challan serial number, date and amount correctly in ITR.
Conclusion
Income tax challan payment should be done carefully because wrong Act, wrong year or wrong minor head can create mismatch and demand.
For ITR self-assessment tax, use the Pay Now option inside the ITR filing flow where possible. For advance tax, use e-Pay Tax and select the correct tax year and minor head.
If a challan mistake happens, check whether online challan correction is available. If not, approach the Jurisdictional Assessing Officer with a proper correction application.
For income tax challan payment, ITR filing, challan correction and notice support, visit TaxClear.in.
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