Income Tax Dept Issues Guidance on New ITNS 280N and ITNS 281N Challans

The Income Tax Department has issued detailed guidance and FAQs on the newly introduced ITNS 280N and ITNS 281N challans, which will be used for specified tax payments under the Income Tax Act, 2025 from Tax Year 2026–27 onwards. The Department has also clarified that payments relating to the Income-tax Act, 1961 will continue to use the existing challan forms applicable under that law.

ITNS 280N for Income Tax and Corporation Tax Payments

According to the guidance, ITNS 280N is intended for various income-tax and corporation-tax payments under the Income Tax Act, 2025. It covers payments such as:

• Advance Tax;
• Self-Assessment Tax;
• Tax on Regular Assessment;
• Secondary Adjustment Tax;
• Accretion Tax;
• fee for delay in linking PAN with Aadhaar;
• specified late fees;
• appeal fees; and
• compounding charges.

The challan covers the major heads Corporation Tax (0020) and Income Tax other than Companies (0021), along with relevant minor heads such as Advance Tax (100), Self-Assessment Tax (300), Regular Assessment Tax (400), Secondary Adjustment Tax (110), Accretion Tax (111) and Other Receipts (500).

The Department has clarified that a separate ITNS 280N challan must be generated for each minor head. Therefore, Advance Tax and Self-Assessment Tax, for example, cannot be paid together through a single challan.

Payments under Minor Head 500, including appeal fees, certain late fees, PAN-Aadhaar linking fees and compounding charges, are required to be routed through the prescribed “Other Receipts” payment flow, with the amount entered under the appropriate tax break-up field.

ITNS 281N for TDS and TCS Payments

The Department has separately issued FAQs on ITNS 281N, which will be used for payment of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) under the Income Tax Act, 2025. The new challan is applicable for payments from Tax Year 2026–27 onwards. Payments governed by the Income-tax Act, 1961 will continue through the existing ITNS 281 challan.

ITNS 281N covers the major heads:

• Corporation Tax (0020); and
• Income Tax other than Companies (0021).

The covered minor heads include:

• TDS/TCS Payable by Taxpayer (200);
• TDS/TCS Regular Assessment (400);
• Other Receipts (500); and
• Payment against PAN-based TDS Demand (800).

Multiple Section Codes Allowed in One ITNS 281N Challan

A significant procedural feature is that, under Minor Head 200, a taxpayer may use one ITNS 281N challan for payments relating to multiple section codes, subject to a maximum of 20 section codes per challan. A separate challan will be required where the number of section codes exceeds this limit.

However, the Department has clarified that separate challans must be used for:

• resident and non-resident deductees; and
• company and other-than-company deductees.

Tax Year to Replace Assessment Year for New Act Payments

The Income Tax Department's user manual explains an important transition point: challans under the Income-tax Act, 1961 are based on the Assessment Year, whereas payment challans under the Income Tax Act, 2025 are to be generated with reference to the Tax Year. Taxpayers must therefore select the correct Act and relevant tax period before generating the challan.

For instance, the Department's manual states that the Income-tax Act, 1961 option should be selected for payments relating to Assessment Year 2026–27 and earlier years, including Self-Assessment Tax for AY 2026–27, while the Income Tax Act, 2025 option applies for Tax Year 2026–27 onwards.

How to Access the New Challans

The new challan payment flows are available through the Income Tax e-Filing portal. ITNS 280N can be accessed through PAN-based e-Pay Tax services, while ITNS 281N is available for TDS/TCS payments through the TAN-based payment workflow. Both pre-login and post-login payment routes are provided, subject to the applicable challan and payment type.

Why the Guidance Matters

The new guidance is significant for taxpayers, deductors, employers, companies and tax professionals because the payment architecture under the Income Tax Act, 2025 introduces new challan forms and a Tax Year-based payment framework. Taxpayers will need to carefully select the correct Act, challan, payment head and tax period to avoid incorrect tax credits or payment classification issues. CA Sansaar