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How to Write Cheque for Income Tax Payment?

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2 2022-09-14T16:06:00+00:00
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I have paid income tax through cheque once, so I can tell you how to write cheque for income tax payment.

As you must know, you can pay your income tax dues directly to the RBI/SBI/Government Treasuries. You can make the payment by submitting crossed cheques to the income tax offices. For this, you will have to follow the process given below:

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How to Pay Income Tax in Bank by Cheque

  • Each payment must be made by a crossed cheque.

  • In Mumbai, Nagpur, Calcutta, Bangalore, Madras, Kanpur, and New Delhi where the Government business is transacted by RBI, the cheque should be drawn payable to (i) "The Income-tax Depart­ment" or (ii) "The Reserve Bank of India"

  • In any other city where the Govt. business is transacted by SBI or its subsidiary, the cheque should be made payable to the "Income Tax Department" and shouldn’t be drawn in favour of any Departmental Officer either by designation or by name.

  • The challan should be complete in every respect and should be submitted with the cheques for the same amount. It needs to be given with a pay-in slip present at the pay-in counter.

  • A provisional receipt with the office’s seal, duly signed and countersigned, will be provided in the cheque’s acknowledgement. You can collect your challan copy from the counter sometime after the cheque gets cleared and credited to the Govt. account.

  • To remove any doubt, it’s mentioned that the tax payment’s date will be the date on which the cheque proceeds are realised and credited to the Govt. account.

  • The cheque tendered by a taxpayer in payment is drawn by them. Where it isn’t possible and the taxpayer needs to tender 3rd party cheque in payment of the tax dues, you will have to follow this:

  • The 3

    rd

    party should draw the cheque directly in the Income tax Department’s favour and such a cheque should be accompanied by a letter from the cheque’s drawer.

Now you know how to make income tax payment by cheque.

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This is how to write cheque for income tax payment.

0 2024-07-30T21:24:45+00:00

Wondering about what to write on cheque for income tax payment? Writing a cheque for income tax payment in India requires attention to detail to ensure it is processed correctly. Here are the steps to follow when writing a cheque for income tax payment:

  • The cheque should be made payable to "Income Tax Department" followed by the specific designation, if applicable. For example, if the payment is towards self-assessment tax, you may write "Income Tax Department - Self Assessment Tax".

  • Write the amount in words on the line beginning with "Rupees." Ensure that the amount is clear and includes "only" at the end. For example, "Rupees Twenty Thousand Only." Write the amount in figures in the box provided. For example, "₹20,000/-".

  • Mention the date on the top right corner of the cheque in the format DD/MM/YYYY.

  • Ensure the correct account number is printed on the cheque or written clearly if using a cheque without pre-printed details. Sign the cheque as per your bank records. If the cheque requires multiple signatures, ensure all authorized signatories sign.

  • Write your Permanent Account Number (PAN), Assessment Year (for which the tax is being paid), contact number, and type of payment (such as Advance Tax, Self-Assessment Tax, Regular Assessment Tax, etc.) on the back of the cheque. This helps the Income Tax Department correctly account for the payment.

  • The cheque should be submitted to the bank authorized to collect income tax payments, along with the appropriate challan form (such as Challan 280 for individual income tax payments).

  • Ensure that the challan is filled out correctly, specifying the tax type, assessment year, and other relevant details. Upon submission, ensure to get the counterfoil of the challan form stamped and signed by the bank. This serves as proof of payment.

These steps on how to write cheque for income tax payment help ensure that your income tax payment is properly processed and credited to your account with the Income Tax Department. Always keep a copy of the cheque and challan for your records. 

This is all about how do I write a cheque for income tax.

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Read more

How Much Time it Takes to Clear Cheque in SBI

Hello, I can help you to know what to write on cheque for income tax payment. You can write the cheque for income tax payment by making it in favour of the Income Tax Department. Banks usually prefer cheque payments for offline modes, as it makes it easier for transactions in big numbers and the cheque is easier to track as well. I have made my payment through cheque a few times in the past. So, let me share more information below.

How to Fill Cheque for Income Tax Payment?

Here is how you can write a cheque for your income tax payment.

  1. You must make your payment with a crossed cheque.

  2. Be careful to write the cheque payable to the ‘Income Tax Department’ or ‘The Reserve Bank of India’ and not a particular officer of the department. Write 

  3. You should have the fully completed challan, which is to be submitted along with the cheque for the same amount. You have to submit these with a pay-in-slip.

  4.  In the cheque’s acknowledgement, you will find a provisional receipt with the IT officer's seal, duly signed and countersigned. 

  5. You will be able to take a copy of the challan from the counter after the cheque is cleared and credited to the government’s account.

  6. You will also find it is clearly stated that the date on which your cheque proceeds would be the same as the date on which you made the payment. 

Mind you in the cities of Bombay, Calcutta, Madras, New Delhi, Kanpur, Bangalore and Nagpur where the Government business is transacted by the Reserve Bank of India, you can write ‘The Reserve Bank of India’ in the payable section.

So, this is how to write cheque for income tax payment in India. If you want to know more, you can go through Sanjana’s response, who has summarised everything well.

 

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