INCOME TAX

Finance Act, 2005 : Changes in major head and challans-OLTAS

RBI Circulars

Circular No. DGBA.GAD.No. H-42/42.01.034/2005-06

Dated July 4, 2005.

As you are aware, the Finance Act, 2005 has introduced two new taxes i.e., fringe benefit tax and banking cash transactions tax. Consequently, certain changes/rationalization have been made to major heads and sub-minor head of accounts by Income-tax Department as under :

I. Challan No. ITNS 280

The Challan is for the payment of the two major heads i.e. (a) 0020 Income-tax on Companies (Corporation Tax) and (b) 0021 Income-tax (other than companies).

It should now be possible for taxpayers to pay taxes for assessment years other than consecutive assessment years. For example, in the case of assessments for block period (more than one consecutive assessment year), the assessment year field in the banks software may be modified to accept payments for a period other than consecutive assessment year for example payments for the assessment years 1991-97, 1992-99, 1993-99 etc.

 II. Challan No. 281

The challan is meant for payment of TDS (tax deducted at source)/TCS (tax collected at source). It has two major heads i.e. (a) 0020 for company deductees and (b) 0021 for non-company deductees. The challan has two minor head codes which are to be ticked by the taxpayer (a) TDS/TCS payable by taxpayer (Minor Head -200) (b) TDS/TCS on regular assessment raised by Income-tax Department (Minor-Head-400).

The new 3 digit codes sub-minor heads now introduced in the challan are as under :

Section	Nature of payment	Code
206C	Collection at source from alcoholic liquor for human consumption	6CA
206C	Collection at source from timber obtained under Forest lease	6CB
206C	Collection at source from timber obtained by any mode other than a forest lease	6CC
206C	Collection at source from any other forest produce (not being tendu leaves)	6CD
206C	Collection at source from Scrap	6CE
206C	Collection at source from contractors or licensee or lease relating to parking lots	6CF
206C	Collection at source from contractors or licensee or lease relating to toll plaza	6CG
206C	Collection at source from contractors or licensee or lease relating to mine or quarry	6CH
206C	Collection at source from tendu leaves	6CI

 III. Challan No. 282

This challan is for the payment of a number of taxes. The changes introduced in this challan are as under :

a. Securities transaction tax has been renumbered as Major Head 0034 in place of the earlier Major Head 0025.

b. Wealth-taxMajor Head 0032 has been included in this challan. Earlier this Major Head was in Challan No. 280.

 IV. Challan No. 283

This is a new challan introduced. It is for the payment of

(a) Banking cash transaction taxMajor Head 0036 and

(b) Fringe benefit taxMajor Head 0026.

The valid Minor Head for both these categories of taxes are

(i) Self-assessment tax, Minor Head - 300 and

(ii) Tax on regular assessment tax - Minor Head 400 and

(iii) Advance tax, Minor Head-100.

2. You may please arrange necessary modification in OLTAS software and bring the above changes to the notice of all the branches collecting direct taxes. This would enable the branches to accept payment of these taxes with immediate effect.

3. Please acknowledge receipt.

(Sd.) M.T. Varghese,

General Manager