Para 15.7 — CAM
Original Rule Text
15.7 PROCEDURE TO BE FOLLOWED FOR DIRECT TAX PAYMENT THROUGH OTC AT THE BRANCHES OF AUTHORIZED BANKS:
15.7.1 The Taxpayer Prepares challan online through TIN 2.0 portal following the guidelines as provided by the Income Tax Department. From the available payment options, the taxpayer would select OTC mode which has the options of payment by cheque, DD, cash or Internal Transfer (to be used exclusively by the RBI for internal transfer of funds). The name of the authorized bank/RBI where the instrument/cash is to be presented is required to be selected necessarily. It will be prefilled as “RBI” in the case of internal transfer of funds.
15.7.2 The challan form so generated will be available on the dashboard of the taxpayer in downloadable/ printable form from TIN 2.0 portal. The taxpayer will print the challan form for making the payment. If the payment is made by cheque or DD, the challan itself would have a disclaimer that the payment is subject to realization of cheque or DD.
15.7.3 For OTC payments, the CRN generated would be valid for a pre-defined period as prescribed by Income Tax Department after the date of its generation, within which duration, payment instrument/cash is to be tendered. Once a payment instrument (cheque or DD) is deposited in the bank, the CRN shall remain valid for 90 days from the date of deposit of instrument in the bank.
15.7.4 Challan tendered at the counter of any branch of an authorized bank,:
a) The tax payer can then approach any branch of that selected bank to make payment through the OTC mode, along with the printed copy of challan form bearing the CRN and the instrument or cash. b) There is a linkage between the TIN 2.0 and the Core Banking Solution (CBS) of the authorized banks/RBI whereby the details of challan is shared by the TIN 2.0 system with the CBS of the bank selected by the tax payer to facilitate the cashier / teller to verify the details of the challan submitted by the taxpayer. c) The cashier / teller verifies the details of challan, payment instrument and amount provided by the taxpayer with those displayed in the bank’s system and should accept the receipt only when no discrepancy is found. d) The taxpayer may make payment by cash or instruments drawn on the same bank or on any other bank, including outstation cheque/DD.
15.7.5 Generation of CIN in the case of challans tendered with cash, same bank instrument and RBI’s Internal transfer:
a) In such cases just after realization of tax payment, CIN is generated and the same is intimated to TIN 2.0 and PRAKALP on a real-time basis and to the RBI on T+1 working day basis through luggage file. b) After generation of CIN, the bank cashier shall put the Bank Reference No. (or RBI Transaction Number, as applicable) and CIN on the taxpayer’s counterfoil of the challan form presented by the taxpayer.
What This Means
For Over-the-Counter (OTC) direct tax payments, the taxpayer generates a challan on the TIN 2.0 portal, selects OTC mode with the preferred authorized bank, prints the challan, and visits any branch of that bank. The cashier verifies challan details against the bank's system (linked to TIN 2.0 via CBS) before accepting payment. For same-bank instruments or cash, the CIN is generated immediately. For cheques drawn on other banks, the CIN is generated only after clearing, and the taxpayer can check the status on TIN 2.0 without revisiting the bank. If a cheque bounces, the bank informs TIN 2.0 and the taxpayer is notified.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1OTC payments require a printed challan with CRN generated from TIN 2.0 portal
- 2Payment can be by cash, cheque, DD, or internal transfer (RBI only) at any branch of the selected authorized bank
- 3CRN validity: pre-defined period after generation; extends to 90 days from deposit date once instrument is tendered
- 4For same-bank instruments and cash, CIN is generated immediately on realization
- 5For other-bank instruments, CIN is generated only after clearing — taxpayer checks status on TIN 2.0 portal
Practical Example
A shopkeeper wants to pay Rs 80,000 advance tax via OTC. He generates a challan on TIN 2.0, selects Bank of Baroda, and prints it. At the BoB branch, the cashier verifies the CRN in the bank's CBS system. The shopkeeper pays by cash, and the CIN is generated instantly. The cashier stamps the CIN and bank reference number on the taxpayer's counterfoil. The CIN is reported to TIN 2.0 and PRAKALP in real time and to RBI via luggage file on T+1.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if I tender a cheque drawn on a different bank?▼
Can the bank charge commission for other-bank instruments?▼
What happens if my cheque is dishonored?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.