What is online Tax Accounting System?
OTAS is an approach that will be used or applied while collecting direct tax from any liable individual, companies, and organization. It helps in collecting information about entities who paid tax and especially who choose to pay their taxes through online mode. Also, has simplified the entire process and made it easier and transparent for income tax department of India.
Tax department of India uses authentic format for maintaining tax related record. This makes things easier for taxpayers. The associated banks also use to follow the same recording format for collecting tax amount. NSDL provides the file validation utility to keep the process in a structured format. As per the policy, a single copy of challan is used by the taxpayers, specified below according to tax type:-
After filing challan, bank collect documents from the customer and give them a CIN number. This number will be identification number of customer. It is a combination of release date, 7 digit bank barcode number and unique 5 digit challan number use to pay tax on that particular day.