From 1 June, 2004 the Income Tax Department has introduced a new system for payment of Direct Taxes called Online Tax Accounting System (OLTAS). This system not only simplifies the procedure for payment at the collecting branches of designated Banks but is also a breakthrough in accounting of Direct Tax Payments. All collecting branches of various Banks have been networked and integrated with Tax Information Network (TIN) hosted by National Securities Depository Ltd. (NSDL) and the Income Tax Department.
new single copy challan-cum-acknowledgement form instead of the erstwhile four-copy challan has been introduced by the Income Tax Department. The challan has a unique identification number called Challan Identification Number (CIN). With the help of CIN and PAN, every payment is uniquely identified thereby resulting in correct tax credit as also enabling online transmission of details of tax payments to the Income Tax Department. Further, it is also not necessary to enclose a copy of challan along with the return of income.