Challan

Last updated • 6 min readFrom Wikipedia, The Free Encyclopedia

Challan or Chalan is a common Hindi word (चालान, cālān) that has become an Indian English technical word used officially in many professional, especially financial transactions. It usually means an official form or receipt of acknowledgement or other kind of proof document, piece of paperwork, police citation, etc. According to American Merriam-Webster Dictionary "Chalan" means voucher or invoice. [1] Similarly, British-English Dictionary Lexico also defines Challan [2] as noun, "an official form or document, such as a receipt, invoice, or summons", and verb, "issue (someone) with an official notice of a traffic offence" and gives several examples of their applications, which are also paralleled by the Oxford Learner's Dictionary's two separate entries on the same. [3] [4] Wiktionary also gives examples of the application of the word challan in southeast Asia, including its use as a verb with challaning and challaned used similarly in context and meaning to police ticketing or someone being ticketed. While most of the dictionaries talk about the meaning representing a monetary penalty which is true in most real cases, Collins English Dictionary goes one step further and defines the verb part of the meaning of Chalan as "verb (transitive), to cause (an accused person) to appear before a magistrate", [5] which in reality happens only in a subset of cases of Challan when a person misses paying the Challan and the matter moves to the next step of receiving a summon from a court. [6]

Contents

Etymology

The Indian English word challan comes from the Urdu/Hindi word Challan (چالان)/(चालान) which in turn comes from Sanskrit root verb Chal (चल), which means movement. So challans have something to do with mobility or passage or transfer. Thus, Challan possibly literally refers to the monetary transfer i.e. a transaction coupled with the other official act described in the paper or electronic pre-filled or printed form given as Challan. In contrast to the Police stations that have a large "Diary" where FIR etc. are lodged, Traffic police officers, on the street or in their mobile vans, carry portable printed Challan booklets. These booklets have provision of paper Half Cutting or Perforating or Creasing, along which they would tear off half of an individual leaflet. After making duplicate entries on either side, the Traffic Police Officer would detach the distal half piece off the challan booklet and issue to the offender as the "challan", in their official capacity.

Derivatives, portmanteau words, and phrases

It is common to have portmanteau words of challan with English prefixes: e.g. "e-Challan" would mean an electronic challan processed or paid online. E-Challan is similar to English-Hindi portmanteaus like e-Seva-Kendra, a service-centre (Seva-Kendra) that has electronic or online transaction facilities. Also, challan is part of Hindi-English phrases that are abbreviated (e.g., C.I.N. or "Challan Identification Number" in technical applications).

Application of "challan" in different contexts

As opposed to the banking Challan which is an acknowledgement receipt for a credit, in case of a Traffic Challan, the receipt or ticket usually represents acknowledgment of an accusation for a penalty which is usually fine of a sum of money.

Challan as a monetary credit receipt

Banking challan

In case of banking "Challan" is a way of crediting the money to one's bank account through a form, generally used in India and Pakistan as a receipt for payment or delivery, and "C.I.N." would stand for "Challan Identification Number". [7]

As per the definition on the UBS Management firm website: [8]

A challan or bank challan is defined as an official document, form, or piece of paper used to credit money from one account to another. It is almost similar to the deposit slip available in the bank with which you can deposit money into someone's account in cash. However, in the deposit slip you need to enter the recipient's data and details while in the bank challan, they are already pre-filled.

Tax challans

Several tax forms in India are known as tax challan [9] forms e.g. CHALLAN NO./ITNS 280, CHALLAN NO./ITNS 281, CHALLAN NO./ITNS 282, CHALLAN NO./ITNS 283. The abbreviation CIN is also used in this context of tax forms as well.

Delivery challan

When an item is delivered, the proof of delivery receipt is a delivery challan. Sometimes items are paid after delivery and physical verification of the delivered item and the "delivery challan" with receiving signature is held for future payment against it. Thus delivering items in advance "on a loan basis" before processing payment or procurement has come to be described as delivering "on a challan basis". In this case the term "loan basis" or "credit basis" is relative because both parties might keep a copy of the challan. But if there is only one original copy, then the receiver signs and puts receive details (usually of intact package), time and date etc. on the challan and hands it as a receipt of delivery credit to the party who sent the consignment.

General payment receipt challan

Any payment receipt from a big institution, especially a government institution, issued to an individual may be termed a challan. e.g. Oxford Learners Dictionary gives an example "You need to show a copy of the fee payment challan before you can take the exam. [10]

Challan as a punitive citation for an offence or infringement

Traffic challan

Another example of use of "challan" is as a traffic ticket issued by the traffic police for a violation of traffic rules by a driver. When a traffic challan is issued against a person's name he or she is responsible to pay the penalty depending on the type of violation made as per the Indian Motor Vehicles Act, 1988. [11] Traffic challans can be paid by various mechanisms e.g. by cash, at an e-seva center, or by any other payment mode as specified on the challan.

Challans under section 188 of the Indian Penal Code

Usually traffic police carry a receipt book named a challan book. But other than traffic violations other offenses may be also challaned with a magistrates order under Section 188 of Indian Penal Code (IPC). For example instances of not wearing a mask during the Covid-19 pandemic have been challaned under section 188 the IPC. [12]

E-challan

An e-challan [13] is an electronic format of challan. An e-challan can also be defined as a specific format used for depositing or remitting the contribution or statutory payment at a bank or treasury.

Traffic e-challan

Many Indian state governments have established a new challan system called e-challans. [14] The e-challan system of India has been in vogue for almost a decade, starting to roll out in pilot phases from 2012 onward. [15] The e-challan may be operated by PDAs, cell phones or e-Seva Kendras whose e-services include facility for payment of e-challans for traffic violation. They have also established web portals where one can check if their vehicle has any traffic offences registered against it. This website will detail the offence description, fine amount, user charges, and the total fine amount. In Coimbatore city the system started in October 2013 and service uses hand-held machines for Spot Fining System, which runs on a low cost platform named VIOLET (Violation Prevention and Regulation Enforcement), which runs on android-based tablets or cellular phones and is also integrated to a Bluetooth printer to dispatch receipts. [16]

Other initial cities where it started becoming operational included Ahmedabad, [17] Chennai, Hyderabad, Bangalore, Uttar Pradesh, Delhi, [18] Vijayawada etc., followed by Mumbai [19] and Pune by mid 2015.

As of 2022 an e-Challan in India may be followed up in a virtual court as well. [20]

Banking e-challan

Just like the traffic challan, the banking challan also has a corresponding e-challan in many banks. [21]

See also

Related Research Articles

<span class="mw-page-title-main">Post office</span> Customer service facility of a postal system

A post office is a public facility and a retailer that provides mail services, such as accepting letters and parcels, providing post office boxes, and selling postage stamps, packaging, and stationery. Post offices may offer additional services, which vary by country. These include providing and accepting government forms, and processing government services and fees. The chief administrator of a post office is called a postmaster.

<span class="mw-page-title-main">India Post</span> Statutory Body of India

The Department of Posts, d/b/a India Post, is an Indian public sector postal system statutory body headquartered in New Delhi, India. It is an organisation under the Ministry of Communications. Generally known as the Post Office, it is the most widely distributed postal system in the world, and India is the country that has the largest number of post offices in the world. It is involved in delivering mail (post), remitting money by money orders, accepting deposits under Small Savings Schemes, providing life insurance coverage under Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) and providing retail services like bill collection, sale of forms, etc.

<span class="mw-page-title-main">Receipt</span> Written acknowledgment that a person has received money or property in payment

A receipt is a document acknowledging that a person has received money or property in payment following a sale or other transfer of goods or provision of a service. All receipts must have the date of purchase on them. If the recipient of the payment is legally required to collect sales tax or VAT from the customer, the amount would be added to the receipt, and the collection would be deemed to have been on behalf of the relevant tax authority. In many countries, a retailer is required to include the sales tax or VAT in the displayed price of goods sold, from which the tax amount would be calculated at the point of sale and remitted to the tax authorities in due course. Similarly, amounts may be deducted from amounts payable, as in the case of taxes withheld from wages. On the other hand, tips or other gratuities that are given by a customer, for example in a restaurant, would not form part of the payment amount or appear on the receipt.

<span class="mw-page-title-main">Cheque</span> Method of payment

A cheque is a document that orders a bank, building society to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. The person writing the cheque, known as the drawer, has a transaction banking account where the money is held. The drawer writes various details including the monetary amount, date, and a payee on the cheque, and signs it, ordering their bank, known as the drawee, to pay the amount of money stated to the payee.

<span class="mw-page-title-main">Permanent account number</span> Code that acts as an identification for individuals, families and corporates

A permanent account number (PAN) is a ten-character alphanumeric identifier Foundational ID, issued in the form of a laminated "PAN card", by the Indian Income Tax Department, to any person who applies for it or to whom the department allots the number without an application. It can also be obtained in the form of a PDF file known as e-PAN from the website of the Indian Income Tax Department.

A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payment processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar. The payment gateway may be provided by a bank to its customers, but can be provided by a specialised financial service provider as a separate service, such as a payment service provider.

A payment is the tender of something of value, such as money or its equivalent, by one party to another in exchange for goods or services provided by them, or to fulfill a legal obligation or philanthropy desire. The party making the payment is commonly called the payer, while the payee is the party receiving the payment. Whilst payments are often made voluntarily, some payments are compulsory, such as payment of a fine.

The Foreign Exchange Management Act, 1999 (FEMA) is an Act of the Parliament of India "to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India". It was passed on 29 December 1999 in parliament, replacing the Foreign Exchange Regulation Act (FERA). This act makes offences related to foreign exchange civil offenses. It extends to the whole of India, replacing FERA, which had become incompatible with the pro-liberalization policies of the Government of India. It enabled a new foreign exchange management regime consistent with the emerging framework of the World Trade Organization (WTO). It also paved the way for the introduction of the Prevention of Money Laundering Act, 2002, which came into effect on 1 July 2005.

HDFC Bank Limited is an Indian banking and financial services company, headquartered in Mumbai. It is India's largest private sector bank by assets and the world's tenth-largest bank by market capitalization as of May 2024.

Tax deduction at source (TDS) is an Indian withholding tax that is a means of collecting tax on income, dividends, or asset sales by requiring the payer to deduct tax due before paying the balance to the payee.

<span class="mw-page-title-main">Taobao</span> Chinese website for online shopping

Taobao is a Chinese online shopping platform. It is headquartered in Hangzhou and is owned by Alibaba. According to Alexa rank, it was the eighth most-visited website globally in 2021. Taobao.com was registered on April 21, 2003 by Alibaba Cloud Computing (Beijing) Co., Ltd.

In India, a driving licence is an official document that authorises its holder to operate various types of motor vehicles on highways and some other roads to which the public has access. In various Indian states, they are administered by the Regional Transport Authorities/Offices (RTA/RTO). A driving licence is required in India by any person driving a vehicle on any highway or other road defined in the Motor Vehicles Act, 1988. This act sets limits on the minimum age for vehicle operation ranging from 16 to 20, depending on specific circumstances. A modern photo of the driving licence can also serve many of the purposes of an identity card in non-driving contexts, such as proof of identity or age.

Tamilnad Mercantile Bank Limited (TMB) is an Indian bank headquartered at Thoothukudi, Tamil Nadu. TMB was founded in 1921 as the Nadar Bank, but changed its name to Tamilnad Mercantile Bank in November 1962 to widen its appeal beyond the Nadar community. The bank currently has 509 full branches throughout India, 12 regional offices and two link offices, two central processing centres, one service branch, four currency chests, 48 eLobby centres, 262 cash recycler machines and 1151 automated teller machines (ATM).

Ulagampatti is a village located in S Pudur Panchayat Union of Singampunari Taluk in Sivagangai District, Tamil Nadu State, India.

National Payments Corporation of India (NPCI) is an Indian public sector company that operates retail payments and settlement systems in India. The organization is an initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust payment and settlement infrastructure in India.

Indian tax forms are used to document information in compliance with the Income Tax Act of 1961 and in accordance with the Income Tax Rules, which govern the process of filing income tax returns in India.

<span class="mw-page-title-main">Driver's license</span> Document allowing one to drive a motorized vehicle

A driver's license, driving licence, or driving permit is a legal authorization, or the official document confirming such an authorization, for a specific individual to operate one or more types of motorized vehicles—such as motorcycles, cars, trucks, or buses—on a public road. Such licenses are often plastic and the size of a credit card.

<span class="mw-page-title-main">Unified Payments Interface</span> Indian instant payment system

Unified Payments Interface (UPI) is an Indian instant payment system as well as protocol developed by the National Payments Corporation of India (NPCI) in 2016. The interface facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. It is used on mobile devices to instantly transfer funds between two bank accounts. The mobile number of the device is required to be registered with the bank. The UPI ID of the recipient can be used to transfer money. It runs as an open source application programming interface (API) on top of the Immediate Payment Service (IMPS), and is regulated by the Reserve Bank of India (RBI). Indian Banks started making their UPI-enabled apps available on Google Play on 25 August 2016.

Paytm Payments Bank (PPBL) was an Indian payments bank, founded in 2017 and headquartered in Noida. In the same year, it received the license to run a payments bank from the Reserve Bank of India and was launched in November 2017. In 2021, the bank received a scheduled bank status from the RBI.

<span class="mw-page-title-main">Nagarik App</span> Mobile app for Nepali government services for citizens

Nagarik App is a mobile application launched by the Government of Nepal to provide government-related services in a single online platform. The app was developed to facilitate an easier, systematic, and simplified delivery of government services to Nepali citizens digitally. The app was launched to play a pivotal role in revolutionizing the way citizens interact with the government. It offers government services through a single unified platform, minimizing the need for citizens to navigate multiple channels or physical offices for their diverse needs of government services. The services are added gradually according to the needs and services required. The government aims to reduce the physical queues and the need to be physically present to get services from the different government offices. One can get services online round-the-clock even during holidays. As of now, 25 services are included in the app, ranging from Police Clearance Report to Voters Card.

References

  1. "merriam-webster". merriam-webster dictionary. Archived from the original on 17 May 2022. Retrieved 17 May 2022.
  2. "Lexico". Lexico OUP English Dictionary. Archived from the original on 19 January 2022.
  3. "Challan 1 (noun)". Oxford Learners Dictionary. Archived from the original on 19 August 2017. Retrieved 18 May 2022.
  4. "Challan 2(Verb)". Oxford Learners Dictionary. Archived from the original on 17 September 2017. Retrieved 18 May 2022.
  5. "Chalan from Collins English Dictionary". Collins English Dictionary. Archived from the original on 30 April 2021. Retrieved 18 May 2022.
  6. "What happens if traffic e-challan not paid?". India Today. Archived from the original on 18 May 2022. Retrieved 18 May 2022.
  7. "Index to RBI Circulars". Reserve Bank of India. Archived from the original on 17 May 2022. Retrieved 17 May 2022.
  8. "What is a Challan?". UBS Management firm. Archived from the original on 3 July 2022. Retrieved 17 May 2022.
  9. "Tax Information Network of Income Tax Department". National Security Deposit Limited. Archived from the original on 9 December 2022. Retrieved 17 May 2022.
  10. "Challan". Oxford Learners Dictionary. Archived from the original on 19 August 2017. Retrieved 18 May 2022.
  11. "Turtlemint Insurance Site". Turtlemint. Archived from the original on 6 July 2022. Retrieved 17 May 2022.
  12. "Over 1,000 people penalized for not wearing face masks in Noida: Police". Hindustan times News paper. 25 April 2022. Archived from the original on 18 May 2022. Retrieved 18 May 2022.
  13. "what is E-Challan". What is traffic E-challan. Archived from the original on 18 November 2022. Retrieved 18 November 2022.
  14. "Ministry of Road Transport and Highways – E-Challan". Government of India MINISTRY OF ROAD TRANSPORT & HIGHWAYS. Archived from the original on 9 June 2022. Retrieved 17 May 2022.
  15. "CAG report finds issues in e-challan system". The Hindu. 14 June 2016. Archived from the original on 18 May 2022. Retrieved 18 May 2022.
  16. Palaniappan, V. S. (7 October 2013). "Police to use hand-held machines to issue e-challans". The Hindu. Archived from the original on 15 February 2014. Retrieved 25 June 2014.
  17. Kaushik, Himanshu (28 March 2018). "E-challan makes a comeback from April 15". The Times of India. Archived from the original on 1 November 2019. Retrieved 25 August 2019.
  18. Christopher Gonsalves (12 March 2018). "Frustations[sic] rise over new traffic e-challan system in Delhi". India Today. Archived from the original on 6 April 2018. Retrieved 5 April 2018.
  19. "Mumbai traffic woes: E-challan system within one month". The Times of India. 3 July 2015. Archived from the original on 19 May 2022. Retrieved 18 May 2022.
  20. "FAQ". Virtual Courts. Archived from the original on 28 May 2022. Retrieved 18 May 2022.
  21. "What is a Challan?". UBS Management firm. Archived from the original on 3 July 2022. Retrieved 17 May 2022.