• Feb
  • 15
  • 2012

Procedure for Correction of Income Tax Payment challan

New Procedure of Income Tax payment challan correction by banks (for physical challans) from 1st September 2011

Revised Procedure from 1st September 2011 to get Income Tax , TDS, Self Assessment Tax, Advance Tax, Wealth Tax  and Other Direct tax Payment Challan corrected / Rectified which were  paid at bank in Physical Mode and time period within which correction request can be made along with conditions , Procedures for the same and Format of the letter to bank.

Challan Correction Mechanism

Under OLTAS (On Line Tax Accounting System), the physical challans of all Direct Tax payments received from the deductors / taxpayers are digitized on daily basis by the collecting banks and the data transmitted to TIN (Tax Information Network) through link cell. At present, the banks are permitted to correct data relating to three fields only i.e. amount, major head code and name. The other errors can be corrected only by the assessing officers.

New Procedure of challan correction by banks (for physical challans):

To remedy this situation, a new Challan Correction Mechanism for physical challans has been put in place. Under this mechanism, for income tax payments made on or after 1.9.2011, the following fields can be got corrected through the concerned bank branch:

> Assessment Year

> Major Head Code

> Minor Head Code

> TAN/PAN

> Total Amount

> Nature of payment (TDS Codes)

The time window for the correction request by tax payer is as follows :

S.No

Correction required in Field name Period of Correction Request (from Challan Deposit Date)

1

TAN/PAN

7 days

2

Assessment Year

7 days

3

Amount

7 days

4

Other fields (Major head, Minor head, Nature of payment)

Within 3 months

The time window for correction by the bank is 7 days from the date of receipt of correction request from the tax-payer.

Conditions:

The changes can be made by the banks, subject to following conditions:

  1. Correction in Name is not permitted.
  2. Any combination of correction of Minor Head and Assessment Year together is not allowed.
  3. PAN/TAN correction will be allowed only when the name in the challan matches with the name as per the new PAN/TAN.
  4. The change of amount will be permitted only on the condition that the amount so corrected is not different from the amount actually received by the bank and credited to Govt. Account.
  5. For a single challan, correction is allowed only once. However, where 1st correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields.
  6. There will be no partial acceptance of change correction request, i.e. either all the requested changes will be allowed, if they pass the validation, or no change will be allowed, if any one of the requested changes fails the validation test.

Procedure:

i. The tax-payer has to submit the request form for correction (in duplicate) to the concerned bank branch.
ii. The tax-payer has to attach copy of original challan counterfoil.
iii. In case of correction desired for challans in Form 280, 282, 283, the copy of PAN card is required to be attached.
iv. In case of correction desired for payments made by a tax-payer (other than an individual), the original authorization with seal of the non-individual tax­payer is required to be attached with the request form.
v.  A separate request form is to be submitted for each challan.

Procedure of challan correction by Assessing Officers (both physical and e-payment challans)

After the window period available to banks for challan correction, the assessee can make a request for correction to his or her assessing officer, who is authorized under the departmental OLTAS application to make such correction in challan data in bonafide cases, to enable credit of the taxes paid, to the concerned assessee.

________________________________________________________________

Format of application to bank for challan correction to be requested by the taxpayer

To

The Branch Manager,

——————————  (Address of Branch)

Taxpayer Details :

Taxpayer Name :

Taxpayer Address :

Taxpayer TAN/PAN :

Name of Authorized Signatory :

(in case of non-individual taxpayer)

Sub : Request for Correction in Challan No: 280/281/282/283 [Strike out which ever is not applicable]

Sir/Madam,

I request you to make corrections in the challan data as per following details : Challan Details:

BSR Code

Challan Tender Date (Cash/Cheque Deposit Date)

Challan Sl. No.

 -

Sl. No.

Fields in which correction required

Please Tick

Original Details

Modified Details

1. TAN/PAN (10 digit)
2. Assessment Year (YYYY)
3. Major Head code (4 digit)
4. Minor Head code (3 digit)
5. Nature of Payment (3 digit)
6. Total Amount (13 digit)

 Note: Please tick against the relevant fields where changes are required.

Tax payer/Authorized Signatory

Date

Note:

  1. Attach copy of original challan counterfoil.
  2. In case of correction to challan 280, 282, 283 attach copy of PAN card.
  3. In case of a non-individual tax payer, attach the original authorization with seal of the non-individual tax-payer.
  4. The request form for correction is to be submitted in duplicate to the bank branch.
  5. A separate request form is to be submitted for each challan.

Article was First Published on 28.08.2011


14 Responses to “Procedure for Correction of Income Tax Payment challan”

  1. ANAND says:

    what should be subject matter to correction in TAN NO.

  2. subhasini says:

    i am wrongly paid to other party paid to advance tax December 2013. correct name is subasini. wrongly credited advance tax to bhanumathi jasvathrai shah how to rectify the fault. tax amount Rs.5000

  3. MANGAL says:

    sir,
    i have deposit a tds amount in type of payment. ihave deposited in regular assessment (400) which should be in payable by tax payer(200)

  4. ashokpannala says:

    I have paid tds in code head 400 istead of 200 for the AY 2013-2013.How to correct the same .Please advice me
    Ashokp
    9989693630

  5. Dilshad ahmad says:

    Sir what a procedure for correction after 3 month if it is possible or not. please ans in my mail=ca.dilshadahmad@gmail.com

  6. GAURAV says:

    i need help because i have entered wrong pan no. on advance tax challan for f.y. 2011-12 dtd. 06-09-2011.
    I found this mistake now when i fill return of above said period.
    what will i do now ?
    what is the procedure to correct that mistake and how it will shows in my return

    Thanks & Regards
    Gaurav Agnihotri
    +919990777052
    +919654002051

  7. GAURAV says:

    Dear sir,

    I have deposited advance tax for F.Y. 2011-2012 on 06-09-2011 but now today on 18-12-2012, i found that in that challan i wrongly written my pan no. what will i do in this matter please help me as early as possible

  8. Pankaj Patel says:

    Dear Sir,

    I am working with Patel Consultacy company . I deducted TDS & paid challan 281 for sec 94c for Rs. 83045/- on 9th aug 2012 major head is correct but minor head incorrect 400 now corrected head 200. challan no.0061

    kindly suggest me to correction of minor head of this challan as soon as possible & send me reply to me .

    Thanks & regards
    Pankaj +91 9825911136

  9. rajni says:

    i have deposited tax in section 194 C instead of 194 I in apr 2012 on behalf of a company. what should i do now to correct my mistake. is there any penalty imposed on company

  10. Bidyut Chakraborty says:

    Unfortunately, I had also made similar mistake. My tax was paid under minor head 400 and IT CPC has send me a letter stating that the tax not received. I could not understand why? This was in assessment year 10-11. Can I correct the same today? Also, I forgot to show the TDS amount there. Is this also correctable now?
    With regards
    B.Chakraborty
    9830885690

  11. Ravi Jain says:

    which date is mention in TDS return original or revised challan date

  12. Dipak Chavan says:

    Dear Sir,

    I am working with TLPL company . I deducted salary TDS & paid challan 281 for sec 92B for Rs. 245757/- on 6th jan 2011 major head is correct but minor head incorrect 400 now corrected head 200. challan no.59491.

    kindly suggest me to correction of minor head of this challan as soon as possible & send me reply to me .

    Thanks & regards
    DIpak 9833048414

  13. Ratan rathi says:

    Is this mechanism is available for payments made before 1-09-2011 in which errors have crept and can be sought to be corrected from the assessing officer ?

  14. SATYA PRAKASH says:

    Facility for correction may be allowed after taking Rs.100 or so. If it is the mistake of Bank then Bank should deposit the money in NSDL for any mistake.

    The individual assesse shuld not be harassed in the name of rule or non-awareness of the procedure by the bank employees.

    It is suggested that some other agency should be authorized to do so after getting Bank authorization. The agency should charge some amount for the correction. This will decrease the work and individual tax payer has not be harassed by the Banks.

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