Follow Us :

Clarification on the use of challan forms with only three coun­terfoils for payment of advance tax and self-assessment tax

1. Board had recently  prescribed the form of challans with three counterfoils for payment of advance tax and self-assessment tax. Some problems have been reported in the implementation of the above decision. It has been reported that banks receiving payment of tax are retaining two counterfoils and returning only one foil to the taxpayer. As the taxpayer is expected to enclose proof of payment of advance tax and self-assessment tax along with the return of income, it has been pointed out that the absence of an extra foil for this purpose leads to difficulties.

2. The question has been examined in the Board. Currently, both types of challan, viz., having four counterfoils (the “old” challan) and three counterfoils (the “new” challan) are in use. Where the old challans are used, the existing distribution pat­tern will continue to be followed by the banks, viz.,—

     1.   copy to the ZAO

     2.   copy to the ITO

     3.   copy to the taxpayer for his record

     4.   copy to the taxpayer to be annexed to the return.

Where the new challan forms are used, the three foils will be distributed by the banks as under :

1st counterfoil to the Assessing Officer (i.e., CTU)

2nd counterfoil to the ZAO

3rd counterfoil to the taxpayer for his record.

In such cases, the taxpayer may enclose with his return of income a photocopy (attested by him) of his copy of the foil No. 3, which will be adequate compliance with Explanation (c)(i )  to section 139(9) of the Income-tax  Act.

Circular : No. 697, dated 16-12-1994

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
March 2024
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031