Correction in Income Tax / TDS challan after payment

Article explains how we can get corrected Physical Income Tax / TDS challan after payment through Bank with period of correction and format to apply for correction.

Recently I faced a situation where the tax demand on regular assessment of my client for A.Y 2016-17 was deposited with a nationalized bank but wrongly the said payment of demand was done towards A.Y 2017-18. This situation may have been faced by many assessees because there may always a possibility of mentioning wrong Assessment year or wrong PAN/TAN etc in the TDS Challan or in Income Tax Challans.

In such situation the first thing that comes to mind is how one can get the challan corrected after the payment of tax so that right credit of tax is given to the assessee/deductor concerned. The power to amend such wrong details in challan after payment of tax in OLTAS has been given to Assessing officer and Bank depending upon the type of correction, which has been provided as follows for the benefit of all concerned. 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.

The fields that can be corrected and the entity authorized to carry out corrections on challan with deposit date less than September 1, 2011 are as below:

In case of  physical challans with deposit date greater than equal to September 1, 2011, the fields that can be corrected by the Taxpayer through Bank are tabulated below:

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

Please Note

 1. Thus application should be made for correction to the A.O or Bank in case of any mistake in Income Tax/TDS Challan depending upon the type of correction as mentioned above.

2. For challans with challan deposit date from September 1, 2011 to September 30, 2011, the time limit for correction in TAN/PAN, Assessment Year and Amount will be within 45 days from challan deposit date.

Conditions:

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

i. Correction in Name is not permitted.

ii. Any combination of correction of Minor Head and Assessment Year together is not allowed.

 iii. PAN/TAN correction will be allowed only when the name in the challan matches with the name as per the new PAN/TAN.

iv. 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.

v. 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.

vi. 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:

–

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.

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