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
> Total Amount
> Nature of payment (TDS Codes)
The time window for the correction request by tax payer is as follows :
|Correction required in Field name||Period of Correction Request (from Challan Deposit Date)|
|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.
The changes can be made by the banks, subject to following conditions:
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
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]
I request you to make corrections in the challan data as per following details : Challan Details:
Challan Tender Date (Cash/Cheque Deposit Date)
Challan Sl. No.
|Fields in which correction required||
|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
Article was First Published on 28.08.2011