Tax Challan Correction Paid Income Tax for wrong Assessment Year ?

INCOME TAX CHALLAN CORRECTION

April 27,2018

 

Paid Income Tax for wrong Assessment Year ?

 

NSDL receives tax collection data as uploaded by the bank.

NSDL is not authorized to carry out any changes in the data sent by the bank to TIN.

The fields that can be corrected by the Taxpayer through Bank are tabulated below

Sl. No.Type of Correction on ChallanPeriod for correction request (in days)

1PAN/TANWithin 7 days from challan deposit date

2Assessment YearWithin 7 days from challan deposit date

3Total AmountWithin 7 days from challan deposit date

4Major HeadWithin 3 months from challan deposit date

5Minor HeadWithin 3 months from challan deposit date

6Nature of PaymentWithin 3 months from challan deposit date

Note :

1. Above correction mechanism is applicable only for physical challans with deposit date greater than equal to September 1, 2011.
2. Any correction request initiated by the taxpayer after the time limit specified above shall be rejected by Bank.
3. 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.
4. 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:
   Sl. No.Type of Correction on ChallanPerformed By
   1PAN/TANAssessing Officer
   2Assessment YearAssessing Officer
   3Major HeadAssessing Officer /Bank
   4Minor HeadAssessing Officer
   5Nature of PaymentAssessing Officer
   6Total AmountBank
   7NameBank
5. For rectifications in challans paid through online mode (internet challan) , taxpayer may contact their concerned Assessing Officer (AO) of the Income Tax Department (ITD).
6. More details on Challan Correction Mechanism available at http://www.incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx?path=http://www.incometaxindia.gov.in/documents/challan-correction-mechanism-26082011.htm?int=1&IsDlg=1

Option 1:

 

A] If the payment has been made by physical challan:

i] Correction within 7 days from payment of tax:

Many taxpayers make the tax payment through physical challans. In such cases, Income-tax department has allowed a 7 day period during which the correction in Assessment Year could be made by the Bank. The taxpayer needs to apply for correction to the bank within 7 days of the date of deposit of challan.
You may refer the Draft format of challan correction application to the bank.

Bank will consider the said application and correct the mistake accordingly.

ii] Correction after 7 days from payment of tax :

In case taxpayer realises the mistake after 7 days, then he is required to apply to his Income-tax officer for the correction in challan.

You may refer the Draft format of challan correction application to the Assessing Officer.

The Income-tax officer will consider the said application and correct the mistake accordingly.

Click here to know about Jurisdictional Assessing Officer (Income Tax Officer)

 

B] If the payment has been made by online challan:

If the payment of taxes is made by the taxpayer by way of online banking, the taxpayer is required to apply to his Jurisdictional Assessing Officer (Income-tax officer) and request him to correct the details.

You may refer the Draft format of challan correction application to the Assessing Officer.

The Income-tax officer will consider the said application and correct the mistake accordingly.

 

When the demand against my name will be dropped?

On making the application to the Assessing Officer, the necessary corrections will be made by him in the Income-tax details of the taxpayer. Taxpayer may refer Form 26AS to ensure that requisite corrections have been made in his tax records. 

Once the taxpayer ensures himself that the correction has been done, he may proceed to file an Online Rectification application claiming that the Income-tax Return for the said Aassessment Year shall be re-processed. 

Click here to know about How to apply for online rectification?.

Once the Income-tax Return is re-processed, the demand against the taxpayer should automatically get dropped. You may check the same into your login as well.

(A)Draft format of application of challan correction to be submitted to bank

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 whichever is not applicable]

Respected Sir/Madam,

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

Challan Details:

BSR Code        Challan Date (Cash/Cheque Deposit Date)Challan Sl. No.

_______                __________                                                            ________    

Sl. No.Fields in which correction requiredPlease TickOriginal DetailsModified 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)

Taxpayer’s Signature

Date: _________

(B) Draft format of application of challan correction to be submitted to the Assessing Officer

Name of the taxpayer __________

Address in detail with PIN code ____________

PAN:  __________                                                                                             

Date: ______­­­­­­­­­­­­­­­­­­­­­­­

To,

The Income Tax Officer,

____________________ (Ward No.)

_________________________ (Address with PIN code)

_______________ (Email ID of the officer)

Respected Sir/Madam,

Sub: Request for rectification of Assessment Year in self-assessment tax challan.

Ref.: PAN- ____________.

This is with reference to the challans shown in the following table. Wrong assessment year was selected by me inadvertently, while making the payment of self-assessment tax.

ParticularsChallan Details

Name of the Bank

BSR Code

Challan No.

Amount

A.Y. as per the challan (Incorrect)

A.Y. which is required (correct)

While making the online payment of self-assessment tax through ­­­­__­­___ bank, assessment year was wrongly selected by me as mentioned above. The said payment has also been disclosed in Form 26AS. I am enclosing herewith a copy of Form 26AS for the relevant assessment year.

I have computed my taxable income for the abovementioned year and thereby paid the balance tax liability by way of self assessment tax. However while paying the taxes, I inadvertently selected the wrong assessment year. hence I request you to kindly make the necessary correction in my Income-tax records. I am also enclosing the copy of ITR-V for the said year and challan of the taxes paid for your perusal. I further request that the credit of above challan shall be given in A.Y. _______.

Inconvenience caused to you is highly regretted.

Thanking you in anticipation,

Yours Faithfully,

{Name of Taxpayer}

Option 2:

File for a rectification and ask for a Refund.

The second option is much simpler but requires you to re-pay the tax for the correct Assessment year and later file a rectification request for the incorrect Assessment year for which additional tax has been accidently paid and ask for a refund. To go with the second option kindly follow the process as described.

1. Pay the Tax for the correct Assessment Year. Refer the following link to pay : http://mytaxhelper.com/component/content/article/43-resources/152-i-need-to-deposit-tax-how-can-that-be-done
2. Contact MyTaxHelper Team to re-file your income tax return for the incorrect Assessment year for which additional tax has been accidently paid.
3. MyTaxHelper Team will now prepare and re-file your Income Tax Return rectification request for the wrongly selected Assessment year.
4. You would receive a refund in your mentioned bank account within 6-8 months.

We hope this piece of information would prove to be helpful for many of our clients. Incase of any more clarifications please feel free to contact us