Skip to main content

Tax Challan Correction Procedure

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.

Comments

  1. sanjay12:22 PM

    How one can find or locate 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 salaried assessee.

    ReplyDelete

Post a Comment

What do you think about this? Please write your comment.

Popular posts from this blog

INSPECTION MANUAL OF STOCK, BOOK DEBTS & SECURITIES

CONTENTS SR. NO. CHAPTER PAGE NO. INTRODUCTION STOCK & RECEIVABLES AUDIT VERIFICATION OF STOCK & DEBTORS PROCEDURE OF STOCK AUDIT VERIFICATION OF SECURITIES ANALYTICAL REVIEW INTERNAL CONTROL QUESTIONNAIRE STOCK b) BOOK DEBTS LIST OF DOCUMENTS TAKEN AS WORKING PAPERS SPECIMEN INSPECTION REPORT SPECIMEN MANAGEMENT REPRESENTATION LETTER CHAPTER 1 INTRODUCTION: Banking is an important sector of the economy of any country and for the development of the economy a healthy banking system is a must. After the liberalization of the economy, the banking system has undergone a total change in India. There is hard competition in the banking industry to survive in the current circumstances. With the purpose to have better financial discipline & to ensure uniformity in accounting norms RBI introduced the concept of assetclassification & income recognition as per the recommendations of Narasimhan Committee. It was also suggested to classify the advances given by banks into Performing & Non Perfor…

A Complete Guide to sections 54 & 54F Exemptions - T.V. GANESAN CS

A Complete Guide to sections 54 & 54F Exemptions T.V. GANESAN CS If an individual transfers any long-term capital asset and plans to reinvest the sale proceeds in a new residential house property then he would be eligible to claim exemption under sections 54 and 54F of the Income-tax Act, 1961 subject to fulfilment of certain conditions. In the last couple of years there has been a phenomenal increase in the sale of properties resulting in capital gain including but not limited to the land owners giving the land to the developers and entering into Joint Development Agreement, receiving more than one flat from the builder and yet avoiding capital gains tax. In this article the author has enumerated various decisions and judgments of the Tribunals and the High Courts which have liberally interpreted the provisions of the Income-tax Act and extended the capital gains exemptions to the assessees. Introduction 1. Out of the various investment options available, investment in real estate …

Excel Add-in to convert amount in figures to words by Premal

Gentlemen:
AmtInWords.xla is attached to this mail. It is an MS Excel Add-in written by me to convert amount available in figures to words.
Installation
Copy the attached file to the folder where excel stores the add-ins. (To know where excel stores the add-ins, open any workbook, click on Tools - Add-ins - Browse)
Then open an excel workbook. Click on Tools - Add-ins - Browse - Give the path to this Addin - Ok
Usage
You can use the functions AmtInWords and AmtInWordsUS in any worksheet. The syntax is:
=AmtInWords(decimal number/cell reference, [currency code])
=AmtInWordsUS(decimal number/cell reference, [currency code])
Examples follow:
=AmtInWords(10000000)
=AmtInWords(123456.77)
=AmtInWords(C4)
=AmtInWordsUS(B3) ' Shall give the amount in millions (US format)
=AmtInWordsUS(B3,"USD") ' Shall give the amount in millions (US format) and in US currency (Dollars)
=AmtInWords(C4,"GBP") ' Shall give the amount in lakhs and in UK currency (Pounds)
Notes
The system shall N…