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Error in challan : New mechanism for correction

Deposit of TDS can be made either electronically or by a physical challan. e-Payment of tax is mandatory for companies and others covered under mandatory tax audit. Several times, while depositing tax, errors may creep in. To rectify these errors, income-tax department has issued new guidelines effective 01-09-2011.

This new mechanism allows Banks to correct physical challans only.For correction in electronic challan, request will have to be made to Assessing Officer.

Correction in Physical Challans

What fields can be corrected by bank

  • Assessment Year
  • Major Head Code
  •  Minor Head Code
  •  TAN/PAN
  •  Total Amount
  •  Nature of payment (TDS Codes)

What is the time frame for correction request ?

  • Request for correction has to be made within 7 days of deposit of challan for correction in PAN, TAN and Assessment Year
  • For Major head, minor head and nature of payment, request can be made within 3 months of deposit of challan.

What is the remedy available after time frame is over ?

  • After lapse of time frame, request can be made to the Assessing Officer.

What is the time frame given to bank to carry out correction?

  • After receipt of request, bank must carry out the correction within 7 days

What are other conditions for correction ?

  • Correction in name is not allowed
  • Any combination of correction of Minor Head and Assessment Year together is not allowed
  • PAN/TAN correction will be allowed only when the name in the challan
    matches with the name as per the new PAN/TAN.
  • 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.
  • 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.
  • 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.

What is the procedure for requesting correction ?

  • The tax-payer has to submit the request form for correction (in duplicate) to the concerned bank branch.
  •  The tax-payer has to attach copy of original challan counterfoil.
  •  In case of correction desired for challans in Form 280, 282, 283, the copy of PAN card is required to be attached.
  •  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.
  •  A separate request form is to be submitted for each challan.

Correction in Electronic Challans

  • For correction in electronic challans and for correction after the time period for application to bank lapses, a written request in prescribed format has to be made to the Assessing Officer
  • Assessing Officer has power to rectify the error , in bona fide cases, to enable credit of tax to assessee

What is form of application to bank ?

income-tax department has given a format in which application can be made to the bank. The form is given in pdf format below

Bank Letter