Income Tax Challan Correction, Rectification of Challan Details

Process of Income Tax Challan Correction and Rectification of Challan Details. One of the most common problem related to payment of income tax is wrong details filed in Income Tax Challan,  So how to rectify or correct the Income Tax challan or how to transfer the   income tax paid to correct PAN Number or how to correct assessment year in IT Challan. So to solve the challan correction problem income tax Income Tax Department has introduced 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. So if person want to correct the PAN number or  Assessment Year in Income tax Challan can do so within 7 days by filing application with Bank of Deposit but after 7 days he has to contact assessing officer for any correction in Income Tax Challan.

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,  TAN/PAN,  Total Amount  can be corrected with in 7days from challan deposit date
  • Nature of payment (TDS Codes),  Major Head Code  Minor Head Code can be corrected with 3 months from challan deposit date.

Conditions for correction of Income Tax Deposit Challan by Bank
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.

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:
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

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.

Leave a Reply

Your email address will not be published. Required fields are marked *