Made mistake in income tax challan? Now you can rectify these errors online through the e-filing portal, here's how
With the income tax return (ITR) filing deadline just a week away (July 31, 2024), it's important to be mindful of potential mistakes that could arise from rushing through the process. One common area for errors is filling out information on an income tax challan. If you are a salaried individual, your employer would have already deducted TDS, taking care of your tax liability from salary income. However, if you've earned income from sources such as selling property, mutual funds, or shares, and if there isn't enough refund due to cover the tax liability, you'll need to pay capital gains tax using the self-assessment tax payment option on the e-filing ITR portal. To do this, you'll need to fill out a tax challan, which can be done either online or offline.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} #Budget' 2024 with ET
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Nobody willingly makes a mistake; it is mostly by accident that a mistake happens. The Income Tax Department also understands this, hence, they launched a new feature last year which allows you to make corrections in income tax challans, provided certain conditions are followed.
Read below to find out what these conditions are, and how to make a correction in your income tax challan.
How to pay income tax?
There are two ways you can fill up a tax challan and proceed to pay the required income tax:Online through the e-filing ITR portal, orOffline through banks (you need to take a printout of a tax challan generated through the e-filing ITR portal and then pay offline at the authorised bank).
"We can pay income tax by visiting the bank branch, but before doing this you must first generate the challan from the e-pay tax option on the e-filing ITR portal. The common challan forms used for tax payments are ITNS 280 (for income tax) or ITNS 281 (for TDS/TCS). Do remember to fill out the challan with correct details such as PAN, assessment year, type of payment (e.g., income tax, advance tax, self-assessment tax), etc," says Abhishek Gupta, Founder and Managing Partner, Pierag Consulting LLP.
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Gupta also explains the offline tax challan process. "Once you have taken a printout of the filled-in challan take it to any authorised bank branch where income tax payments are accepted and pay it. After processing the payment, the bank will provide a stamped receipt as proof of payment. This receipt should be kept safely as it serves as evidence of tax payment. The payment details are updated in the taxpayer's account with the Income Tax Department after clearance of the payment by the bank. This may take a few days, so it's essential to check the status online using the taxpayer's login credentials," he says.
What mistakes can be fixed using the challan correction feature on the e-filing ITR portal
"This facility has been rolled out since August 2023. Prior to that taxpayers had to approach the department for making such corrections. Now only if the taxpayer misses the online correction deadline, then they need to move a petition to the jurisdictional assessing officer (AO) for necessary corrections in the challan," says Ramakrishnan Srinivasan, former chief commissioner of income tax.According to the income tax website as of July 22, 2024, here's what you should know about making corrections in the income tax challan:Challan correction requests can be submitted only for Minor Heads 100 (advance tax), 300 (self-assessment Tax) and 400 (demand payment as regular assessment tax) and their corresponding Major Heads through e-filing portal. For corrections of other heads, you need to contact the jurisdictional AO.The time window for the correction request by the taxpayer for changing AY (assessment year) on the e-filing ITR portal is within 7 days of the tax challan deposit date.The Challans pertaining to FY 2019-20 (A.Y 2020-21) onwards are available for correction currently through the e-filing portal. (If you need to make corrections in older challans follow the old process which involves approaching the income tax assessing officer)Challan correction requests are allowed only once on the e-filing portal for any submitted challan. (If you want to put in another request for challan correction then you need to approach the jurisdictional assessing officer (AO).
It is important for you to make the corrections in your tax payment challan in time. For example: you are paying income tax for FY 2023-24 (AY 2024-25) but selected FY 2024-25 in the tax challan. If you have selected the wrong FY, then this could lead to discrepancy in the taxes deposited by you and what is reflected in your Annual Information Statement (AIS)/Form 26AS for a particular financial year. As a direct consequence of this mistake, you won't be able to claim this tax payment for ITR filed for FY 2023-24 (AY 2024-25).
How to make the tax challan correction online on the e-filing ITR portal
Here's a step-by-step guide on how to use the tax challan correction option:Step 1: Go to the e-filing ITR portal (https://eportal.incometax.gov.in/iec and login using your credentials.
Step 2: Navigate to the Services tab and click on 'Challan Correction' button.
Source: ITR portalStep 3: A new webpage will open, and it will have an option-'Create Challan Correction Request'. Click on it and then you will be redirected to another webpage where you can select the attributes for correction in challan. Click on 'Continue' once the selection is done.
Source: ITR portalStep 4: A new web page opens and here you will have to select the assessment year or type in the challan identification number (CIN) in order to create a challan correction request. Click 'Continue' to proceed.
Step 5: A new webpage opens and here you can update the challan details and make the necessary changes. Once done click on 'Continue'. A new webpage will open, and it will show a summary of the corrected challan. Click 'Continue' if you agree with the changes.
Source: https://www.incometax.gov.in/iec/foportal/help/ChallanCorrectionRequest-UserManualStep 6: A new web page opens and here you are required to e-verify the challan correction request either through Aadhaar OTP, DSC, EVC or other options. Post e-verification, a success message is displayed.
"If timeline for online submission of challan correction is missed, the taxpayer has to submit a request letter to her/his jurisdictional assessing officer (JAO) along with relevant enclosure(copy of challan, pan card copy, etc ) pointing out the nature of correction sought and submit in ASK counter in IT office and obtain acknowledgement. JAO will initiate action accordingly," says Srinivasan.
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This story originally appeared on: India Times - Author:Faqs of Insurances
