The Income Tax Department collects lakhs of crores as taxes from taxpayers every year through various modes such as advance tax, self-assessment tax, or tax in regular assessments against demands. These tax payments are processed through challans, and even a minor error in selecting payment details can lead to financial loss of tax credit. To assist the taxpayers in resolving such issues, the ITD has established the Income Tax Challan Correction Process, allowing the correction of errors made while selecting attributes for tax payment in the challan.
What is Challan Correction?
To err is human, meaning making mistakes and committing errors is simply part of human nature. One of the common errors is selecting the wrong year of payment which often results in potential demand notices from ITD. However, to resolve this issue, a taxpayer has to do challan correction to correct the wrong attributes.
The process of challan correction is quite cumbersome involving physical visits to the AO causing hassle for a taxpayer. There is also a risk of revenue loss for the department if the challan is claimed twice. To avoid hassles and revenue loss, the ITD has enabled a new feature of Challan Correction on the Portal. Now, the taxpayer can go to the Income Tax Portal, and correct the mistakes in challan. This welcome change has given a big sigh of relief to the taxpayers but it comes with certain conditions and restrictions.
Key Considerations for Online Correction
- Online challan correction is available only for the challans of AY 2020-21 and onwards.
- Online correction is available only for three minor heads: Advance Tax(100), Self Assessment Tax(300), and Tax on Regular Assessment(400)
- The correction is time-bound, allowing a 7-day window for correction in the Assessment Year and 30 days for Major and Minor Heads.
- The taxpayer can only correct the challans which are unutilized. This means that the challans that are not used in any ITR filing or paying any demands can be corrected.
If any correction extends beyond the above-mentioned details, the taxpayer has to follow the offline challan correction process.
How to correct Income Tax Challan Online?
Steps for Online Correction:
- Login to the Income Tax Portal. Navigate to Services Tab> Challan Correction.
- Click on Create Challan Correction Request.
- Select attributes that needs correction in challan.
All the three options for challan correction are available from which a taxpayer can choose which attributes require changes in the particular challan.
- Challan Identification.
Select the mode for selecting challan based on Assessment Year or Challan Identification Number (CIN).
- Challan Selection.
The list of all the challans based on the selection made in Step 4 will reflect here. Select the challan that requires correction.
- Update the challan attributes.
The dropdown list is provided for each attributes including Assessment year, Major head and Minor head. The taxpayer can update the attributes to correct ones.
- E-verify and submit the correction request.
From the available options, e-verify the request and submit it. Once submitted, the screen will show successful submission to ITD.
How to track Challan Correction Online?
To track the status of challan correction, a taxpayer can go to the same Services tab> Challan Correction. It generally takes around 7-15 days for the challan correction to reflect.
How to correct Income Tax Challan Offline?
If the time limit for online challan correction has lapsed or there are any corrections such as changing PAN which are not supported online then the taxpayer has to go through the offline challan correction process.
The offline process involves physically visiting the Jurisdictional Assessing Officer along with the required documents. The taxpayer has to submit documents like a form requesting challan correction, challan receipt of tax paid, and an indemnity bond stating the taxpayer will be responsible for any revenue loss to the department. The AO will further undertake the process of challan correction which will take around 7-15 days.
FAQs
A challan correction for change is Assessment Year has to be done within 7 days of payment and for change minor heads within 30 days of payment.
The jurisdictional Assessing Officer can do offline challan correction.
On the income tax portal, under Quick Links tab, the option for “Know your AO” is available through which a taxpayer can check their Jurisdictional AO.
Hi, how long does it usually take to process the online income tax challan correction request ? If I have to raise a grievance about the delay, should it be addressed to the AO or to CPC ?
Hey @RanS,
It usually takes 7-10 days for the online challan correction request to get processed. Moreover, you can address the grievance to the AO.
Hope this helps!