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How to Rectify Errors Made in the Payment of Advance Tax and Self-Assessment Tax

Updated on:  

08 min read

Taxpayers make payments of self-assessment, advance tax and other direct taxes online using the respective challans. However, while making the payment, sometimes the taxpayers may choose the wrong assessment year or the wrong tax category (major head code or minor head code) or make an error in the amount of tax paid.

Latest Update

Union Budget 2021 Outcome:

Taxpayers need to pay advance tax on dividend income only after the declaration or payment of dividend. No interest under section 234C shall be charged on account of failure to estimate the dividend income resulting in a shortfall of advance tax payment, subject to if the advance tax liability is paid in the subsequent instalments after the declaration or payment of dividend.

Recording of tax payments under TIN

All the tax payments are recorded under the Tax Information Network (TIN) of the Income Tax Department. The taxpayers’ data flows from banks directly to Tax Information Network.

Challan status enquiry (CIN)

Taxpayers can view the tax paid by them by logging on to http://tin-nsdl.com. A taxpayer has to feed in the below details under the option ‘Challan Status enquiry’ (using CIN based view) and verify whether their payment is registered with the government:

  • Challan tender date
  • BSR code of the collecting branch
  • Challan serial number
  • Amount of tax paid

Upon feeding the data mentioned above, the complete details of the challan are displayed below:

A taxpayer can make payment of income tax either online or using physical challan at the bank branch.

Correction of error-tax payments made online

Taxpayers have to contact their jurisdictional assessing officer for making corrections in the challan details. Each taxpayer is assigned an assessing officer for assessment of their income tax returns and related matters.

You can locate your jurisdictional assessing officer through the tab ‘Know your AO’ on the e-filing portal. You can access the data through a mobile-based OTP. Alternatively, you can locate your jurisdictional assessing officer through your e-filing account on the e-filing portal – Under ‘profile settings-My profile-PAN details’. Once you have located your jurisdictional assessing officer, you need to approach the assessing officer at their office and place a request for correction of the errors in the challan. You have to file a letter in the format and attach a copy of the challan paid.

Correction of error-tax payments made at the branch of a bank

In the case of the following errors, the bank branch accepting the tax payments are permitted to correct the challan data and in the time frame mentioned below:

  • Amount of tax – within 7 days from the deposit of challan
  • Assessment year – within 7 days from the deposit of challan
  • Major head code – within 3 months from the deposit of challan
  • Minor head code – within 3 months from the deposit of challan
  • PAN of the taxpayer – within 7 days from the deposit of challan
  • Nature of payment – within 3 months from the deposit of challan

Hence, a taxpayer has to make an application for correction within the time period mentioned above. The procedure for making the correction at the bank branch is:

  • Fill up a request for correction form at the bank branch which accepted the initial tax payment. Retain an acknowledged copy of the request letter filed.
  • Submit the original counterfoil of challan paid along with the request and a copy of your PAN card.

In case you miss filing a request for challan correction within the time mentioned above, you have to contact your jurisdictional assessing officer and place a request for correction with their office. The banks are allowed to make the changes only subject to certain conditions:

  • Banks will not make corrections in the name of the taxpayer.
  • Both minor head and assessment year are not allowed to be corrected at the same time.
  • A correction in the PAN or TAN is allowed only if the name in the earlier PAN or TAN matches with the name in the corrected PAN or TAN.
  • The amount of tax can be corrected only if the corrected amount is the same as received by the bank under the original challan.
  • Corrections are allowed only once for a particular field. A field once corrected cannot be corrected for a second time.
  • There is either a complete correction of all the requested fields or rejection. If even one of the fields fails the correction criteria, the entire request is rejected.

Frequently Asked Questions

What is advance tax payment?

Advance tax is income tax that is paid in advance during the financial year, instead of a lump sum payment at the end of the year. It is also known as the pay-as-you-earn tax. These payments have to be made in instalments as per the due dates provided by the income tax department. In India, a person is liable to pay advance tax if his tax liability for a financial year is more than Rs.10,000.

Why should advance tax payments be made?

Advance tax payments benefit both the government and the individual/organisation paying it. From the government’s perspective, it provides a continuous flow of income throughout the year. From the individual/organisation’s perspective, it reduces the year-end burden of paying taxes in a lump sum. Non-payment of advance tax could result in the taxpayer being liable to interest under the Income Tax law. Hence, timely payments of advance tax should be made.

How to check advance tax payment status?

To check the status of your advance tax payment challan, go to https://tin.tin.nsdl.com/oltas/index.html. Select CIN (Challan Identification Number) Based View. Then enter the required details being asked for, in order to view the status. You can also check the list of advance tax payments made by logging in to your income tax account at https://www.incometaxindiaefiling.gov.in/home and going to My account -> View Form 26AS (Tax Credit), and entering the financial year and type of view/download.

How to make payment of income tax offline?

Tax payment can be done offline by visiting authorized banks and asking for relevant Challan i.e Challan 280 in case of advance tax and self assessment tax. Submit the filled challan along with cheque to the bank in favor of “Income tax”

How to make e payment for income tax?

For online payments, please log on to the website tax information network. Select services from the menu and select “e-payment – pay taxes online” Select the Challan No / ITNS 280. A new window will open, select “income tax (other than companies” for the tax applicable, and select the type of payment of tax – self-assessment tax, advance tax, etc. Select the mode of payment, either net banking or through a debit card. Other details like PAN, assessment year, state and pin code is to be mentioned. On confirmation of data entered, you will be directed to the net-banking site of the bank/fill debit card details. Make the payment by confirming the OTP. A challan counterfoil will be displayed containing CIN, payment details, and bank name. This counterfoil is the proof of payment, which should be saved for future reference.

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