An income tax challan allows for a convenient way to pay the taxes due on your income, if you have paid less tax than what you are liable to pay for the assessment year. You just need to fill the form, and submit the payment at a bank.
But it may so happen that you enter the wrong details in the challan, say, for instance, the wrong tax category code, wrong assessment year or even the wrong payment amount. These can result in a faulty income tax return filing or tax payment.
“When I filed ITR for assessment year 2022-2023 in July, I had tax dues and I paid them online through Netbanking (online challan). Now I am receiving email, SMS, and letter from the Income Tax Department stating that the tax due arrears are still outstanding for payment of the same exact amount which I paid in July. When I checked the ITR portal I saw the same amount which I paid as tax in July is showing under the advance tax component,” a person asked on social media.
According to Sujit Bangar, founder, Tax Buddy, a tax filing assistance company, what may have happened was that the user entered the wrong assessment year while filing the online tax challan. He probably filled the correct assessment year while filing his ITR, because as of today, ITR can be filed only for AY 2022-23.
One cannot file an ITR for AY 2021-22 or AY 2023-24 as of today. So, the mistake happened while paying the challan, therefore one needs
to be very careful while putting in the year when one is paying taxes. he says.
The year in which income is earned is the relevant financial year (F.Y). And the year in which income tax return is being filed declaring the income earned in the respective FY is known as assessment year (A.Y). "Income tax payment and income tax return filing is based on assessment year," Bangar further added.
According to Pallav Pradyumn Narang, Partner, CNK, a Delhi based CA firm, knowing the difference between assessment year and previous year is of crucial importance as it may lead to offering wrong incomes earned during the year for assessment. Quoting wrong year in the column of assessment year may also make the income tax return termed as 'defective' and notice of defective return under section 139(9) of the Income Tax Act, 1961 may be served on the assessee.
"If the Assessing Officer considers the return to be defective, then a notice will be sent to the taxpayer. The taxpayer will have 15 days time to respond to the notice. The assessee may revise his return by uploading a new form on portal addressing the defects within a period of 15 days from the receipt of notice under section 139(9)," Narang further added.
Challans can be paid in two ways – either at the bank or through an online mode.
If the challan has been paid in the physical mode through the bank, then the user can approach the bank within seven days of the challan date to rectify the error.
In case of offline bank challan mode what the user needs to be do is submit the request form for correction (in duplicate) to the concerned bank branch. A copy of original challan counterfoil should also be attached with this request form.
"In case of correction desired for challans in Form 280, 282, 283, the copy of PAN card is required to be attached. A separate request form is to be submitted for each challan," Narang further added.
If it has been paid through Netbanking or through other online challan mode, then the user has to apply to the income tax assessment officer to rectify the mistake.
“A taxpayer can apply at any time to the tax officer for correcting the tax challan. There is no time limit that has been specified. However, do note, correction of date of payment of challan is not possible either by the bank or by the tax officer,” says Ankit Jain, partner, Ved Jain & Associates, a New Delhi based CA firm.
