Challan Correction Mechanism

Under 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.

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

    Major Head Code

    Minor Head Code

    TAN/PAN

    Total Amount

    Nature of payment (TDS Codes)

The time window for the correction request by tax payer is as follows :

S.No	Correction  required in Field name		Period of Correction Request (from Challan Deposit Date)
1	TAN/PAN		7 days
2	Assessment Year		7 days
3	Amount		7 days
4	Other fields	(Major	Within 3 months
	head, Minor head, Nature of payment)

The  time  window  for correction  by the  bank  is 7 days  from  the  date  of receipt  of correction request from the tax-payer.

Conditions:

The changes can be made by the banks, subject to following conditions:

i.          Correction in Name is not permitted.

ii.         Any combination of correction of Minor Head and Assessment Year together is not allowed.

iii.       PAN/TAN correction  will be  allowed  only when  the  name  in the  challan matches with the name as per the new PAN/TAN.

iv.        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.

v.         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.

vi.        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.

Procedure:

i.          The tax-payer has to submit the request form for correction (in duplicate) to the concerned bank branch.

ii.         The tax-payer has to attach copy of original challan counterfoil.

iii.       In case of correction  desired for challans in Form 280, 282, 283, the copy of

PAN card is required to be attached.

iv.        In case of correction  desired  for payments  made  by a tax-payer (other  than an individual), the   original authorization  with seal of the non-individual tax- payer is required to be attached with the request form.

v.         A separate request form is to be submitted for each challan.

Procedure of challan correction by Assessing Officers

(both physical and e-payment challans)

After the  window  period  available  to  banks  for challan correction,  the  assessee  can make a request for correction  to his or her assessing officer, who is authorized  under the departmental OLTAS application to make such correction in challan data in bonafide cases, to enable credit of the taxes paid, to the concerned  assessee.

Format of application to bank for challan correction to be requested by the taxpayer

To

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]

Sir/Madam,

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

Date

Note:

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.