TDS Challan: Under On Line Tax Accounting System (OLTAS), the Physical Challans of all Direct Tax payments received from the deductors or taxpayers are digitized on the daily basis. The digitization of physical challans done by the collecting banks and the data transmitted to Tax Information Network(Tax Information Network) through link cell. At present, the banks are permitted to correct data relating to three fields only the i.e. amount, major head code and name. The other errors can be rectified only by the assessing officers.
TDS Challan Correction Mechanism
The assessee enters all the challan fields at the time of online payment or in physical challan payments. But, sometimes accidentally the necessary information entered while online payment has any mistake/error. Otherwise, it may happen that while uploading the information on tax network bank had made the mistake or errors. For all that errors can correction is possible? Here you can check the procedure which helps you to correct all such mistakes or errors.
Process of challan correction by banks – Physical challans
To possible method in this scheme, a TDS Challan Correction Mechanism for physical challans has been put in place. Under this Challan correction mechanism, the income tax payments made on or after 1st September 2011. The following fields can be altered through the concerned bank branch. Assessment Year Major Head Code Minor Head Code TAN or PAN Total Amount Nature of payment (TDS Codes).
- Assessment Year.
- Major Head Code.
- Minor Head Code.
- TAN or PAN.
- Total Amount.
- Nature of payment (Tax Deduction Scheme Codes).
On the request of correction by the taxpayer, the branch bank officer can make the correction. The period for such is as follows. The time window for the modification request by the assessee is as follows.
|Correction required in Field||Period of Correction Request (from Challan Deposit Date)|
|TAN or PAN||7 days.|
|Assessment Year||7 days.|
|Other fields (Minor head, Major head, Nature of payment)||Within three months.|
The time window for modification by the bank is seven days from the date of receipt of correction request from the Assessee.
The changes( modifications) can be made by the banks, subject to the following conditions.
- The Correction in Name(Assessee) is not permitted.
- Any combination of correction of Minor Head & Assessment Year together is not allowed(permitted).
- The PAN or TAN correction will be authorized only when the name in the challan matches with the name as per the new Permanent Account Number or Tax Deduction Account Number.
- The change of amount in challan will be permitted only on the condition that the amount so corrected is not different from the amount received by the bank and credited to Government Account.
- 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.
- For a single challan, the modification is permitted only once. However, where first correction request is made only for amount, a second correction request will be allowed for correction in other fields.
TDS Challan Correction Procedure
Let us take a look at the TDS Challan Physical Correction Procedure, given below.
- The taxpayer has to submit the request form for correction (in duplicate) to the concerned bank branch.
- The assessee has to attach a copy of original challan counterfoil.
- In case of correction desired for challans in Form 280, 282, 283, the copy of PAN card is required to be attached
- In the case of correction desired for payments made by a taxpayer (other than an individual), the original authorization with the seal of the non-individual taxpayer is required to be attached to the request form.
- An individual request form is to be submitted for each challan.
Procedure for TDS Challan Correction by Assessing Officers(A.O)
For Physical and e-Payment Challans
After the window period available to banks for challan correction, the taxpayer can make a request for correction to his/her Assessing Officer(A.O). Then the Assessing Officer, who is authorized under the central On Line Tax Accounting System (OLTAS) application to make such correction in challan data in bonafide cases, to enable credit of the taxes paid, to the concerned assessee.
Key Points to remember while updating TDS challan
- Identify the TDS challan to be updated by the following,
- It’s sequence number as per regular statement.
- Challan Identification Number (CIN), deposit amount as per the regular account.
- Update the TDS challan detail as required.
- Along with the updated values, the correction statement should contain the value of the Challan Identification Number and deposit the amount as per regular statement as well.
- Example: To correct challan serial number from 013 to 014 in the sixth challan of the official statement filed by you, the steps as under need to be followed
1. Identify the challan by the sequence number as well as the CIN and deposit amount as per regular statement.
2. Update the value of the field challan serial number to 014.
3. Ensure that the value in the field Last Bank challan no is 013, i.e. as per official statement.
Download TDS Challan Correction Application
You can download TDS Challan format for Correction Application form.