While paying income tax you need to take utmost care. Somehow mistakes may happen. One of the common mistakes is selecting wrong assessment year while paying Income Tax. Taxpayers are required to select the Assessment Year starting from the process of selecting the year for filing Income Tax return to the payment of taxes to the government. Many taxpayers get confused and wrongly select FY (Financial Year) instead of AY (Assessment Year). The terms Financial Year and Assessment Year differ from each other and have significant importance in the IT Act, 1961.
Assessment Year: It is the period of 12 months commencing on April 1, every year. Simply, the year in which income is charged to tax is known as Assessment year.
Financial Year: It is the previous year immediately preceding (before) the assessment year. Simply, the year in which Income is earned in known as Financial Year/Previous Year.
What to do if I have selected wrong Assessment Year while paying Income Tax?
Once the taxpayer has filed the Income Tax Return, IT department processes this return. If the taxpayer has selected the wrong AY while filing the return then he will receive intimation from the IT department saying that the Income tax is payable for such and such Assessment Year. If you have received such notice follow the below steps.
In case payment is done through Offline:
- In case payment is done through Offline (i.e., Physical Challan), IT department has allowed a period of 7 days during which the correction in AY (Assessment Year) could be made by the Bank.
- The taxpayer needs to apply for correction to the bank within 7 days of the date of deposit of challan.
- Bank will consider the said application & correct the mistake accordingly.
- If the taxpayer did not apply for correction to the bank within 7 days, he has the option to apply to his Assessing Officer (AO) for the correction in challan.
- AO has the powers to make a correction in your return, after seeing your rectification request.
In case payment is done through Online:
- In case payment is done through Online, the assessee has to submit a rectification of a return under section 154 to his concerned Jurisdictional Assessing Officer and request him to correct the details.
- AO will make a correction in your return, after seeing your rectification request.
- The AO will adjust your previous year tax payments against this year’s notice and tax dues.
How to find my Jurisdictional Assessing Officer?
- To find your Jurisdictional Assessing Officer (AO) Click Here
- There you need to enter your PAN number and Captcha and click on Submit.
- Then it will give the Jurisdiction details for your PAN.