Friday 18 May 2012

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
head, Minor head,
Nature of payment)
Within 3 months
The time window for correction by the bank is 7 days from the date of receipt of
correction request from the tax-payer.
Page 2 of 3
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 taxpayer
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.
Page 3 of 3
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

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