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How to correct income tax challan mistake online on e-filing portal

Date: December 04, 2023
# News

While paying income tax, it is important to ensure that all the information such as assessment year, challan number, etc. are correctly filled in the income tax challan. Now, the income tax department has launched a new feature on the income tax return (ITR) portal to correct mistakes in the income tax challan. Do keep in mind that you can only use this feature within seven days of making the income tax payment. If the mistake has to be corrected after seven days, the old process (offline method) has to be followed

According to Milin Bakhai, Associate Partner, N.A. Shah Associates, a Mumbai-based chartered accountancy firm, “The new feature of online challan correction is applicable in respect of challan pertaining to AY 2020-21 (FY 2019-20) and onwards. This means that if an individual is making a tax payment related to AY 2020-21 or any year after that now and a mistake has been made. In such a case, specific corrections can be done online within a specified time period instead of visiting the income tax office.”
 

What is the information that can be corrected?

The new online feature allows taxpayers to correct only three details in the income tax challan. An individual can use 'Challan Correction' option to correct details like assessment year, major heads (code 0021 for income tax for other than companies, etc), and minor heads (like advance tax, etc) in their tax payment challans.

According to the income tax e-filing website, “Challan correction requests can be submitted only for minor heads: 100 (Advance tax), 300 (self-assessment tax) and 400 (demand payment as regular assessment tax) and for their corresponding major heads through the e-filing portal.”

Can multiple corrections in a single challan be made?
“It is possible for a taxpayer to submit multiple correction requests in a single challan by selecting all the three options which exist on the correction webpage, i.e., AY, tax applicable (major head) and type of payment (minor head),” says Chirag Chauhan, founder, cachauhan.in, a tax consultancy website.

How to use the challan correction feature on the ITR filing portal?

Before using the challan correction online feature, a taxpayer should know the following prerequisites:

  • The taxpayer should be registered on the e-filing ITR portal.
  • Challan which needs correction should not be used while filing ITR. This means that the taxpayer should not have used the incorrect challan details in the ITR filed.
  • Challan correction requests should not be pending with any other authority like banks, etc.

Here’s a step-by-step guide on how to put in the challan correction request online:

Step 1: Visit ITR filing (https://www.incometax.gov.in/iec/foportal/) website and login to your account. Under the ‘Services’ column, select the ‘challan correction’ option.ITR portal

Step 2: A new webpage will open. Here select ‘create challan correction request’.

Challan correction webpage

Step 3: A new webpage will now open. The income tax portal will ask you to select the appropriate option that needs correction. A taxpayer can select -a) Change in assessment year, b) change in tax applicable (Major head) and c) Change in type of payment (Minor head). Once selected, click on continue.

Challan correction details

Step 4: The next step will ask the taxpayer to provide details of the income tax challan that needs correction. Here an individual will have to mention either the assessment year or challan identification number (CIN). Click continue after this.

Correction details

Step 5: Depending on the option selected, a new webpage will open. If an individual has given a CIN number, then respective challan details will show. Otherwise, if assessment year (AY) was selected, all the challans relating to that AY will be shown as a list. One needs to select the respective challan which needs to be corrected. Click on continue once the selection is done.

Challan selection

Step 6: Now an individual needs to enter the correct details of the option selected earlier. Click on continue. In the picture shown below, the example of correcting the assessment year was taken.

Challan details

Step 7: Once the correct details are entered, an individual will be required to verify the correction in the tax challan. The verification can be done using Aadhaar OTP, digital signature certificate (DSC) or using an electronic verification code (EVC) through net-banking, Demat and bank account. Click continue after selecting the verification option.

Verification of challan correction request

Step 8: Once the correction is successfully e-verified, the income tax e-filing website will show the success message along with the transaction ID. Keep this transaction ID handy to track the status of the correction request submitted.

Transaction ID of challan correction request

How to track the status of the challan correction?
To view the status of the tax challan correction, a taxpayer needs to login to the ITR portal using their credentials and select the ‘challan correction’ button under the services tab. Once a correction request has been raised, this webpage will show the status of the challan correction.

What is the time limit for the challan to get corrected?
“The income tax department has not yet specified how much time will the assessing officer take to correct the challan. However as per my experience generally the correction request would be made in 15 days. If a long time period has passed from the time the correction request was submitted, then taxpayers can lodge a grievance complaint or call the CPC helpline,” says Chauhan.

Challan status checking dashboard