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If tax is paid offline by physical challan, bank can make certain corrections
December, 03rd 2018

Banks can make certain corrections within a stipulated window from the date of tax payment

While paying self-assessment tax for assessment year (AY) 2019-20, I wrongly mentioned AY2018-19 in ITNS 280. Also, I selected the wrong code (400) under minor head code (MHC). It needs to be 300 for self-assessment tax. My income-tax return for AY 2018-19 has been approved now. There is no pending amount against the minor head (400). How can I make the correction? Is there a way to cancel this transaction and get tax refund or can it be rectified in the next financial year?


As per our understanding of your case, two corrections are required to be made in the tax challan (ITNS280)—change in AY from AY2018-19 to AY2019-20 and change in minor head code from tax on regular assessment (400) to advance tax (100)/ self-assessment tax (300).

As per the challan correction procedure available on the income-tax department’s website, where tax payment is made offline by a physical challan, the taxpayer can apply to the bank for certain corrections, within a stipulated window from the date of tax payment—seven days for correction only in AY and three months for correction only in MHC. However, a combination of correction of AY and MHC cannot be processed by the bank.

Therefore, in your case, you can make an application in writing to your respective jurisdictional income-tax officer (ITO) and request him to correct the errors. The ITO can rectify these at his end, in bona fide cases. You may refer to your Form 26AS to verify whether the requisite corrections have been made in the tax records.

Alternatively, you may wish to revise your tax return for AY2018-19 and seek a refund of the taxes wrongly allocated to the said AY. In such a case, you may have to pay the taxes due for AY2019-20 along with applicable interest.

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