IT Department introduces user friendly Challan Correction feature for ITR

The Income Tax Department has added a user-friendly online Challan Correction function to the Income Tax Return (ITR) portal in an effort to improve the efficiency of the income tax payment process. This function intends to quickly correct inaccuracies in income tax challans.

Taxpayers have seven days from the date of their income tax payment to take advantage of this new functionality. After this time, taxpayers must use the conventional offline approach for revisions.

The online Challan Correction option is only available for challans from Assessment Year (AY) 2020-21 (Financial Year 2019-20) and thereafter. Individuals making tax payments for AY 2020-21 and following years will be able to remedy particular errors online, reducing the need for actual visits to income tax offices.

Taxpayers can use the ‘Challan Correction’ feature to correct three critical details on their income tax challans:

• Assessment Year
• Major Heads (e.g., code 0021 for income tax for individuals)
• Minor Heads (e.g., advance tax)

“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,” according to the income tax e-filing website.

Taxpayers should ensure that they meet the following requirements before using the online Challan Correction feature:

Register on the ITR e-filing portal.The challan that needed to be corrected should not have been utilised while filing the ITR.There should be no outstanding requests for challan corrections.

Here are the steps to correct a challan online:

Step 1: Log in to e-filing ITR portal.

Step 2: On the new page that appears, click “Create Challan Correction Request”.

Step 3: Choose the option that needs to be corrected:

• Change in assessment year
• Changes in tax applicable (major head)
• Change in payment type (Minor head)

Step 4: Give the details of the income tax challan that needs to be corrected, such as the assessment year or the Challan Identification Number (CIN).

Step 5: A new webpage will open depending on the choice selected. If a CIN number is entered, the challan details will be presented. Otherwise, if an assessment year (AY) was chosen, a list of all challans associated with that AY will be displayed. Choose the appropriate challan for repair.

Step 6: Enter the correct details of the selected option.

Step 7: Verify the tax challan correction via one of the following methods: Aadhaar OTP, digital signature certificate (DSC), or electronic verification code (EVC) via net banking, Demat, or bank account. The income tax e-filing website will display a success message along with the transaction ID after successfully e-verifying the correction. Save the transaction ID in order to track the status of the rectification request.