“HOW TO CARRY OUT THE CORRECTION IN THE TAX PAYMENT CHALLANS?”

TAX TALK-20.05.2013-THE HITAVADA

TAX TALK  

BY CA. NARESH JAKHOTIA

Chartered Accountant

“HOW TO CARRY OUT THE CORRECTION IN THE TAX PAYMENT CHALLANS?”

Query 1]

While filing the online tax return for the period Assessment Year 2011-2012, we came to know of PAN being wrongly entered in the Tax Challan. Can this amount so deposited by an error be adjusted in subsequent return/statement or refund can be claimed by us? Kindly guide us on the process involved? [MPBPL- A R Temurnikar- miners_bookshop@yahoo.co.in]

Opinion:

There are numerous instances where there is an error while making payment of Tax either electronically or manually. To rectify these errors, Income-Tax Department has issued new guidelines effective 01-09-2011 which allows Banks to correct physical challans only. For correction in electronic challans, request will have to be made to the concerned Assessing Officer. For general benefit, I am elaborating the the procedure for correction in the tax challan.

a] Correction in physical challans:

Fields that can be corrected by bank:

·                  Assessment Year

·                  Major Head Code

·                  Minor Head Code

·                  TAN/PAN

·                  Total Amount

·                  Nature of payment (TDS Codes)

Time frame for correction request:

-         Request for correction has to be made within 7 days of deposit of challan for correction in PAN, TAN and Assessment Year

-         For Major head, minor head and nature of payment, request can be made within 3 months of deposit of challan.

Remedy available after time frame is over:

- After lapse of time frame, request can be made to the Assessing Officer.

Time frame given to bank to carry out correction:

-         After receipt of request, bank must carry out the correction within 7 days.

Other conditions for correction:

-         Correction in name is not allowed

-         Any combination of correction of Minor Head and Assessment Year together is not allowed

-         PAN/TAN correction will be allowed only when the name in the challan
matches with the name as per the new PAN/TAN.

-         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.

-         For a single challan, correction is allowed only once. However, where 1^st correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields.

-         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 for requesting correction:

-         The tax-payer has to submit the request form for correction (in duplicate) to the concerned bank branch.

-         The tax-payer has to attach copy of original challan counterfoil.

-         In case of correction desired for challan in Form 280, 282, 283, the copy of PAN card is required to be attached.

-         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.

-         A separate request form is to be submitted for each challan.

B] Correction in Electronic Challans:

For correction in electronic challans and for correction after the time period for application to bank lapses in physical challans, a written request in prescribed format has to be made to the Assessing Officer. Assessing Officer has power to rectify the error , in bona fide cases, to enable credit of tax to assessee

Form of application to bank:

Income-tax department has given a format in which application can be made to the bank.

The form can be accessed at www.nareshjakhotia.blogspot.com or http://www.incometaxindia.gov.in/archive/LeftMenu_ChallanCorrectionMechanism_26

82011.pdf.

In your specific case, you have to make an application to your Assessing Officer elaborating the facts of the case along with all the relevant documents to prove the payment.

Query 2]

For the FY:2012-13 my wife & me jointly applied for income tax rebate (50 % share each) on home loan, as the property and loan are jointly basis. We have also submitted home loan share certificate to our employer.  Now, for the F.Y. 2013-14, may I eligible for 100 % rebate on home loan, as my wife has decided not to claim for rebate on home loan. Can I have to go for another home loan share certificate (i.e., 100% share)? Kindly suggest the procedure with your valuable guidance. [S Y Gajbhiye - syg6147@gmail.com]

Opinion:

Ownership is a condition precedent for claiming deduction towards Interest u/s 24(b) and towards Principal Repayment u/s 80C. It may be noted that Right to claim deductions originate from ownership. Without ownership, deduction would not be admissible. In your case, it appears that you have 50% share ONLY in the loan as well as in the property. Simply, because your wife is not claiming the deduction doesn’t make you eligible to claim the deduction. Apparently, you are entitled for 50% deduction only.