What if I have selected wrong Assessment Year while paying tax?

The terms Financial Year and Assessment Year have significant importance in the Income-tax Act, 1961. Both the terms have different meanings and usage. Starting from the process of selecting the year for filing Income-tax return to the payment of taxes to the government, taxpayers are required to select the Assessment Year. However, many taxpayers get confused and wrongly quote Financial Year in place of Assessment Year.

Once the Income-tax return is filed by the taxpayer, Income-tax department processes this return. The real problem starts when the taxpayer receives intimation from the Income-tax department saying that the tax is payable for such and such Assessment Year. The taxpayer checks his records and then he realizes that the year which he had mentioned while paying the online taxes was actually wrong.

If you have received any such notice, Don’t worry!!!┬áHere are the steps you need to follow so to resolve the issue.

A] If the payment has been made by physical challan-

i] Correction within 7 days from payment of tax :

Many taxpayers make the tax payment through physical challans. In such cases, Income-tax department has allowed a 7 day period during which the correction in Assessment Year could be made by the Bank. The taxpayer needs to apply for correction to the bank within 7 days of the date of deposit of challan.
You may refer the Draft format of challan correction application to the bank.

Bank will consider the said application and correct the mistake accordingly.

ii] Correction after 7 days from payment of tax :

In case taxpayer realises the mistake after 7 days, then he is required to apply to his Income-tax officer for the correction in challan.

You may refer the Draft format of challan correction application to the Assessing Officer.

The Income-tax officer will consider the said application and correct the mistake accordingly.

Click here to know about Jurisdictional Assessing Officer (Income Tax Officer)

B] If the payment has been made by online challan-

If the payment of taxes is made by the taxpayer by way of online banking, the taxpayer is required to apply to his Jurisdictional Assessing Officer (Income-tax officer) and request him to correct the details.

You may refer the Draft format of challan correction application to the Assessing Officer.

The Income-tax officer will consider the said application and correct the mistake accordingly.

When the demand against my name will be dropped?

On making the application to the Assessing Officer, the necessary corrections will be made by him in the Income-tax details of the taxpayer. Taxpayer may refer Form 26AS to ensure that requisite corrections have been made in his tax records. It may take around one weeks period for corrections to get reflected in Form 26AS.

Once the taxpayer ensures himself that the correction has been done, he may proceed to file an Online Rectification application claiming that the Income-tax Return for the saidAassessment Year shall be re-processed. Re-processing of return may take around one months time.

Click here to know about How to apply for online rectification?.

Once the Income-tax Return is re-processed, the demand against the taxpayer should automatically get dropped. You may check the same into your login as well.

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What if I have selected wrong Assessment Year while paying tax?
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The terms Financial Year and Assessment Year have significant importance in the Income-tax Act, 1961. Both the terms have different meanings and usage. Starting from the process of selecting the year for filing Income-tax return to the payment of taxes to the government, taxpayers are required to select the Assessment Year. However, many taxpayers get confused and wrongly quote Financial Year in place of Assessment Year. Once the Income-tax return is filed by the taxpayer, Income-tax department processes this return. The real problem starts when the taxpayer receives intimation from the Income-tax department saying that the tax is payable for such and such Assessment Year. The taxpayer checks his records and then he realizes that the year which he had mentioned while paying the online taxes was actually wrong.
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