Paid tax online under 300 (Self Assessment) instead of 400 (Regular Assessment)

Phani R 221
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Hi,

For AY 2010-11 i got a demand notice for Rs.1095. I have paid that tax online using 300 in the challan at that time only. (2 yrs back) There was no information in that intimation about which section to use while paying. Now it seems the IT guys are after every penny to finance the government splurge and i got a demand notice again as Reminder 1. Now the surprise is this time they clearly mentioned use '400' otherwise it will not be allowed as credit for demand.

I am sure they found many cases like this, but instead of adjusting at their side,they are happy to send notices. Please advise whati should do now?

challan-number arrears-demand demand-notice self-assessment-tax
1 Answers

It would be better to get challan information corrected to update minor head.

As challan was paid before three months from now, it will only be corrected by assessing officer (AO). Check this file for details: Income Tax Challan Correction Mechanism. It has format of letter to be submitted with AO as well.

Pankaj Batra5212

Thanks Pankaj for the details. Please confirm if below are the correct details to be filled in the letter to the AO. Major Head : 0021 Minor Head: As i filed using Challan 280, i think this field is not applicable. Nature of payment -- This is the one to be corrected from 300 to 400.

Phani R•

Page 3 of PDF link provided has the format: http://www.incometaxindia.gov.in/archive/LeftMenu_ChallanCorrectionMechanism_26082011.pdf#page=3 You need to tick on Minor head code and provide original and new values.

Pankaj Batra•
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