By TIOL News Service

NEW DELHI, SEPT 29, 2017: PAYING taxes by using wrong challans is a common error which a large number of taxpayers often make. It happened even in the case of Prime Minister Garib Kalyan Yojana and the CBDT was flooded with pleas to allow correction of such challans as they could not make declaration in Form No 1. Exercising powers u/s 119 of the I-T Act, the Board has now taken a decision to permit such corrections through Systems and allowing the declarants to file Form 1 after making the corrections within a specified time limit so that their declaration gets regularized under PMGKY.

However, where there is anomaly in PMGKD payment as well, the relaxation shall not be applicable for the obvious reasons. For facilitating correction of challans in respect of PMGKY Scheme and subsequent regularization of filing of Form-1, the jurisdiclional PrCsIT/CsIT shall be required to submit their recommendations in such cases pending with them by 15.10.2017 to ADG (Systems)-2, Directorate of Income-tax (Systems). The type of challan errors which can be corrected are:

a) Change of Assessment Year to 2017-18;

b) Correction in PAN No.;

c) Change of Major Head from (0020), (0021) or {(0028) in IITNS 286} to {(0028) in ITNS 287, PMGKY challan};

d) Change of Minor Head from (100), (300), (400) or (111) to {(112) in ITNS 287, PMGKY challan}

The correction would nol apply to correction of challans in a vice-versa manner, i.e. challan for PMGKY sought to be used for the purposes of making payments towards Advance tax, Self-assessment Tax & Regular-assessment Tax.

Several representations have also been received requesting for correction of challan which was erroneously used for PMGKY payment whereas the same was for the purpose of payment of second installment of IDS Scheme, 2016 by the declarant who had filed a valid IDS declaration. In consideration of the matter, it has been decided that a PMGKY payment would be allowed to be converted into an IDS payment in which case the Major Head, Minor Head and Assessment Year, if required may be changed.

(See F.No.225/231/2017-ITA-II )