Income Tax Payment- Checks & Balances

When paying self-assessment or advance tax, it’s critical to double-check that the assessment year and code for the tax category you’ve chosen are valid. If you choose the incorrect option, there may be a mismatch between the taxes you pay and the amounts shown on Form 26AS for a given fiscal year. As a result, you won’t be able to claim a tax credit for it when you file your income tax return (ITR).

Here’s how taxes are paid and how to fix any problems you could make when paying self-assessment tax.

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What are the most common mistakes made by taxpayers when it comes to paying taxes?

Paying advance or self-assessment tax can be done in two ways:

(1) Through the NSDL website

(2) Paying taxes with physical challans at a bank branch.

Taxpayers frequently make the error of picking the incorrect assessment year for which tax payment is due, according to chartered accountants. The assessment year follows the financial year for which the ITR must be lodged.

For example, the assessment year for FY 2020-21 is 2021-22. As a result, the tax you pay now for FY 2020-21 will be known as self-assessment tax. Furthermore, when making the payment, you must pick AY 2021-22. If you are submitting advance tax for the current fiscal year, you should choose AY 2022-23 because you will be depositing for FY 2021-22, which is the current fiscal year for which ITR will be submitted next year.

What is the best way to fix a mistake?

Ex-IRS officer and founder of Taxbuddy.com, an ITR filing service, Sujit Bangar says, “If a mistake was made when paying taxes, the easiest approach to fix it is to contact the jurisdictional assessing officer or send him an email asking correction. The inauguration of the ‘Challan Correction’ service is noted on the newly created income tax portal. This service, however, has yet to be made available to taxpayers. Once this service is activated, an individual can use his or her registered account to repair challan errors online.”

The information on the ‘Challan Correction’ service may be found in the ‘Help section’ of the new income tax portal.

Haven’t received an Income tax refund yet? Do this

How can you find out who your assessing officer is?

As previously stated, the assessing officer can make changes to the tax challan details. To find out who your assessing officer is, follow the steps below on the new income tax portal:

Step 1: Go to https://www.incometax.gov.in/iec/foportal to access the new income tax portal.

Step 2: Select ‘Know your AO’ from the ‘Services’ tab on the webpage.

Step 3: On your screen, a new webpage will appear. Fill up your PAN and phone number. Continue by pressing the enter key.

Step 4: Your cellphone number will receive a one-time password (OTP). The OTP is only good for 15 minutes. Click ‘Validate’ after entering the OTP.

The page will display your assessing officer’s information, including his or her office address and email address. You have the option of sending an email for challan details rectification or physically visiting his/her office for correction.