On-Line Tax Accounting System Correction Scope and Procedure

The On-Line Tax Accounting System (OLTAS) was introduced in April 2004, for the accounting and reporting of receipts and payments of the Direct Taxes through various Banks. Direct Taxes include Income and Corporate Tax paid by individuals and organisations. The collected data is updated by the banks on to the Tax Information Network (TIN). The National Securities Depository Ltd handles the TIN operations.

After submitting the details to the bank, a taxpayer can tear-off the counterfoil of the submitted challan and get it duly sealed by the bank with the unique Challan Identification Number (CIN). The sealed counterfoil is handed over on the spot to the customer if the amount is paid in cash. If the amount is paid by Cheque or DD then the counterfoil is held by the bank till the amount is realized.

The Unique CIN Number

These challans are available with Income Tax officers and private vendors. It is also available online. The unique CIN would include a 7-digit bank branch code, a 5-digit serial number of the challans issued that day in that particular branch, and the date (dd/mm/yy) of issue of the challan. This CIN number has to be quoted in the Tax returns as proof of payment and should be used for all further communications. The taxpayer need not attach the copy of the challan counterfoil with the Tax Returns papers, but only have to mention the unique CIN number on the papers.

This procedure is very beneficial for the taxpayer as the taxpayer only has to file a single sheet challan instead of the earlier multiple sheet, and he gets an acknowledgment of the payment on the spot. These details can also be tracked online.

Fields for Corrections

The Tax Return data given by the taxpayer is collected and entered digitally by the receiving banks and transferred to TIN through a link cell. There is bound to be errors in the filling and entering of the data both from the taxpayer’s end and the collecting bank’s end.

Till Sep 2011, the concerned banks were only allowed to make corrections in three heads: 1) the amount; 2) major head code; and 3) the name. Only an assessing officer could correct the other errors. But since, a new system is in place. Under this new system, the following corrections can be made by the receiving banks for tax returns filed on or after 1st Sep 2011:

1) Assessment Year

2) Major Head Code

3) Minor Head Code

4) TAN/PAN

5) Total Amount

6) Nature of payment (TDS Codes)

The banks are advised to make the necessary corrections within 7 working days from the date of receipt of correction request from the taxpayer. If the taxpayer needs further help then he can approach the Assessing Officer (AO) after the expiry of the stipulated 7 days’ window period. The AO is authorised by OLTAS to make any corrections after due validation of the request.

Procedure to be Followed

There are certain procedures that need to be followed while correction requests are made:

1) A copy of the original challan counterfoil has to be attached.

2) The request form has to be submitted to the concerned bank branch.

3) Copy of PAN card has to be attached for challan nos: 280, 282 and 283.

4) In case of organisations, the authorization seal has to be stamped on the request form.

5) A separate form of request has to be submitted for each challan.

Conditions Apply

There are certain conditions that apply in case of corrections:

1) Correction of the Name is not allowed.

2) PAN and TAN correction will be allowed only if the Name entered in the Challan matches with that on the corrected PAN/TAN.

3) The correction of the amount will be allowed only if the corrected amount is the same as the amount received by the bank.

4) Combination of corrections of Minor Head and Assessment Year cannot be made together.

5) Only one correction is allowed per challan. But if the correction request was made for the amount, then a 2nd correction is allowed for any other field.

6) A correction request is either fully allowed or fully rejected. There are no partial corrections allowed. Which means, if any one request made does not pass the validation test then all the requests are rejected together.