Answer

ITR

Demand open due to wrong challan year or head

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  1. Facts

    The e-Filing portal has a Challan Correction Request service for challans paid through e-Pay Tax, which lets you correct the assessment year or minor head within the allowed time. Older or bank-paid challans may need the officer or bank to correct.

  2. Provisions and law

    • Sec 156, Income-tax Act 1961 (now Sec 289)When tax, interest, penalty or other sum is payable after an order, the officer serves a notice of demand.
    • Sec 220, Income-tax Act 1961A demand is payable within 30 days of service of the notice of demand; simple interest of 1% a month runs after that; the officer may allow more time or instalments, and may treat you as not in default while an appeal is pending (2025 Act number to be confirmed).
  3. Analysis

    If you paid ₹25,000 against a demand for AY 2024-25 but chose AY 2025-26, the demand stays open and the payment sits in the wrong year. A challan correction request moves it to the right year and head, after which the demand clears. Do not pay again, because that only creates an excess you then have to claim back.

  4. Conclusion

    1. Download the challan and note the error.
    2. Open the Challan Correction Request service on the portal.
    3. Choose the challan and the field to correct.
    4. Submit and track the request status.
    5. Once corrected, check that the demand shows paid.

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Notice of demand, Sec 156 (now 289)

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