Taking adequate caution when paying taxes is a must, but mistakes do happen. A very common mistake is choosing the wrong assessment year at the time of making payment.
You can quickly go over the steps to pay taxes here.
Regular information like name, address, PAN number is required to be submitted along with mentioning the ‘Assessment year’ for which payment is being made. Assessment year means the year in which your income shall be ‘assessed’. It’s the year that follows the financial year for which you are submitting a return. For example – when you are paying taxes for or submitting return for financial year 2014-15, your assessment year shall be 2015-16. 2015-16 is the assessment year in which income of financial year 2014-15 shall be assessed and return submitted. Otherwise assessment year has no practical significance. Do make sure you choose it correctly.
In case assessment year has been chosen incorrectly by you, here is what you need to do –
- Mention the payment details in your current tax return (even though tax has been paid for incorrect year)
- When your return is processed by the AO, the AO is likely to issue you a notice since the tax details do not match up with his records
- Respond to AO with the error in tax payment details. You may have to submit a rectification of a return under section 154 – read here to understand more about rectification process.
- Once your rectification request has been looked at by the AO, he has the powers to make a correction in your return.
- The AO will adjust your previous year tax payments against this year’s notice and tax dues.
Don’t worry if you have made a mistake while paying tax – write to us firstname.lastname@example.org and our experts will help you in case you are facing an issue.
Do remember to enter your assessment year correctly 🙂