Procedure of tax payment in case of revised return

This query is : Resolved

Rishabh Saxena (Querist)
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29 February 2016 An assessee filed the return before due date claiming a refund of Rs 20000/- for which refund was issued by tax department. Subsequently the assessee revised the return whereby he claimed refund on 12800/- only. In such a case what is the procedure to payback the excess refund received earlier? Shall the assessee wait till CPC raises demand or pay the taxes on his own?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 February 2016 Better you pay the tax before revising the return to avoid interest and penalties

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Rishabh Saxena

Rishabh Saxena (Querist)
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29 February 2016 The return has already been revised claiming refund of 12800/-. Shall the assessee deposit the challan for "tax on regular assessment" for the difference amount today only?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 In the case where an assessee has filed a revised return claiming a reduced refund amount compared to what was initially issued, and there is an excess refund that needs to be paid back to the tax department, here's the procedure to follow:

### **Procedure to Payback Excess Refund in Case of Revised Return**

1. **File the Revised Return:**
- Ensure that the revised return is filed correctly and reflects the reduced refund amount. The revised return should clearly indicate the new refund claim of ₹12,800/-.

2. **Calculate the Excess Refund:**
- Determine the excess refund amount that needs to be paid back. In your case, this is ₹20,000/- (initial refund) minus ₹12,800/- (revised refund), which equals ₹7,200/-.

3. **Deposit the Excess Amount:**
- **Prepare a Challan:**
- Use the challan for "Tax on Regular Assessment" (Challan No. 280) to deposit the excess amount. The relevant section for this payment would typically be "Self-Assessment Tax" if it is before any demand is raised by the CPC.
- **Fill in the Details:**
- Enter the amount of ₹7,200/- in the challan under the appropriate heads. Ensure to select the correct assessment year and ensure the payment is correctly attributed to the current financial year.
- **Make the Payment:**
- Pay the amount through the online payment gateway or at a designated bank branch as per the guidelines provided by the Income Tax Department.

4. **Intimate the Tax Department:**
- **Refer to the Challan Details:**
- Once the payment is made, retain the challan receipt and the reference number of the payment.
- **Update Records:**
- In the future, if any communication is received from the CPC or the tax department regarding the excess refund, provide the challan details as evidence of payment.

5. **Monitor the Status:**
- **Check CPC Communication:**
- Keep an eye on any communications from the Central Processing Centre (CPC) to ensure there are no further discrepancies or actions required.
- **Confirm Adjustment:**
- Ensure that the excess refund has been adjusted and no further action is needed on the part of the assessee.

### **Key Points to Note:**

- **Proactive Payment:** It is advisable to proactively pay the excess amount rather than waiting for a demand notice from CPC. This helps in avoiding any interest or penalties that might accrue due to delay.
- **Challan Details:** Ensure that the details entered in the challan are accurate and match the revised return details.
- **Documentation:** Keep all receipts and correspondence related to the payment and revised return for future reference.

By following these steps, you ensure that the excess refund is properly paid back to the tax department and that the revised return accurately reflects your tax situation.