Excess Amount in Challan for Updated Return

Please file the updated return ITR-U for your excess challan amount adjustment 

in ITR-U, one cannot claim excess tax paid as refund... I donot think thats the solution.... 

Can I utilise the excess in upcoming AY?

If your colleague has mistakenly deposited an excess amount of ₹1,00,000 instead of the required ₹50,000 for the updated return for AY 22-23, here are the steps to claim a refund or adjust the excess payment:

1. Claiming a Refund

Your colleague can claim a refund of the excess tax paid under Section 237 of the Income Tax Act. Here's how to proceed:

File Income Tax Return (ITR): Ensure that the ITR includes the correct taxable income and reflects the excess payment. The excess amount should be shown in Form 26AS.

Verification: The refund will be processed by the Income Tax Department upon verification. It’s essential that the excess amount is correctly reflected in Form 26AS.

Refund Process: Generally, once the ITR is filed and verified, the refund process is initiated by the department. Your colleague does not need to file a separate claim for refund; it will be automatically processed if there is an excess payment.

2. Adjusting Excess Payment Against Future Liabilities

If your colleague prefers to adjust the excess payment against future tax liabilities instead of claiming a refund:

Carry Forward: The excess amount can be adjusted against future tax payments. This means that when filing taxes for the next assessment year (AY 23-24), your colleague can deduct this excess amount from any tax due.

3. Important Considerations

Ensure that all necessary documentation is in order and that the return is filed before March 31, 2025, to avoid any penalties.

If opting for a refund, keep track of any communication from the Income Tax Department regarding the status of the refund.

4. Filing Deadline

Make sure to complete these steps before the deadline of March 31, 2025, to ensure compliance and avoid any issues with tax filings.

By following these steps, your colleague can effectively manage the excess payment and ensure that their tax obligations are met correctly.

Originally posted by : MPR Sanjay Kumar
	If your colleague has mistakenly deposited an excess amount of ₹1,00,000 instead of the required ₹50,000 for the updated return for AY 22-23, here are the steps to claim a refund or adjust the excess payment:   1. Claiming a Refund Your colleague can claim a refund of the excess tax paid under Section 237 of the Income Tax Act. Here's how to proceed:   File Income Tax Return (ITR): Ensure that the ITR includes the correct taxable income and reflects the excess payment. The excess amount should be shown in Form 26AS.   Verification: The refund will be processed by the Income Tax Department upon verification. It’s essential that the excess amount is correctly reflected in Form 26AS.   Refund Process: Generally, once the ITR is filed and verified, the refund process is initiated by the department. Your colleague does not need to file a separate claim for refund; it will be automatically processed if there is an excess payment.   2. Adjusting Excess Payment Against Future Liabilities If your colleague prefers to adjust the excess payment against future tax liabilities instead of claiming a refund:   Carry Forward: The excess amount can be adjusted against future tax payments. This means that when filing taxes for the next assessment year (AY 23-24), your colleague can deduct this excess amount from any tax due.   3. Important Considerations Ensure that all necessary documentation is in order and that the return is filed before March 31, 2025, to avoid any penalties.   If opting for a refund, keep track of any communication from the Income Tax Department regarding the status of the refund.   4. Filing Deadline Make sure to complete these steps before the deadline of March 31, 2025, to ensure compliance and avoid any issues with tax filings.   By following these steps, your colleague can effectively manage the excess payment and ensure that their tax obligations are met correctly.

But as per the provisions refund isn't allowed in case of Updated return. When I attach the challan with the return in WINMAN software the refund shows as zero which should be negative and even in income tax portal I see the warning related to the same saying that the challan amount is more than the tax payable.
So how can I claim refund.

If the ₹1,00,000 challan has not yet been used in the ITR-U, claim only the tax payable (₹50,000) and report the challan details accordingly. The remaining ₹50,000 should appear as a tax credit/refund claim, subject to the return being processed and the applicable rules. It cannot simply be carried forward and set off against a future year’s tax.

If the full challan amount has already been claimed or the return filed, first check the challan and return status on the income-tax portal; the remedy depends on whether the return is still editable and how the payment was reported. A refund claim in an updated return is restricted: confirm that claiming this excess does not make the ITR-U a return that results in or increases a refund. The AY-specific filing deadline and portal availability should also be verified before filing.

For an ITR-U, reconciling the challan credit with the tax computation is a key filing step. Manual checks are difficult at scale; automation reduces repetitive work while professional judgment stays in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For a walkthrough tailored to your filing workflow, message us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1