TDS Challan interst amount wrongly paid as surcharge.

While paying for TDS interest amount was wrongly paid in surcharge? Please guide how to correct the same.

Replies (6)
Quick Summary
If TDS interest is wrongly paid as surcharge, correct it via challan correction. Within 7 days bank can fix it, after that approach AO or use income tax portal. Fields like amount breakup and head can be revised.

Online correction 

Or

Submit details to JAO  for correction 

Within 7 days → bank correction possible.

After 7 days → jurisdictional AO approval required.

You can correct:

  • Major head

  • Minor head

  • Assessment year

  • Amount breakup

Is there any way to correct online ??

Income tax portal

Services

Challan correction 

Try if possible online by visiting i.tax portal

Challan corrections are possible even after 7 days. Within 7 days, approach the bank branch directly. After 7 days, log in to the income tax e-filing portal under Services > Challan Correction to request a minor head change (moving the amount from surcharge to interest). One thing to also check: from April 1, 2026, the Income Tax Act 2025 uses new TDS section codes in challans, and a mismatch in section or minor head can cause reconciliation issues in TRACES. This [section mapping guide for FY 2026-27](https://taxgarden.in/blog/income-tax-act-2025-section-mapping-old-vs-new-india) shows the correct codes to use going forward.

Challan head mismatch (interest entered as surcharge) is a known issue. Here is how to fix it.

TRACES Online Correction – Check Eligibility First

Log in to TRACES, go to Statements/Payments, then Challan Correction. Select the relevant challan and check which fields are editable. TRACES allows certain corrections online (PAN, Assessment Year, Amount), but payment head corrections (interest vs surcharge) are typically not available online. If the field is greyed out, you will need the AO route.

AO Correction – The Main Path for Payment Head Changes

Submit a written application to your jurisdictional Assessing Officer:

• Attach the original challan copy (screenshot from TRACES)
• Explain the error: interest of ₹[amount] was entered under the surcharge head
• Request correction to move the amount to the interest head

The AO raises a rectification, and the corrected credit appears in 26AS once processed.

What Not to Do

Do not pay the interest amount again before the AO confirms the correction status. If you repay and the original payment is also later corrected, you will have an excess credit that requires a refund claim.

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