TDSMAN Blog

smart & easy software for eTDS & eTCS returns

TDSMAN Blog - smart & easy software for eTDS & eTCS returns

Reasons to reject the correction in challan detail by TDS-CPC

Rejection reasons pertaining to challan details are as follows:

  • Challan detail record on which correction has been filed does not exist in regular / previous statement
  • In a correction statement, verification keys from challan data should match with the corresponding fields in regular statement
    • Verification keys for Non Nil Statement – Last transfer voucher number, Last Bank-Branch Code / Form 24G Receipt Number, Last date of transfer voucher / bank Challan, Last deposit amount as per challan
    • Verification keys for Nil challan – Last date of transfer voucher number / bank challan, last total deposit amount as per challan
  • If an unmatched challan is being corrected, then the sum of deposit amount of all the active deductee rows in the regular and correction statement and corrected values of claimed TDS interest and claimed TDS Others amount should be less than or equal to Total deposit amount of challan given in statement
  • If a matched challan is being corrected, then available balance amount in the challan should be sufficient for consumption of updated sum of deposit amount of all the active deductee rows in correction and corrected values of claimed TDS interest and claimed TDS Others amount
  • In case of existing matched / partially matched challan, deductor can only update Cheque / DD Number, claimed TDS Interest amount, claimed TDS Others amount and Section code
  • If deductor updates only deductee details, then claimed TDS Interest amount and claimed TDS Others amount as given in the challan should match with the corresponding values present in regular / previous return
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Closure of defaults in Quarterly TDS Statements from Financial Year 2007-08 onwards

CPC(TDS) reminder communication to banks regarding closure of defaults in Quarterly TDS Statements from Financial Year 2007-08 onwards.

The issued communication has been given below:

The Principal Officer
Name: XXXXXXX
TAN: XXXXXXXXXXXX

Please refer to the earlier CPC(TDS) Communication regarding defaults in TDS Statements for different TAN’s associated with your PAN. The Centralized Processing Centre (TDS) has observed from its records that there are Defaults in Quarterly TDS Statements submitted by different TANs associated with your PAN.

The details of the TANs and outstanding Defaults against them as per Financial Year have been provided as annexed with this letter. Form Type and Quarter wise details of the above are also available to you to be viewed online on the web-portal TRACES (www.tdscpc.gov.in) under “Aggregated TAN compliance Report”.

Please note that:

  • Order u/s 201 Intimation u/s 200A of the Income Tax Act, 1961 intimating the outstanding demand for different years has already been sent by Income Tax Department on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement to the relevant deductors (TANs).
  • This information is being provided to you for further necessary action for closure of Short Payment Defaults at the earliest by moving deductee rows/ matching/tagging of Unmatched challans or by payment/ tagging in case of Insufficient challans.
  • This would be helpful for you in complying with the provisions of section 40(a)(ia) of Income Tax Act, 1961 and to ensure that correct information is disclosed in paragraph 21b(ii) of Tax Audit Report(Form 3CD) u/s 44AB of the Income Tax Act.

Actions to be taken by the TAN holders associated with you:

  • Download “Aggregate TDS Compliance Report” from our portal TRACES for the details of Short Payment defaults against each TAN associated with your PAN.
  • Quarter-wise Justification Reports can be downloaded by the referenced TANs from our portal TRACES for the details of Short Payment defaults.
  • Please use Challan ITNS 281 for payment of TDS in case of Insufficient Challans.
  • Online Correction facility provided by TRACES should be used for closing the above defaults by suitably moving deductee rows/ matching/ tagging of challans.

For any assistance, you can write to Corporate_connect@tdscpc.gov.in or call on +91 120 4816103.

CPC (TDS) is committed to provide best possible services to you. 

Kailash V Gautam
Assistant Commissioner of Incomer Tax
Centralized Processing Cell- TDS

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Avail the Benefit of Intermediate Default Communications and Avoid Intimations from CPC (TDS)

Dear Deductor,

As you may be aware by now that the Centralized Processing Cell (TDS) is informing you of PAN and Challan Errors, through an Intermediate Communication, during processing of Original Quarterly TDS Statements, before Defaults are finally computed and Intimations are generated.

On receipt of the above communication, you are encouraged to take corrective action within 7 days of receipt of such communication. With this, you will be able to avoid PAN Errors and Intimations from CPC (TDS) on account of Short Payment and Short Deduction Defaults in the relevant TDS Statement.

Central point of the process:

  • Identify errors in PANs or Challans in preliminary check, owing to inadvertent Data Entry errors
  • Facilitate their corrections before CPC (TDS) computes defaults in TDS statements
  • You are notified of the Defaults through the Intermediate Default communication by way of the following:
    • e-mail at the Registered e-mail address at TRACES
    • SMS at Registered Mobile Number with TRACES
    • Message will be delivered to the Deductor’s Inbox in TRACES
  • The above correction needs to be carried out by using Online Correction feature at TRACES after 24 hours of the receipt of the Intermediate Communication and must be availed within 7 days of receipt of such communication.

What are the advantages:

  • You would have information of PAN and Challan Errors, before the Original Statement is completely processed for Defaults and Intimations are generated.
  • Correction to above errors using Online Correction can be submitted before final processing of statements and you will be able to avoid Short Payment and Short Deduction Defaults.
  • Saves your Administrative Costs, as above action will facilitate avoidance of multiple Correction Statement filing later, after the defaults are identified CPC (TDS) and Intimations have been sent.
  • Help your Deductees to get Correct Tax Credit in their 26AS statements, at the earliest opportunity.
  • Save Paper, Save Environment! The life of One crucial tree can be saved by avoiding use of 8,000 sheets of paper. Avoidance of Intimations from CPC (TDS) resulting into savings in respect of paper, printing and postage costs. This also supports the “Green Initiatives” of CPC (TDS).

What actions to be taken:

  • Please use the Intelligence, Simplicity and Convenience of Online Correction facility at TRACES to correct errors notified through the communication.
  • Online Correction facility provides ease of convenience and can be availed on anytime anywhere basis by Logging into TRACES. Online Correction is a quick and easy way for closure of Defaults in TDS Statements and correcting PAN/ Challan Errors.
  • All relevant information at the portal is pre-populated along with flags for incorrect entries, which assists in avoidance of further Data Entry errors by the user

You are also encouraged to avail full benefits of Online Corrections and you can access the e-tutorial at TRACES.

CPC (TDS) is committed to provide best possible services to you. 

CPC (TDS) TEAM

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CPC (TDS) thanks deductors for availing Online Correction facility at TRACES

CPC (TDS) has issued a communication in which it has thanked deductors for promptly availing the Online Correction facility at TRACES on receipt of Intermediate Defaults Communication. 

The issued communication has been given below: 

Dear Deductor,(TAN: XXXXXXXXXXXX)

Centralized Processing Cell (TDS) Congratulates you and Thanks you for promptly availing the Online Correction facility at our web-portal TRACES, after receipt of “potential PAN/ Challan errors in TDS statement” through Intermediate Defaults Communication.

You are amongst those of over 1 lakh Deductors, who have successfully availed the facility to submit corrections to their TDS Statements. Your corrective action during the course of processing of Original TDS Statements helps you immensely in following ways:

  • Avoid TDS Defaults in the TDS Statements filed by you
  • Avoid issuance of Intimations by CPC (TDS)
  • Avoid filing of Correction Statements later after the Defaults have been computed by CPC(TDS)
  • Improved TDS Compliance

The Online Correction feature provisioned at TRACES is a significant offering from CPC (TDS), which has added a new dimension to improve web-based deductor services. As you would have personally experienced, the web-based functionality highly weighs over the traditional Correction filing process due to it’s Intelligence, Simplicity and Convenience:

  • Online Correction facility provides ease of convenience and can be availed on anytime anywhere basis by Logging into TRACES.
  • The user requesting the correction is authenticated by the system through KYC or Digital Signature Certificate providing assurance of Data Integrity to the TAN holder.
  • Web-based service, without any fee, substantially reduces costs associated with traditional Correction filing process.
  • Saves manpower effort by doing away with the hassles of submitting the Correction statements through TIN Facilitation Centre.
  • All relevant information at the portal is pre-populated along with flags for incorrect entries , which assists in avoidance of Data Entre errors by the user.
  • Online Correction is a quick and easy way for closure of Defaults in TDS Statements and correcting PAN/ Challan Errors.
  • Improved trun-around for Corrections submitted online, which are usually processed within 24 hours of submission.

You are also encouraged to avail full benefits of Online Corrections and you can access the e-tutorial at TRACES. We also invite your suggestions to further improve the feature and you are requested to feel free to revert.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

Source: TRACES

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