TDSMAN Blog

smart & easy software for eTDS & eTCS returns

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

CBDT issues Circular for Early & Satisfactory Resolution of Taxpayers’ Grievances

CBDT has issued a circular for early & satisfactory resolution of taxpayers’ grievances relating to verification & correction of tax demand outstanding against them.

The Income Tax Department has taken note of grievances of taxpayers arising on account of outstanding tax demand which may be inaccurate due to non-reporting or delayed reporting of TDS by deductors leading to mismatch between the claim and data available with the Department, non-posting of challans, non-disposal of rectification applications, incorrect details of income or pre-paid taxes reported by taxpayer etc.

In order to swiftly and accurately resolve such grievances, the Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance has issued a comprehensive Circular No. 8 of 2015 dated 14.05.2015 which is available on the websites of the Department http://www.incometaxindia.gov.in & www.incometaxindiaefiling.gov.in. The Circular explains the various steps to be taken by the taxpayers to view and submit their response with regard to their outstanding tax demand. The Circular elucidates the range of facilities available and the responsibilities of the Assessing officers to verify and take corrective actions. Demand up to Rs. 1,00,000/- for an Assessment year in case of an Individual or HUF which has already been paid but is shown as outstanding due to mis-match etc. can be rectified on the basis of evidence of tax paid as submitted by the taxpayer.

The taxpayers may view their outstanding tax demand on their e-filing account at www.incometaxindiaefiling.gov.in and follow the steps elucidated in the Circular to submit their response either agreeing with or disputing the demand.

The Income Tax Department is committed to early and satisfactory resolution of taxpayers’ grievances. About 95% of entries of Demand involve demand up to Rs. 1 lakh and about 90 % of such assessees are Individuals and HUFs. It is expected that majority of the grievances of small taxpayers can be redressed by following the procedure prescribed in the circular.

Source: Business Standard

facebooktwittergoogle_plusredditpinterestlinkedinmail

FAQ on Online Correction

What is Online Correction?

TRACES has provided the functionality of “Online Correction” where deductor can perform correction of TDS/TCS statements online. Following are the various facilities available through online correction:

  • View default summary
  • Rectifying challan mismatch cases
  • Addition of new challan to the statement
  • Pay 220/interest/levy
  • Add or Delete Salary Detail
  • Rectifying statement challan information
  • PAN Correction
  • Correction in Personal Information
  • Add/Modify deductee detail
  • Movement of deductee rows 

How to apply for Online Correction?

Login into TRACES as a deductor and raise the request for online correction under ‘Default’ Menu. For more information please refer E-tutorials. 

Is it mandatory to have registration of Digital Signature on TRACES for all type of online correction ?

Digital Signature Matrix for functionalities through online correction: 

I have filed a paper return, and want to make online correction through TRACES. How should I proceed?

Online correction functionality on TRACES will not be available in case of paper return .

What will the deductor do if the request for correction is rejected by TDSCPC?

Deductor has to check the rejection reason by selecting ‘Track Correction Request under ‘Default’ from main menu. Then select the request number and click on hyperlink ‘Rejected’ under the heading ‘Status’. Once the user takes the necessary action on resolution of rejection reason, he can resubmit the online correction request through TRACES.

Is it necessary for a sub-user to submit online Correction?

Yes, after making the online correction, sub- user will submit the corrections to admin user for final submission to TDSCPC. Sub-user will not be able to proceed further without the intervention of Admin User.

I have received the demand for late fee and paid the same, now how can I file online correction for the same through TRACES?

Login into TRACES, under ‘Defaults’ raised the request for online correction. Once request number is generated and request status is in available status, user can make the online correction by choosing the option ‘Pay late fee/ 220/ interest’. For more detail refer e-tutorial.

My Digital Signature Certificate (DSC) is already registered on TRACES. However, when I am trying to submit online correction, system does not allow me to proceed. What is the reason?

You need to clear the cookies and reload the website. If issue still persists check the browser being used. Internet Explorer 7,8 or 9, Google Chrome and Mozilla Firefox 17 & above are compatible browser for TRACES.

What all information can be changed in Personal Online Correction option?

By choosing ‘personal information’ option from ‘Type of correction’ drop down online correction option, you can edit communication detail of TAN as per statement and name & communication detail of authorised person as per statement.

Can I cancel the online correction request?

Yes, before submitting the correction for processing, you can cancel the request under ‘correction ready for submission’ where you will get an option to ‘cancel statement’. By clicking on this, correction will not be submitted to TDSCPC and will be cancelled.

Can I submit multiple corrections with one request number?

Yes, you can do multiple corrections with one request number for the statement pertaining to same financial year, quarter and form type.

Can Deductor do online correction for TCS?

Yes, deductor can file online correction for both TDS and TCS.

Can salary details in annexure 2 be edited through online correction?

User can update only PAN of the employee in annexure 2. For correction in other fields, user can delete the existing deductee row and/or add new deductee row.

Can Deductor change the category of Deductor through Online Correction?

No, deductor cannot change the “category of deductor” through online correction.

Source: TRACES

facebooktwittergoogle_plusredditpinterestlinkedinmail

Reasons to reject the correction in salary detail records by TDSCPC

Rejection reasons pertaining to salary details are as follows:

  • In case of salary detail PAN update or delete of salary detail record, last total gross income should match with corresponding value in regular / previous statement
  • Salary detail record on which correction is filed does not exist in the regular / previous return
  • In case of addition of salary detail record, the record number should be unique and in sequence with the existing records in regular / previous return
facebooktwittergoogle_plusredditpinterestlinkedinmail

Reasons to reject the correction in deductee records by TDSCPC

Rejection reasons pertaining to deductee details are as follows:

  • In a correction statement that updates / deletes deductee rows, verification keys from deductee data that should match with corresponding fields in regular / previous return are – Last PAN, Last total amount deducted at source, Last total amount deposited
  • Updation / deletion on deductee record is submitted in a correction statement but this deductee record does not exist in previous/ regular return
  • Valid PAN to invalid PAN update is not allowed for a deductee row
  • Deductee detail record number should be unique in case of addition of deductees
  • If value of Reason for non-deduction / lower deduction / higher deduction / threshold field as per regular or last correction statement is ‘C’ , then update can be performed only on ‘PAN’, ‘Amount of Payment’ and ‘Date of Payment’
  • Deletion of deductee record having value C in Reason for non-deduction / lower deduction/ higher deduction / threshold field, is not allowed
  • Valid PAN to another valid PAN update can be done only once for a given deductee row
facebooktwittergoogle_plusredditpinterestlinkedinmail
  • RSS
  • Facebook