Smart & Easy TDS Software for Preparing TDS Returns

TDSMAN Blog - Smart & Easy TDS Software for Preparing TDS Returns

Healthy Practices for Error-Free TDS Returns

Healthy practices for error – free TDS returns has been given below: 
  1. Deduction/ Collection of Tax at Correct Rates.
  2. Timely Deposit of Tax Deducted at Source.
  3. Accurate Reporting of data related to tax deductions/ collections made.
  4. Submission of TDS Statements within the due dates.
  5. Verification and Issuance of TDS Certificates within time.
  6. CPC (TDS) is now sending “Intermediate Default Communication” for PAN Errors and Short Payments, which can be corrected during the interim period of a week of filing TDS Statements, before CPC (TDS) proceeds with computing Defaults for the relevant statement.
  7. User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please navigate to Defaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES).
  8. Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action.
  9. The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.
  10. Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.
  11. PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.
  12. The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.

Do’s & Don’t’s for TDS Returns

Given below are some dos and don’t for filing of TDS returns:


  1. Ensure that TDS return is filed with same TAN against which TDS payment has been made.
  2. Ensure that correct challan particulars including CIN and amount is mentioned.
  3. Correct PAN of the deductee is mentioned.
  4. Correct section is quoted against each deductee record.
  5. Tax is deducted at correct rate for each deductee record.
  6. File correction statement as soon as discrepancy is noticed.
  7. Issue TDS certificate downloaded from TRACES website.


  1. Don’t file late returns as it affects deductee tax credit.
  2. Don’t quote incorrect TAN vis-à-vis TDS payments.

Avail the Benefit of CPC(TDS) Analytics for Correction of PANs in your TDS Statements

Date of Communication: 03/01/2017

Dear Deductor, TAN (XXXXXXXXXX)

Centralized Processing Cell (TDS) has observed from its records that you have reported “Structurally Correct, however Invalid PANs” in your TDS Statement filed for Quarter 2 of Financial Year 2016-17. To correct such errors, CPC (TDS) Analytics provides facility of correct PAN suggestions for the Deductees, while submitting Online PAN Corrections based on your statement filing history.

Action to be taken:

  • “Online Correction” facility of TRACES can be used with Digital Signatures for correction of PANs. To avail the facility, you are requested to “Login to TRACES” and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down menu. For assistance, please refer to the e-tutorial available on TRACES.
  • While submitting PAN Corrections, CPC (TDS) Analytics identifies the above referred errors for you and provides suggestions for Valid PANs. This will reflect as follows while submitting corrections:


Implications, if Errors are not corrected:

Deductor would not have been able to generate TDS Certificates for deductees with such incorrect PANs. In case, you have issued TDS Certificates outside TRACES, they will not be valid. In view of CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012, TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.

  • Correct TDS Credits in 26AS statements to such taxpayers will not be available and they will not be able to avail the same, while filing their Income Tax Returns.
  • As per section 206AA of the Income Tax Act, tax is to be deducted at a higher rate, in case of “Not Available/ Invalid PANs”. Therefore, default of Short Deduction, including Interest is charged on the deductor, if the tax has not been deducted at higher rate, as per the provisions of section 206AA.

Therefore, to avoid generation of defaults against you and to avoid any inconvenience to your deductees, please make full use of the above referred facility.

For any further assistance, you can also write to or call our toll-free number 1800 103 0344

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


Source: TRACES


FAQ on TDS Refund

(Q1.) Can I apply for TDS refund offline?

No, deductor cannot apply for refund offline.

(Q2.) Form which FY can deductor claim for Refund?

Deductor can apply for TDS refund from FY 2007-8 onwards for Form type 24Q, 26Q, 27EQ, 27Q.

(Q3.) Is DSC mandatory for Refund?


(Q4.) Deductor is unable to submit the request for Refund at Step-4?

Dongle has to be inserted while raising the request for refund, in case deductor is unable to submit request at step -4.

(Q5.) Can deductor claim for Refund for amount less than Rs 100/-?

Refund can be claimed for amount greater the equal to Rs 100/-.

(Q6.) Can deductor claim for Refund even if there is outstanding demand on his TAN?

Yes, deductor can still claim for refund.

(Q7.) Can government deductor claim for refund as they have no PAN?

Pan of the Deductor should be available and should be same as TAN master, so government deductor will not be able to give the request.

(Q8.) If deductor has shown money in interest and fee column by mistake, can he claim the refund?

If Deductor has shown money in interest and fee column by mistake, he cannot claim the refund unless correction is filed and amount is removed from this column.

(Q9.) Can deductor cancel the Refund request once submitted?

Refund request can be cancelled only before AO approval, if AO has approved the request it cannot be cancelled.

(Q10.) What if deductor has mentioned incorrect Bank details while submitting the Refund request?

Deductor should provide correct bank account details as these details will be verified by the AO and one time correction in bank details and communication details is allowed.

Q11.) How do I get my refund amount?

If refund amount is more than Rs 50,000/- then only cheque is issued below Rs 50,000/- amount will be transferred in the bank account.

(Q12.) Can deductor give Refund Request for amount more than Rs 100,000/-?

Yes, If refund amount is more than Rs 100,000/- the AO as well as additional AO’s approval is required.

(Q13.) What all can be the reasons for Rejection of Refund Request?

Some of the common rejection Reasons are:

  • Status will be rejected if outstanding demand comes after AO approval.
  • Request is rejected by AO TDS in case outstanding demand for TANs associated with the PAN of the deductor
  • Request will be rejected by AO in case invalid Bank Details.
  • Request will be rejected in case change in available balance due to change in associated challan.
  • Request will be rejected in case reduction in available balance due to change in associated challan.
  • Request will be rejected in case open challan correction due to change in associated challan.
  • Request will be rejected in case force challan matching by AO due to change in associated challan.
  • Request will be rejected in case Demand Outstanding due to change in associated challan.


  • PENDING WITH AO: Once the request is submitted and validated request will be displayed with status
  • PENDING WITH TDS: Status will be pending with TDS CPC if request is approved by AO
  • PENDING WITH REFUND BANKING: Status will be pending with Refund Banker if request is with Bank.

Source: TRACES

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