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

Types of Corrections in TDS Returns

‘Most Trusted Award’ – by The Economic Times


Healthy Practices for Error-Free TDS Returns

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Healthy practices for error-free TDS returns has been given below: 

  1. Deduction/ Collection of Tax at Correct Rates.
  2. Timely Deposit of TDS/TCS
  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 with 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’ts for TDS Returns

Fees for Late Filing of TDS Returns


Salary TDS – Employee to inform Employer for concessional rate

Section 115BAC has been inserted in the Finance Act 2020 in the recent budget. This allows the option to Individuals & HUF to avail concessional rate of income tax with certain conditions pertaining to claiming deductions & other concessions. The other existing option will also continue.

This comes into effect from April 2020 (i.e. FY:2020-21 / AY:2021-22).

Since the Employers need to deduct tax (TDS) on salaries, CBDT vide its Circular No. C1 of 2020 dated 13/04/2020 has clarified the procedure and rules related exercising either of the two options for calculating TDS. This is summarized as under:

  • The Employee needs to inform the Employer that for the financial year, he would be opting for the computation as per the new Section 115BAC. On receiving this intimation, the Employee will deduct tax (TDS) on salary accordingly.
  • If no intimation is received from the Employee, the existing system of TDS on salary for that employee shall continue.
  • Once the intimation is made by the Employee to the Employer to opt for tax computation under Section 115BAC, this cannot be changed during the course of the financial year. However, this can be changed in the subsequent financial year.
  • At the time of filing tax returns, the employee has the option to select either of the two options to compute the tax liability. This is irrespective of the option used by the Employer for TDS purposes.

The concessional tax slabs as per Section 115BAC is mentioned below:

Salary TDS _ Income Tax slabs

 Note: The taxable income as computed under the provisions of Section 115BAC is without Deductions and other Reliefs.

Click Here to view the original circular



‘Most Trusted Award’ – by The Economic Times

Another proud moment for Team TDSMAN. For the second consecutive year, PDS Infotech (P) Ltd. has been bestowed the ‘Most Trusted Award’ by The Economic Times & Rotary International for the category ‘Software Products – Taxation’.

A big thank you to all our clients, eco-system partners, vendors and other stakeholders. We reaffirm our determination to keep improving and giving our best.

Clip of The Economic Times dated 23rd September 2020

The Economic Times – online coverage

PDS Infotech (P) Ltd – coverage in Magazine

Magazine – containing all award winners