Types of Corrections in TDS Returns

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There are 6 types of corrections namely C1, C2, C3, C4, C5, C9. The following table briefly talks about each correction type:

Type Corrections in:
C1 Deductor details: All details of deductor except the TAN No. can be modified.
C2 Challan details: All details of the challan can be modified. C2 can include C1 type correction
C3 Deductee details: All details except the PAN number of the  Deductee can be modified. One may add/delete/modify a deductee in the existing challan.
C4 Salary Details: This type of correction is only applicable to correction of 4th Quarter statement of Form 24Q. All the details of the salary can be modified here except the PAN number of the employee. Here there is no provision of updating the record, a record has to be deleted and a new record has to be added with updated details.
C5 PAN: In this type of correction deductee PAN is updated. When Pan is updated for Salary record the same will also get updated in the deduction record. PAN has to be updated quarterwise i.e a separate correction return needs to be filed for each quarter where the PAN number is mentioned incorrectly.
C9 Addition of new Challans and/or Deductions: Any new addition of Challan and/or deductions forms Correction type C9. When a deduction is added with Tax amount zero then automatically a NIL challan is generated
It may be noted the C1,C2, C3,C4,C5 and C9 type of correction may be made in the same single correction.

Steps for Preparing Correction Returns
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Steps for requesting Form 16

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The procedure for requesting Form 16 from TRACES website has been given below:

From FY:18-19 onwards, the Income Tax department is now providing both Part A and Part B of Form 16 (TDS certificate for employee)

The steps for requesting Form 16 are:

  1. Login to TRACES after giving User ID, Password, TAN of the Deductor and CAPTCHA code
  2. Check statement status under Statement/Payment option before requesting for Form 16
  3. Click on Form 16 available under Downloads option
  4. Request for Form 16 through Search PAN download or Bulk PAN downloads option
  5. Click on Submit to proceed
  6. Give Token Number of Regular Statement related to Financial year, Quarter and Form type displayed
  7. Fill CIN/valid PAN details related to Financial year, Quarter and Form type displayed on basis of latest correction filed
  8. An authentication code will be generated after giving correct KYC details
  9. A unique Request number will be generated after submission of request for Form 16
  10. Go to Requested Download option and Form 16 will be available there
  11. Form 16 can be downloaded using HTTP download or Download Manager option
  12. Now convert Form 16 into PDF

To convert Part A of Form 16 into PDF deductor can download Form 16 PDF Converter Utility 1.4 L

To convert Part B of Form 16 into PDF deductor can download TRACES-PDF-CONVERTER V 1.1L (PART B)

Rather than going through the above mentioned steps, deductors can easily download TDS certificate from the TRACES website using TDSMAN software. The software is fully integrated with TRACES and helps downloading of TDS certificate from the software itself.

The steps for requesting Form 16 from TDSMAN Software are mentioned below:

  1. Go to TRACES Information and click on Request for Form 16 and click on Request
  2. Then go to Download Requested Files
  3. Give TRACES log in id and password and enter CAPTCHA code
  4. Both Form 16 Part A and Part B will be available to download
  5. Now  convert  Part A and Part B Zip files to PDF.

To convert Part A to PDF go to Downloads section of TDSMAN Website and then click on download beside Latest PDF Converter Utility to generate TDS Certificate provided by TRACES department

To convert Part B to PDF go to Downloads section of TDSMAN Website and then click on download beside PDF Converter Utility to generate TDS Certificate – Part B option provided by TRACES department.

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Last date for issuance of TDS certificates for Q1 of FY: 2019-20

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Last date for issuance of TDS certificates for Q1 of FY: 2019-20 – 15th August, 2019

Note: The above is applicable for deductors other than the Office of the Government

Delay in requesting certificates may involve a fine of Rs. 100 per day u/s 272(A)(g) subject to an upper limit of the tax deducted.

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Interest on Late Payment of TDS

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In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government.

Interest @ 1.5% is liable to be paid from the date on which the TDS amount was deducted and not from the date the TDS payment was due. 

For example: TDS was deducted on 25th June and the due date for TDS Payment was 7th July. The assessee fails to deposit the TDS by 7th July. In such a case, the Interest would be calculated from 25th June and not from 7th July.

The interest is to be calculated as per illustrations below: 

Case 1:

Tax Deducted on 26th June, TDS deposited on 9th July (due date was 7th July)

The period of 26th June to 30th June will be calculated as one month (being part of a month month i.e. 30 – 26 = 4 days) & from 1st July to 9th July will also be treated as one month. As such in this case, the interest payable is for two months. Total interest would be 3%. Sounds odd, but it is true –  for a delay of 2 days, one has to pay interest for two months. 

Note: In the above case, if tax was deducted on 30th June instead of 26th June, the number of days in June is calculated as 30 – 30 = 0 days. As such interest for one month will be charged i.e. only for July.

Case 2:

Tax Deducted on 20th March, TDS deposited on 5th May  (due date was 30th April)

The period of 20th March to 31st March will be calculated as one month, 1st April to 30th April will be another month & from 1st May to 5th May will be treated as another one month. As such in this case, the interest payable is for three months. Total interest would be 4.5%. For a 5 day delay, the interest payable is for 3 months. 

Logic behind this calculation is that, if dues are not paid on time, the interest for each month (or part thereof) is to be paid right from the date of deduction till date of deposit of the TDS amount. Each month is treated based on the Calendar Month or part thereof, instead of counting the number of days. However, if tax is deducted on the last day of the month, in that case, that month is not counted for calculation of interest.

Important: there is a difference between late deduction and late payment. Learn more

Difference between Late Payment & Late Deduction

Interest on Late Deduction of TDS

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