CPC (TDS) communication: TDS Defaults exist in all Six preceding Quarters, “No Correction TDS Statement filed as yet”

As per the records of the Centralized Processing Cell (TDS), there exist outstanding Defaults in “all six preceeding Quarters” with respect to the TDS Statements filed by deductors, relevant to the Financial Years 2013-14 and 2014-15.

CPC (TDS) has issued a communication to deductors in this regards which has been given below:


As per the records of the Centralized Processing Cell (TDS), there exist outstanding Defaults in “all six preceeding Quarters” with respect to the TDS Statements filed by you, relevant to the Financial Years 2013-14 and 2014-15.

Please note that you have “not filed” any Correction Statements as of December 31, 2014 for closure of the TDS Defaults.

Immediate Attention:

  • CPC (TDS) facilitates downloading of TDS Certificates (Forms 16/16A) in accordance with section 203 of the Income Tax Act, 1961 read with Rule 31(1) of the Income Tax Rules, 1962 for issuance of the same to the deductees. The deductor duly verifies to the effect that the amount due has been deducted and deposited to the credit of the Government and the information provided in the said certificate is true, correct and complete
  • However, as per the records of CPC (TDS), it is observed that the amount of tax deposited / remitted mentioned by you in the TDS Statements is not correct due to insufficient or unmatched challans (owing to possible data entry errors).
  • To take care of the above and to facilitate non-intrusive TDS Compliance, Online Correction facility has been made available at TRACES for closure of Short Payment defaults due to challan errors. CPC (TDS) processes such statements within 24 hours of submission of such corrections.
  • In view of the above, Short Payment Defaults ought to be closed at the earliest , failing which you may not be able to submit requests to download TDS Certificates from the web portal TRACES

Consequences of failure to pay the demand:

  • As per the provisions of section 220 of the Act, Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.

If the amount specified in any notice of demand is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid.

  • If any person fails to deduct or pay the whole or any part of the tax, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay under Section 271C of the Act.
  • Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.
  • Section 278A of the Act prescribes for punishment for second and subsequent offences, if any person has been convicted of an offence under section 276B.

Actions to be taken:

  • Use Challan ITNS 281 to pay the above demand with your relevant Banker, if there are no challans available for consumption
  • Please download the Justification Report from our portal TRACES to view your latest outstanding demand. Please click here for assistance on downloading the Justification Report.
  • Please use the Online Corrections facility on TRACES to submit corrections, to payoff/ close the demand.
    • To avail the facility, please Login to TRACES and navigate to Defaults tab to locate Request for Correction from the drop-down list. You can refer to our e-tutorials for necessary help.
    • In case of Short Payment Defaults due to Unmatched Challans, please use Tag Unmatched Challan facility using Online Corrections.
    • In case of Short Payment Defaults due to Insufficient Challans, please use Move Deductee facility using Online Corrections
  • Alternatively, you may also download the Conso File from our portal provided there are no Short Payment Defaults.
    • Prepare a Correction Statement using the latest Return Preparation Utility (RPU) and File Validation Utility (FVU).
    • Submit the Correction Statement at TIN Facilitation Centre.

For any assistance, you can write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

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



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