TDS Challan Correction: How to Rectify Your Errors
Tax Deducted at Source, or TDS, is a tax collecting technique in which the payer, or deductor, withholds a predetermined amount of tax from the recipient, or deductee, before making the payment. TDS is applicable to a number of revenue streams, including commission, pay, interest, and rental income. You must use the approved forms and formats to file TDS returns and challans on a quarterly basis as a deductor. But occasionally, mistakes can be made in your TDS returns and challans, which can result in a discrepancy, default, fine, interest, or other repercussions for both you and your deductees. Thankfully, you may use the methods and resources to fix your TDS issues both offline and online. In this article, we will explain the process of TDS challan correction.
Table of Contents
Common Mistakes People Make in TDS Challans
Here are a few common yet major errors people often make in TDS challans:
TAN Number
Assessment Year
Name
Total Amount
Nature of Payment
Major Head code
Minor Head Code
Process for Online TDS Challan Correction
TRACES (TDS Reconciliation Analysis and Correction Enabling System) is the platform where the online TDS challan repair must be completed. To seek an online challan rectification, you must first register on TRACES and provide a digital signature. The following requirements must be met before you can begin the Online Tax Accounting System, or OLTAS, rectification process.
A valid TAN, the Income Tax Department's 10-digit alphanumeric code used to identify the deductors.
Make sure you register on the TRACES website. It is the official TDS administrative portal. Establish a user ID and password in order to register. Share your PAN, TAN, and other information after that.
Your TDS data for a given quarter is contained in a compressed file called a TDS file. Using your login information, you can access this file from the TRACES portal.
Steps for Online TDS Challan Correction
Step 1: Enter your TAN, password, and user ID to access the TRACES website.
Step 2: Select the option "Request for correction" under defaults.
Step 3: Input the appropriate Form Type, Latest Accepted Token number, Financial Year, and Quarter. Click "Submit" after selecting "Online" as the correction category. There will be a request number produced.
Step 4: Once more, select "Go To Track Correction Request" under "Defaults," type in the request number or request period, and then select "View Request" or "View All Requests."
Step 5: To continue with the repair, click Available / In process status after request status becomes "Available." Other statuses may be requested, initiated, in progress, failed, submitted to the admin user, submitted to ITD, rejected, or processed, depending on the stage of your application. Here are the details of these statuses:
Initiated- TDS CPC is handling the request processing.
Available- The statement is made accessible for revision upon acceptance of the correction request. On the statement, the user can begin making corrections. The user will be directed to the validation screen by clicking on the links. The status of the request or statement will change to "In Progress" as soon as the user clicks on the request with the "Available" status.
Failed- We are unable to fulfil the request because of a technical error. The user can input the same details again.
In Progress- The user is crafting a declaration. The validation screen will appear when the user clicks on the hyperlink.
Submitted to Admin User- Sub-user/Admin user has sent the admin user a rectification statement.
Submitted to ITD- An amended statement has been sent by the admin user to ITD for processing.
Processed- TDS CPC has handled the statement (either for Form 26AS or for defaults).
Rejected- Following processing, TDS CPC rejected the statement. Reasons for rejection will be shown in the "Remarks" section.
Step 6: Give details about legitimate KYC.
Step 7: Choose "Challan Correction" as the correction category type from the drop-down menu. Make the necessary adjustments in the chosen file.
Step 8: To submit your adjustment, click "Submit for Processing."
Step 9: A 15-digit token number will be created and sent to the email address that was registered.
Process for Offline Physical TDS Challan Correction
For payments made on or after September 1, 2011, a new challan correction process has been mandated for the rectification of physical challans. The list of possible challan corrections and the individuals permitted to make them is shown below:
The bank's ability to repair challans is contingent upon the following requirements:
The bank cannot perform name correction.
Only when the name on the challan matches the name on the updated PAN/TAN will PAN/TAN rectification be permitted.
It is not permitted to correct the Minor Head and Assessment Year simultaneously.
Only when the amount corrected matches the amount the bank really received and credited to the government account is a change in the amount allowed.
For a single challan in a given field, correction is only permitted once. A second correction request will be permitted to correct other fields, for instance, if the initial request was limited to the amount.
Change correction requests will not be partially accepted; that is, if all of the requested changes pass the validation test, they will all be approved, or if any of the changes fail, none of the changes will be approved.
How to Approach a Bank for Challan Correction?
The concerned bank branch must receive the request form for correction from the taxpayer (in duplicate).
For every challan, a different request form needs to be filed.
Attaching a duplicate of the original challan counterfoil is required of the taxpayer.
If a correction is needed for any of the challans on Forms 280, 282, or 283, a copy of the PAN card must be included.
If the taxpayer is not an individual, the request form needs to be accompanied by the original authorisation sealed with the taxpayer's seal.
How to Approach an Assessing Officer for Challan Correction?
Taxpayers can request a correction from the concerned assessing officer, who is authorised under the OLTAS application to make such corrections in challan data in legitimate cases, in order to enable credit of the taxes paid to the concerned taxpayer, once the time limit to approach the bank for challan correction has passed. Other actions resemble the previously described approach to a bank.
Conclusion
Although filing a TDS challan incorrectly can be upsetting, there are remedies available from the Indian tax department. You can successfully resolve these issues and guarantee the accuracy of your tax files by being aware of the kinds of corrections that are permitted, the deadlines for each technique, and the procedures for both offline and online rectification. It is required to have a digital signature in order to correct TDS challan online. Seek the advice of a tax expert if you have any more queries or run into problems during the procedure.
FAQ
Q1. How can I change my TDS challan?
Within seven days of the challan's deposit date, the taxpayer must submit an application for a correction to the bank. The taxpayer in this situation may submit an application for a challan adjustment to the relevant bank
Q2. Can I delete a TDS challan?
A TDS challan that you have filed cannot be removed from the statement because it has been consumed and cannot be altered in any way.
Q3. Can I rectify a TDS challan details if its status on the website is displayed as ‘Booked’?
Once the challan is updated with the status "Booked," it is not possible to make changes or corrections to its details. Therefore, in the TIN central system, any corrected TDS/TCS statement that has alterations or rectifications on a booked challan would be refused.
Q4. How long does it take to rectify TDS Return?
The type of correction and the filing method—which are listed above—determine how long it takes to fix a TDS return.
Q5. Can I file a TDS challan correction request multiple times?
Challan correction requests for each submitted challan will only be accepted once via the e-filing site. A user may contact the Jurisdictional Assessing Officer if they would like to make additional corrections in the challenge
Q6. What is the time limit for the correction of TDS return?
The period for submitting a corrected return is indefinite. Get in touch with the relevant Assessing Officer to request a TAN correction if the TAN in the filed statement is incorrect. The sole method available for correcting a new challenge (C9) is online correction mode.
Q7. What happens in case I submit an incorrect challan amount online?
To correct the amount on online challans, contact the bank within 7 days. The revised sum must match the amount that was received by the bank and credited to the government account.
Q8. What are the key benefits of opting for TDS challan correction online?
Online TDS challan repair is a quicker and more practical solution than offline ones. Additionally, it enables real-time tracking of the status of repair requests.
Q9. Can I add a challan in a TDS correction statement?
Yes, after the return filing deadline, you are able to include a fresh challan in your amended TDS return. However, if the return is filed after the deadline, you can have to pay a penalty or fine.
Q10. Can I correct the PAN in a TDS challan?
Yes, you can correct the PAN in a TDS challan. This correction can be made by submitting a request to the bank where the challan was deposited or through your assessing officer.
Q11. Is there a fee for correcting a TDS challan?
Generally, there is no fee for correcting a TDS challan. However, penalties or interest may apply if the correction leads to the discovery of underpayment or late payment of TDS.
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