CPC (TDS) -Advisory for closure of Short Payment Defaults using Online Correction facility before allowing Conso Files
As you may be aware that at the time of filing TDS statements, it is mandatory to quote the challan particulars through which TDS payments have been made. The TDS forms prescribe quoting of such challans and the underlying deductee transactions corresponding to such challans.
However, it is observed that:
- At times, data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
- Though CPC (TDS) makes best efforts to match such challans, however, they may remain unmatched leading to “Short Payment” demand.
- The above results into issuance of notices by the field officers.
To make the resolution process non-intrusive, CPC (TDS) proposes a new change while submitting request for download of the Consolidated (Conso) file for a particular quarter. If there is a “Short Payment defaults” on account of unmatched challans for the relevant quarter, the deductor would be provided with online view of all available unconsumed challans, which can be tagged with deductees, to close the above default.
Following are key information to be noted in this regard:
- CPC(TDS) mandates to close the above default by tagging unconsumed challans, if available in CPC(TDS) system, through online correction (without digital signature).
- In case there is no available challan for consumption, the deductor is required to first deposit the due tax in the bank and then the same challan will be available for tagging in CPC(TDS) system after around 3-4 days of deposit.
- The Online Correction facility of TRACES needs to be used for closure of the Short Payment default.
- The user will not be able to download Conso file for the relevant TDS statement on closure of the above default.
- Once the challan is suitably tagged, CPC(TDS) shall suo moto reprocess the cases thereby reducing the Short Payment default by equivalent amount.
What Actions to be taken:
- During submission of request for Conso File, a message will be displayed, if there are Short Payment defaults in the TDS statement and instructions will be provided to submit Online Correction.
- Details of defaults will be provided during Online Correction process.
- In case of insufficient challans, please use Challan ITNS 281 to pay the demand or use any other Challan, which has adequate balance available.
- Submit an Online Correction using the functionality on TRACES to tag the challans with deductee rows. Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down list.
Online Challan Corrections:
- A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
- Unmatched challans can be corrected and tagged to Deductee rows in the statement.
- The corrections in TDS statements can be raised even without Digital Signature.
- Correct KYC information needs to be submitted for the purpose of validation.
- All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard.