CPC (TDS) mandates closure of Short Payment Defaults using Online Correction facility before allowing Conso Files
The Centralized Processing Cell (TDS), in its endeavour to enforce TDS Compliance, is shortly mandatingclosure of “Short Payment defaults” in the quarterly TDS statements due to Unmatched Challans, before the Conso files can be downloaded from TRACES for the relevant statements. 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.
→ CPC(TDS) mandates to close the above default by Matching or Payment of challans.
→ The user will not be able to download Conso file for the relevant TDS statement until the above default is closed.
→ The Online Correction facility of TRACES needs to be used for closure of the Short Payment default.
→ User will subsequently be able to download the Conso file for relevant period only after the default is closed.
Why the Short Payment needs to be paid:
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:
You are requested to take appropriate actions to avoid any inconvenience in absence of Conso files for carrying out any other corrections to your TDS statements.