Deductor can  promptly avail the Online Correction facility at web-portal TRACES, after receipt of “potential PAN/ Challan errors in TDS statement” through Intermediate Defaults Communication. Your corrective action during the course of processing of Original TDS Statements helps you immensely in following ways:
  • Avoid TDS Defaults in the TDS Statements filed by you
  • Avoid issuance of Intimations by CPC (TDS)
  • Avoid filing of Correction Statements later after the Defaults have been computed by CPC(TDS)
  • Improved TDS Compliance

The Online Correction feature provisioned at TRACES is a significant offering from CPC (TDS), which has added a new dimension to improve web-based deductor services. The web-based functionality highly weighs over the traditional Correction filing process due to it’s Intelligence, Simplicity and Convenience:

  • Online Correction facility provides ease of convenience and can be availed on anytime anywhere basis by Logging into TRACES.
  • The user requesting the correction is authenticated by the system through KYC or Digital Signature Certificate providing assurance of Data Integrity to the TAN holder.
  • Web-based service, without any fee, substantially reduces costs associated with traditional Correction filing process.
  • Saves manpower effort by doing away with the hassles of submitting the Correction statements through TIN Facilitation Centre.
  • All relevant information at the portal is pre-populated along with flags for incorrect entries , which assists in avoidance of Data Entre errors by the user.
  • Online Correction is a quick and easy way for closure of Defaults in TDS Statements and correcting PAN/ Challan Errors.
  • Improved trun-around for Corrections submitted online, which are usually processed within 24 hours of submission.
As you may be aware by now that the Centralized Processing Cell (TDS) is informing you of PAN and Challan Errors, through an Intermediate Communication, during processing of Original Quarterly TDS Statements, before Defaults are finally computed and Intimations are generated.

On receipt of the above communication, deductors are encouraged to take corrective action within 7 days of receipt of such communication. With this, deductors will be able to avoid PAN Errors and Intimations from CPC (TDS) on account of Short Payment and Short Deduction Defaults in the relevant TDS Statement.

Central point of the process:

  • Identify errors in PANs or Challans in preliminary check, owing to inadvertent Data Entry errors
  • Facilitate their corrections before CPC (TDS) computes defaults in TDS statements
  • You are notified of the Defaults through the Intermediate Default communication by way of the following:
    • e-mail at the Registered e-mail address at TRACES
    • SMS at Registered Mobile Number with TRACES
    • Message will be delivered to the Deductor’s Inbox in TRACES
  • The above correction needs to be carried out by using Online Correction feature at TRACES after 24 hours of the receipt of the Intermediate Communication and must be availed within 7 days of receipt of such communication.

What are the advantages:

  • You would have information of PAN and Challan Errors, before the Original Statement is completely processed for Defaults and Intimations are generated.
  • Correction to above errors using Online Correction can be submitted before final processing of statements and you will be able to avoid Short Payment and Short Deduction Defaults.
  • Saves your Administrative Costs, as above action will facilitate avoidance of multiple Correction Statement filing later, after the defaults are identified CPC (TDS) and Intimations have been sent.
  • Help your Deductees to get Correct Tax Credit in their 26AS statements, at the earliest opportunity.
  • Save Paper, Save Environment! The life of One crucial tree can be saved by avoiding use of 8,000 sheets of paper. Avoidance of Intimations from CPC (TDS) resulting into savings in respect of paper, printing and postage costs. This also supports the “Green Initiatives” of CPC (TDS).

What actions to be taken:

  • Please use the Intelligence, Simplicity and Convenience of Online Correction facility at TRACES to correct errors notified through the communication.
  • Online Correction facility provides ease of convenience and can be availed on anytime anywhere basis by Logging into TRACES. Online Correction is a quick and easy way for closure of Defaults in TDS Statements and correcting PAN/ Challan Errors.
  • All relevant information at the portal is pre-populated along with flags for incorrect entries, which assists in avoidance of further Data Entry errors by the user

More Under Income Tax

Posted Under

Category : Income Tax (27937)
Type : Articles (17637)
Tags : TDS (1076) TRACES (57)

Leave a Reply

Your email address will not be published. Required fields are marked *

Featured Posts