CPC (TDS) drive for closure of Short Payment Defaults to facilitate downloading of Conso Files/ TDS Certificates

The Centralized Processing Centre (TDS) is sending notice based on its records if there are Short Payment Defaults in Quarterly TDS Statements submitted by you and  restricts downloading of Consolidated Files and TDS Certificates  for TAN in default.
Please note that

  • CPC (TDS) has initiated a special drive for closure of Short Payment Defaults due to Unmatched or Insufficient Challans in the TDS Statements.
  • Since the due date for filing of TDS Statements for Quarter 4, 2014-15 and distribution of TDS Certificates subsequently is approaching fast, you are suggested to close the above defaults without any further loss of time.

The Short payment defaults in the TDS Statements may appear due to the following reasons:

A. Unmatched Challans:

  • At times, data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
  • Incorrect quoting of TAN in ITNS 281 at the time of Deposit of TDS.
  • While depositing TDS, incorrect Assessment Year may have been reported in challan ITNS281, while statement pertains to a different Assessment Year.
  • Multiple OLTAS challans may have been reported in the TDS statement incorrectly, with information pertaining to only one challan, and mapped with the referenced Deductee rows.

B. Insufficient Challans:

  • Adequate balance may be available in OLTAS challans, however, already consumed challans may have been incorrectly used in the TDS Statement
  • You have tried to consume more than the available challan balance for reporting TDS deducted in the statements
    Though CPC (TDS) makes best efforts to match challans, however, they may remain unmatched leading to “Short Payment” Defaults.

Action to be taken:

  • Download the Justification Report from our portal TRACES to view your latest outstanding demand.
  • In case there is no available challan for consumption, you are 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, which can be availed without digital signature.
  • CPC (TDS) recommends to close the above default by tagging unconsumed challans, if available in CPC (TDS) system, through Online Correction.
  • Details of defaults will be provided during Online Correction process after logging into the web portal TRACES.
  • Once the challan is suitably tagged and Online Correction is submitted to CPC (TDS), it shall process the statement, thereby rectifying the Short Payment default.
  • CPC (TDS) has introduced Move Deductees facility in Online Corrections for closure of Short Payment defaults in your quarterly TDS Statements. With use of this feature, a portion of the Deductee Rows can now be moved to any other Unconsumed OLTAS challan with adequate balance. You can refer for the details in our article CPC (TDS) drive for closure of Short Payment Defaults: Enhancement in Online Corrections feature for “Moving Deductee rows” from Unmatched Challans.

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Category : Income Tax (24919)
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0 responses to “Closure of Short Payment Defaults to facilitate downloading of Conso Files/ TDS Certificates”

  1. vswami says:

    OFFHAND

    The ab extra initiative taken by the CPC (TDS),is to say the least, apparently one-sided; in that,it stops short of covering in the directive, also instances of excess TDS and remedial steps expected of the erring/defaulter banks.

    The related elaborate comments have been posted on this website itself HERE >

    Closure of Short Payment defaults in Quarterly TDS Statements – Reminder to Banks

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