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.

Republished with Amendments

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  1. Rajesh Kumar says:

    Hello, I have a similar issue wherein I didn’t pay Education cess (Rs 900) in a statement filed for Form 27Q (TDS on Rent paid to an NRI as my landlord is an NRI). I have the RPU software and have downloaded the Conso file. I have deducted TDS at 30% as per direction from IT Dept. The rent per month is Rs 25000, hence the TDS comes to Rs 7500 and Cess comes to Rs 300 per month. In my monthly challans for TDS, I have only deposited the Rs 7500 and didn’t deposit the Cess at Rs 300. I have another challan now in which I have paid the pending Cess of Rs 900 along with Interests and Late payment fees. When I correct the statement on TRACES and upload this new challan, it consumes the Interest and Late payment fees amount, but the Rs 900 of Short Deduction is still shown as Pending in the Default summary, and it is unconsumed from the Challan (the Challan balance is Rs 900). How can I edit this Conso file in the RPU software? Note that the percentage at which TDS was deducted is correct in my case – just the Cess was missed.


  2. Sunila Sunil says:


    Filing done in 3rd quarter same challan, wrongly added in fourth quarter statement also . Demand notice showing challan overbooked… Conso file downloaded… I want to delete that challan and deductee details…if put zeros in rows it will correct or not
    …im not getting… Deleting not possible in conso file….What will I do next

  3. Bharati says:

    kindly inform me that while paying the short duduction and interest on short deduction which head we have to fill there is no specific head given for short deduction in challan 281 .

  4. kehar Singh Karki says:

    Sir, Even after tagging the unconsumed challan, the deductee received Form 16A for the original amount only so is it necessary to correct the Deductee details in Conso file and re-submit the correction statement of TDS ?

  5. Ankur says:

    i am getting this error while correcting in online mode (FY 2010-11, 24Q, Q4 ):

    Online correction on TRACES is not enabled for the requested statement. Kindly file correction through NSDL and the subsequent correction can be filed on TRACES

  6. Sujoy Moulik says:

    I was doing an online correction of challan. However, after tagging a challan, everytime i am trying to save the details, the following error code is showing on the screen:
    Server Error

    Any idea anybody how to resolve this.

  7. Rajeev Agarwal says:

    Sir, I have filed one TDS return of my clinet, mistakenly no tds was adjusted by my staff but challan is matched by nsdl so i am not able to now adjust the same as there are no unmatched challan. Please guide what to do.

  8. Sneha says:

    To CA Abhishek Garg, Yes it doesnt need to be filed if online correction is made and its processed without defaults.

    But there are many problems while correcting online…half of the time system error comes…hence wastes a lot of time

  9. senthil kumar says:

    sir we made correction wrongly for multi time so deductee deatails are now we get the conso file now show in our deductee is flag c how i correct

  10. CA.Abhishek Garg says:

    Thanks for this useful update.
    There is only one query to this on my mind, and that is, the revised return need not to be filed if the online correction is made?

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July 2022