CPC (TDS) -Advisory for closure of Short Payment Defaults using Online Correction facility before allowing Conso Files

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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.

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0 responses to “How to close Short TDS Payment Defaults using Online Correction facility?”

  1. 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

  2. VINOD says:

    how to change bsrcode of challan non tdscpc online correction of challan?

  3. 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.

  4. 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.

  5. 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

  6. 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

  7. 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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