CPC (TDS) drive for closure of Short Payment Defaults: Enhancement in Online Corrections feature for “Moving  Deductee rows” from Unmatched Challans

Centralized Processing Cell (TDS) has initiated a special drive for closure of Short Payment Defaults in quarterly TDS Statements due to Unmatched Challans.   

For closure of Short Payment Defaults arising due to Unmatched Challans quoted in TDS Statements, CPC(TDS) has further enhanced the Online Correction facility at TRACES, providing  with the feature of “Move Deductees” from Unmatched Challans to any other Unconsumed OLTAS Challan.

Please note that the above assumes further significance towards ensuring non-intrusive TDS Compliance, since, Short Payment Defaults ought to be closed at the time of submitting requests to download Consolidated Files or TDS Certificates from the web portal TRACES. To facilitate closure of Short Payments due to Unmatched Challans, CPC(TDS) has further improved the intelligence, simplicity and convenience of Online Correction feature, as follows:

  • New Feature to Move Deductees added to Online Correction facility: 

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. The facility can be used in the following situation:


  • The challan(s) remain unmatched due to data entry errors in the TDS Statement(s).
  • 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.
  • The incorrect Challan information furnished above is causing Short Payment Defaults in the TDS Statement due to Unmatched Challans.

For instance, if there are two OLTAS challans reported in the TDS Statement an if:

  • Total TDS in Deductee Rows, mapped to Unmatched Challan(s): Rs. 1,10,000
  • OLTAS Challan CIN1: Rs. 1,00,000
  • OLTAS Challan CIN2: Rs. 10,000
  • Challan reporting in TDS Statement: Instead of reporting the above challans separately, incorrectly only CIN1 tagged in TDS Statement with TDS amount of Rs. 1,10,000
  • The above error causes Short Payment Default in the TDS Statement


  • In above situation, CIN 2 should first be added to the relevant TDS Statement using Online Correction facility
  • Deductee Rows with a total TDS of Rs. 10,000 can now be moved to CIN 2, which has incorrectly not been reported in the TDS Statement
  • Now CIN 1 (Rs. 1,10,000), as mentioned in the TDS Statement, can be tagged to the Unconsumed OLTAS Challan CIN1 (Rs. 1,00,000).

Action to be taken for Moving Deductee Rows:

  • Please logon to the website TRACES and Online Correction facility of TRACES needs to be used for closure of the Short Payment default, which is available even without digital signature.
  • Please select ‘Challan Correction’ in ‘Type of Correction’ drop-down menu
  • Navigate to Unmatched Challan and tag unconsumed challans, if available on TRACES. system.
  • Select a row and click on Move deductee row – List of deductees attached to the challan are displayed
  • Select deductee rows to move to a different challan – List of challans with balance greater than total tax deposited of the selected deductee rows are displayed
  • Select a challan and click on move deductee row – All selected deductee rows are moved to a new challan.

TDS deductors are requested to take corrective actions at the earliest for closure of Short Payment Defaults due to Unmatched Challans

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September 2021