CPC (TDS) follow up: Online Correction facility not availed after sending “Intermediate Communication for Short Payments” in course of processing of Original Quarterly TDS Statements

As per the records of CPC (TDS), an Intermediate communication was sent to TDS deductors intimating Short Payment errors in the Original TDS Statements filed by deductors during January 1 – February 10, 2015 and they were requested to use Online Correction facility at TRACES for closure of the above within a week of receipt of above communication.

However, after the above was communicated to deductors, no actions was taken using Online Correction functionality (without Digital Signatures) to correct above errors by some of the deductors.
There may be a possibility that the above communication could not reach to deductors due to incorrect email/ Mobile number provided and they are been requested to correctly report the same in your TDS Statements.
You are also requested to submit a Correction Statement, without any further loss of time, to close the Short Payment Defaults in your Original TDS Statement(s).
Please note that

  • This 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.
  • The onus for closure of Short Payment Defaults lies on the deductor submitting the TDS Statements.

Your attention is also drawn to the essence of above communication and the advantages of taking actions with Online Correction feature:

  • You would have preliminary information of potential Short Payments, before the Original Statement is completely processed for Defaults and Intimations are generated
  • The central point in the process is identification of errors in challans and facilitating their corrections before CPC (TDS) computes defaults in TDS statements
  • Correction of above defaults using Online Correction can be submitted within 7 days of receipt of the Intermediate Communication, before computation of Defaults for the referenced TDS statements
  • The above actions Above action will facilitate avoidance of multiple Correction Statement filing later, after the defaults are identified CPC (TDS) and Intimations have been sent.

What Action to be taken on receipt of Intermediate communication:

  • Please take note of the Intermediate communication from CPC (TDS) and submit Online Correction for potential defaults in TDS statement within the stipulated time frame.
  • Only “Online Correction” facility can be used for correction of above Short Payments and PANs
  • To avail the facility, you are requested to Login to TRACES and navigate to Defaults tab to locate Request for Correction from the drop-down menu.
  • The action requires to be completed within 7 days of receipt of the Intermediate Communication.
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September 2021