TDS Correction Statement

Have you paid the Central government-mandated TDS? Unfortunately, there are times when a silly mistake like selecting the incorrect assessment year or entering the incorrect PAN / TAN can result in significant deductions.

Returns/statements regarding TDS/ TCS should be complete and proper. However, the taxation Department has provided a procedure for correction of any mistake within the original returns/statements by submitting ‘correction returns/statements’.

TDS Correction Statement

The TDS return has to be submitted to NSDL by the creator for deducting the TDS (Deductor) quarterly. After filing the standard return, you notice that there are some details that you just have wrongly entered, say a PAN number or a reputation. What do you have to do now? Now you must file a Correction Statement. what’s the process?

This can also result in no step-down situation for the deductee. However, the govt. the portal allows you to form TDS corrections in TRACES online and offline.

Keep reading to grasp the way to rectify errors within the TDS challan with some steps.

How to Correct TDS Challan Details Online?

You can finish the TDS correction in TRACES online. However, TDS Reconciliation Analysis and Correction Enabling System or TRACES compels a digital impression for challan correction and enrollment.

Tax deduction at source is a revenue enhancement provision wherein taxpayers ensuring payments like salary, commission, professional fees, interest, rent, and other specified payments are obligated to deduct a percentage of tax before remitting the ultimate payment. The deductor of taxes is further required to furnish an announcement of TDS for a given TAN, form, fiscal year, and quarter. The changes or updates made to the first statement are referred to as a correction statement.

However, just in case of any corrections in TAN, the assessee is required to contact the Assessing Officer to create the mandatory rectifications. Taxpayers should note that the corrections may be updated within the TDS returns within three days of filing. Also, the taxpayer’s choice to file the correction statement isn’t limited, since modifications in TDS returns can frequently be made to draft the changes within the original TDS report. during this article, we briefly describe the concept of a TDS correction statement.

Identification of Defaults

The defaults may be identified by logging into the TRACES website and selecting the choice of “Defaults” which may be found for every quarter and yr. These defaults are going to be classified into various categories like short deductions, short payments, late payments, and late deductions. The screen will depict the interest in such defaults.

Downloading of Traces Files

In the event of any default, asking should be made to access and download the TDS Conso File and Justification Report on the TRACES website. The request is processed by furnishing the traditional KYC (Know Your Customer) or through the digital signature registered within the portal. Upon acceptance of the result, the files may be downloaded under the “Request Downloads” option.

Circumstances of Correction

A few of the mistakes at risk of being committed while filing the first statement are the following:

Specification of an incorrect TAN number within the Challan and Statement.

Mismatching of the required Challan number (CIN).

Incorrect declaration of PAN numbers or the main points of the employee/employer.

The following are the various styles of corrections that may be made within the form:

C1 – Corrections in details of the deductor, apart from TAN Number.

C2 – Corrections in challan/deductor details.

C3 – Corrections in deductor details and/or challan details and/or deductee details, aside from PAN number.

C4 – Corrections in salary details.

C5– Addition of Challan and pertinent deductions.

TDS Correction Statement

Procedure for Correction

The correction may be enacted by following the procedures specified below:

Step 1:- Download

Download the actual TDS/TCS file for the applicable TAN.

Step 2:- Import and Formulate

Import the consolidated TDS/TCS file and formulate the Correction statement supported by the applicable category.

Step 3:- Key within the Details

Enter the provisional receipt number of normal and former correction statements.

Step 4:- Validate the Statement

The formulated correction statement should be confirmed through File Validation Utility (FVU).

Step 5:- Furnished  the Statement

The validated correction statement can now be furnished either with the respect to TIN-Facilitation Centres or through the NSDL website.