TDS Defaults & Procedures Under Traces For Online Correction By Taxguru Consultancy & Online Publication LLP

TDS DEFAULTS & PROCEDURES UNDER 

TRACES FOR ONLINE CORRECTION 

Downloaded from www.taxguru.in 1 

• The material contained in the ensuing slides is for general information, 

compilation and the views of the speaker and is purely for general 

discussion at the seminar and it should not be construed and binding 

either on the part of the Speaker or the Institute/Study Circle. It is not 

intended to be legal advice on any particular matter. Since the features 

of the website are dynamic in nature, it is advised in your own interest 

to refer to Government publications including the Income Tax Act and 

Rules before arriving to any final conclusion. Members are requested to 

refer to the Act, Laws, Rules and Decisions of the various courts of law 

from time to time depending on a particular case to case as may be 

applicable to them. 


1

PROLOGUE…… 

TDS IS NOT TEDIOUS 

T D S 

HREE EE YSTEM 


T D S 

HREE EE YSTEM 

Deduct 

Deposit 

AS PER PROVISIONS OF Ch. XVII-B 

WITHIN DUE DATES 

Declare 

BY FILING TDS STATEMENTS 


2

TDS PROVISIONS: AT A GLANCE 

DEDUCT 

AS PER 

CH.-XVII-B 

Timeline 

DEPOSIT 

BEFORE DUE 

DATES 

Timeline 

DECLARE 

BEFORE DUE 

DATES 

OK? YES 

OK? YES 

OK? 

YES 

NO NO NO 

•Deemed default u/s. 

201(1) 

•Penalty u/s. 271C/271CA 

• To the extent of TDS 

• 

• Interest u/s. 201(1A) 

• @1% till Dt of Deduction 

•@1.5% till Dt of deposit 

• Prosecution u/s. 276B 

•RI :3 months to 7years 

• Late Fee under Section 

234E 

•@200/- per day 

•To the extent of TDS 


TDS PROVISIONS: AT A GLANCE 

Failure to 

Furnish 

Form 16/ 16A 

Failure to 

Events 203A- Failure 

to Apply for / 

EventsDeduct Tax 

Quote TAN 

•Penalty u/s. 272A(2)(g) 

• @100/- per day 

•Till default 

continues 

• Penalty u/s. 272BB 

• Rs. 10,000/- 

• Disallowance u/s. 40(a)(ia) 

• Entire Expense 

• tax@ applicable rate 

• Intt. u/s. 201(1A) 

DISALLOWANCE U/S 40 

NOW RELAXED. 


3

TDS / TCS 

DEFAULT’s u/s. 201(1) 

& 

MISMATCHE’s u/s. 200A 

Reasons 

for Default 

Types of 

Default 

How to 

Correct? 

What is the 

Advantage? 


Rectification of Errors: Consolidated TDS/TCS File 

‣ Available to registered TANs at TDSCPC. 

‣ Mandatory from financial year 2007-08 to prepare correction return 

with consolidated TDS/TCS file and now available for online correction 

‣ Available on online request and successful verification 

‣ Consolidated file provided by Traces includes all the updates done 

vide correction statements (accepted at TIN central system) filed by 

deductor/ collector 

‣ Consolidated TDS/TCS file is emailed at email ID in TAN account AND 

also available for instant download 

‣ E-Tutorial on TAN registration and Consolidated file request on TDScpc 

website 


4

e-TDS/TCS Statements – Key points 

BE PROACTIVE 

• Check status of CHALLANS at TDSCPC website 

• Check status of TDS STATEMENTS at TDSCPC website 

• ‘Original’ return should be accepted at TDSCPC 

• File correction return to make changes in the TDS /TCS 

return filed (original return should be accepted) 


Possibility of Error while Data Handling 

Deductor (90%) 

• CIN Info-Manual 

TAN 

AMOUNT 

BSR Code 

Challan Sr. No. 

Date of Deposit 

•Deductee Details- 

PAN 

Section 

Amount 

Date of Deduction 

Date of Deposit 

Some Common Errors 

Challan Splitting 

Challan Combining 

Wrong TAN/PAN data 

Wrong Amount 

Wrong Challan Sr. No. 

Wrong Date 

Wrong Section/Sub-section 

Non-Marking “A”/ “P”/“B”/ “C” etc. 


5

Types of Default 

Non-marking of “A” deduction (197 Cases) 

Quoting Incorrect Section/Sub-section 

Referring to an outdated Rate chart 

Short 

deduction 

Considering wrong amount of payment 

Wrong amount of Payment 

Indicating wrong Deductee code 

Wrong Salary / Exemption information 

Quoting Invalid PAN (FY 2010-11 onwards) 



Non-marking of “B” for 4 th Quarter 

E-payment after 8:00 p.m. 

No interest paid in case of delay 

Late 

Payment 

Less interest paid for delayed payment 

Wrong CIN quoted for Interest Challans 

Wrong linking of Challan – Deductions 

TDS paid by cheque, realized after due date 

TDS paid 1 day late, bank holiday on due date. 


6


Splitting of Challan 

Short 

Payment / 

Non- 

Payment 

Combining of Challan 

Practically not paid and applied some dummy CIN 

Mistake in quoting the CIN* 

Wrong minor code 

*Challan Identification Number Contains 

• TAN + 

• AMOUNT + 

• DATE OF DEPOSIT + 

• BSR CODE + 

• CHALLAN SR. NO. 


Some Errors Attributable to System 

Higher Deduction Rate Applied despite Correct PAN; 

Interest Charged from Date of Deposit of TDS to Date of 

Processing; 

Period for Interest Calculation, based on an algorithm, gives 

errors i.e. misses out one month on certain occasions; 

Section 206AA being applied for TCS too. 

Charging of interest by System For FY March’10, where TDS 

has been deposited in May’10. 


7

Login with User-ID and password; 

Only available to Registered TAN; 

Rectification Of Errors 

Identify the Area which requires correction i.e. 

Challan, Deductee Details or Deductor Details; 

Request for Online Correction; 

Can be given to subordinate for correction 

through sub-user id 

Admin can review and submit 

Processing is done by the system only after 

submission. 


Faster Processing than that of Offline 

Submission; 

Segregation of Responsibility is 

possible; 

Facility or reviewing before final 

submission and confirmation; 

Saves Time and Money which is 

precious; 

Submissions can be done 24x7 and 

also on holidays; 

No manual intervention and more 

reliable; 

No requirements of Software or 

service of third person. 

Gives list of challan available for 

selection for adjustments. 

• Some corrections are not permitted 

online and need to download 

consolidated files which is time 

consuming; 

• Internet connectivity required to do 

the entire process online; 

• Entering of incorrect user-id or 

password or other details more than 

five times blocks the account for 24 

hours. 

• Digital signature mandatory except 

for challan correction, challan 

addition and interest payment. 


8

Rectification Of Errors 

DEDUCTOR 

FILES 

CORRECTION 

STATEMENT 

RETURN IS 

PROCESSED 

DEFAULT IS REMOVED 


Rectification of Errors 

TYPES OF 

CORRECTIONS 

CHALLAN DETAILS 

TDS 

STATEMENTS 

ASSESSING 

OFFICER 

BANK 

DEDUCTOR 


9


CORRECTIONS IN CHALLAN DETAILS 

ASSESSING 

OFFICERS 

(TDS) 

ASSESSMENT YEAR 

TAN 

SECTION CODE (94C/94J etc.) 

MINOR HEAD CODE (400/200) 

BANKS 

NAME OF THE DEDUCTOR 

AMOUNT 

MAJOR HEAD CODE (20/21) 

From Sept’ 2011, the Banks are allowed to correct A.Y. , TAN Section Code 

& Minor Head code , if approached within 7 days. 


Powers of the Assessing Officer 

• After completion of the time period of the Bank, Assessing 

Officer has the power to rectify the same; 

• Details of the Assessing Officer can be known easily through 

submitted TDS returns; 

• Assessing Officer has powers to rectify both the type of tax 

paid challans, whether it is online paid or offline payments 

through banks; 


10


Points to be remember while depositing TDS/TCS 

•Select correct minor head code (200) while making TDS/TCS 

deposits 

•Select correct minor head code (400) while making regular 

TDS/TCS payments arising out of Order u/s. 

201(1)/201(1A)/271C or 272A(2)(k) etc. 

•Ensure due diligence in quoting TAN, section code and 

assessment year while making TDS/TCS deposits 

•For deducting TDS/TCS refer to latest chart/rules for TDS/TCS 

rates 

•On due date deposit tax before 20.00 hours ( i.e. 8:00 p.m.) 

to avoid interest for late payment. 


Notification dated 20/03/2013 

Filing of TDS Returns 

• Electronically 

through Digital 

Signature (optional) 

Refund for Excess 

Claim to be made in 

Form 26B 

• Provided there is 

no outstanding 

demand or credit is 

not claimed by the 

Assessee 


11

Types Of Online Correction 

PERSONAL INFORMATION 

CORRECTION 

CHALLAN CORRECTIONS 

DEDUCTEE DETAILS 

CORRECTIONS 

TAG/REPLACEMENT OF 

CHALLANS 

TRANSACTION BASED 

REPORTS 


Login to TRACES 

Click on help icon next 

to each field for more 

details 

For more details on 

any screen, click on 

Help icon 

Enter userid and 

password 

Enter TAN / 

PAN/ AIN 

Enter the text as 

displayed in 

Verification Code 


12

Landing Page 

Landing page will be 

displayed 


Important Notes 

•Statements for FY 2007-08 onwards only will be available for Corrections. 

•Online Correction Matrix : 

Challan correction ( 

Interest , Modify/Add Delete/Add 

Pan correction Pan correction Add challan to 

Default Summary View Personal Information unmatched, matched) + 

Levy deductee salary 

(annexure 1) (annexure 2) statement 

deductee movement 

payment rows deductee rows 

Y Y Y Y Y Y Y Y Y 

Online corrections (with digital 

signature, 2013-14 onwards) 

Y Y Y N N Y Y N N 

Online corrections (with digital 

signature, prior to 2013-14) 

Y N Y N N Y Y N N 

Online corrections (without digital 

signature, 2013-14 onwards) 

Y N Y N N Y Y N N 

Online corrections (without digital 

signature, prior to 2013-14) 


13

Online Correction Request Flow 

Click on Help icon for 

help text for this 

screen 

Under ‘Defaults’ select 

‘Request for Correction’ 


Online Correction Request Flow - Submit Correction Request(contd.) 

Enter : Financial Year, Quarter and Form 

Type, correction category and latest 

token number 

click on ‘Submit 

Request’ to raise the 

request 


14


Error Message appears in 

case of entering incorrect 

search criteria 

User will be getting above error if : 

• Entered data is not pertaining to Financial Year , Quarter, Form Type and Latest Token Number 

Or 

• Statement is cancelled / Rejected for the selected search criteria. 



Error Message appears in 

case of duplicate request 

raised 


15


click on ‘Submit Request’ to 

raise the request 

Enter correct : Financial Year, Quarter and Form 

Type, correction category and latest token 

number ( latest token number as per processed 

statement) 

• Request can be submitted only if there is a regular / correction statement filled and processed. 

• All previous corrections for this statement have been processed. 


Online Correction Request Flow - Submit Correction Request 

Request number 

received 

Click here to track 

correction request or 

navigate ‘ Track Correction 

Request ‘ under ‘ Defaults’ 

menu 


16

Correction Request Flow - View submitted request 

Enter Request Number 

-Search Option 1 to 

view the request 

Either navigate through 

slide 9 or Under ‘Defaults’ 

select ‘ Track Correction 

Request’ 


Correction Request Flow - View submitted request 

Enter Request Date - 

Search Option 2 to 

view the request 


17

Correction Request Flow - View submitted request(contd.) 

Enter option 3 - ‘View ll’ 

to view the request 


Click this user in order to 

reassign the request to 

another sub user under the 

logged in admin 

Click on Inprogress 

View all request placed 

by himself and sub user 

under him in case of 

admin 

Click here to view 

the status 

description in detail 


Correction Request Flow - Assign Sub- User (contd.) 

Click here to assign the request 

to another sub user under the 

logged in admin 


18

Token Number Details 

Enter Authentication Code if 

the validation is done earlier 

and you have the 

Authentication Code 

Enter Token Number of only 

Regular (Original) Statement 

corresponding to the Financial 

Year, Quarter and Form Type 

displayed above 


Token Number Details (Contd.) 

Government deductors not having 

BIN details tick here and need not 

need provide BSR and Challan 

Serial Number below 

Click on Guide to select 

suitable Challan option 

Tick in Check Box for NIL 

Challan or Book 

Adjustment 

Tick here if you do not any Valid 

PAN corresponding to above 

Challan details 

Enter CIN details for a 

challan used in the 

statement 

Click on Guide to select 

suitable PAN amount 

Combinations 

PANs entered must be those 

for which payment has been 

done using the CIN / BIN 

entered on this screen 


19

Notes for Validation Screen 

• Authentication code is generated when you clear validation details for a statement 

for certain functionalities such as Download Form 16 / 16A, Download Conso File, 

Download Justification Report, etc. Authentication code generated for a particular 

statement will be valid for the calendar day (i.e., an authentication code generated 

on 10-Dec-2012 can be used only on 10-Dec-2012 to clear validation details for the 

same statement. It will not be valid the next day). 

• Validation will be bypassed for the same statement within the same session 

• Token Number must be of the statement of the FY, Quarter and Form Type displayed 

on the screen 

• CIN details must be entered for the challan which is deposited and mentioned in the 

statement corresponding to the FY, Quarter and Form Type mentioned above 

• Transfer Voucher details to be entered for government deductors 

• Amount should be entered in two decimal places (e.g., 1234.56) 


Notes for Validation Screen 

• Maximum of 3 distinct PANs and corresponding amount must be entered 

• If there are more than three such combinations in the challan, user can enter any 3 

• If there less than three such combinations in the challan, user must enter all (either 

one or two) 

• PAN mentioned must be that for which payment has been done using the challan / 

Transfer Voucher mentioned on this screen 


20

Challan Correction 

Select ‘ Challan 

Correction’ from drop 

down 



Select a tab ‘List of Matched 

Challans (Overbooked 

challans will also be shown 

in matched challan tab ) 

Important 

Notes 

Select a row and click 

on ”Edit matched 

Challan Details” 

•All the Matched challan in the statement will be displayed. 

•Matched Challan cannot be tagged. 

• Provisionally Matched BIN will be displayed under Match Challan Tab. 


21


Important Notes (for Matched Challan) : 

1. Surcharge amount of challan / BIN from the statement filed 

by deductor with regards to the statement selected for filing 

correction .Amount will not be editable for BINs. 

2. Education Cess amount of challan / BIN from the statement 

filed by deductor with regards to the statement selected for 

filing correction. Amount will not be editable for BINs. 

3. Interest amount in the challan / BIN from the statement filed 


correction. Amount will not be editable for BINs. 

4. Other amount in the challan / BIN from the statement filed 


correction. Amount will not be editable for BINs. 

5. Amount of interest to be claimed from this challan / BIN. User 

must directly change value in the field. Amount will not be 

editable for BINs. 

6. Amount to be claimed as 'Others' from this challan / BIN . 

User must directly change value in the field. Amount will not 

be editable for BINs. 

Edit fields in the 

overlay and click on 

‘Save’ 



Edited challan detail 

will be highlighted 

User can reset value in the 

challan. This will replace edited 

values with values from the 

latest statement 


22


Select ‘Newly dd Challans’ to 

add the challan. Please refer the 

E-Tutorial -Online Correction- Add 

Challan to Statement 




Select challan to be 

added on deductee 

row 

To know the procedure to 

view or move deductee 

row refer e-tutorials - 

Resolution for Overbooked 

Challan 


23

Challan Correction - Unmatched 

Select here to view 

‘list of Unmatched 

challan’ 

Row select and click on ‘Edit 

Unmatched Challan Detail’ to edit 

Prior to 2013-14, only unmatched challans will be editable and not BIN 


Challan Correction - Unmatched 

Select a row and 

edit the details 


24

Challan Correction - Unmatched Challan(contd.) 

1. Levy :Levy will be displayed as 'NA' and 

be disabled for statements prior to FY 

2013-14. 

2. Amount to be displayed in exactly two 

decimal places (e.g., 2450.09, 2450.90) 

3. 'Yes' indicates Government deductor 

Choose to tag a challan 

/ BIN to the statement 

” 

1. . Amount claimed as total tax deposited for 

all deductees tagged to this challan / BIN 

2. Amount to be displayed in exactly two 

decimal places (e.g., 2450.09, 2450.90) 

3. Amount of interest to be claimed from 

selected challan / BIN 

4. Amount to be claimed as 'Others' from 

selected challan / BIN 

• For Unmatched challans, if user tags a challan , value in the existing challan will be replaced with 

value from the tagged challan. 



Select the challan 

details 

Click here to tag the 

selected challan 

Challans with +/- Assessment year will be made available and shown. User can select the relevant challan accordingly. 


25


Edit the details 

Important Notes : 

1. BSR Code should be of the challan which has available 

balance. 

2. Date on which challan with available balance was deposited in 

bank . 

3. Surcharge amount of challan / BIN from the statement filed 


correction .Amount should not be editable for BINs. 

4. Education Cess amount of challan / BIN from the statement 

filed by deductor with regards to the statement selected for 

filing correction. Amount should not be editable for BINs. 

5. Interest amount in the challan / BIN from the statement filed 


correction. Amount should not be editable for BINs. 

6. Other amount in the challan / BIN from the statement filed 


correction. Amount should not be editable for BINs. 

7. Section code under which tax was deducted for the PAN. 

From FY 2013-14 onwards, this field will not be there. 

8. Amount of interest to be claimed from this challan / BIN. 

User cannot edit this field by tagging a challan. User must 

directly change value in the field. Amount should not be 


9. Amount to be claimed as 'Others' from this challan / BIN . 

User cannot edit this field by tagging a challan. User must 

directly change value in the field. Amount should not be 


10. Save the edited detail. 



Edited row is 

highlighted 

” 

Click on ‘submit correction statement’ to 

submit the change made in the default and 

navigate to ‘ ction Summary’ 


26

Online Correction - PAN Correction 


PAN Correction 

Select ‘ P N 


down 


27

PAN Correction - Invalid PAN Annexure 1 

Click on 'Invalid PAN 

nnexure 1’ to view the 

list of invalid PAN in the 

statement 

User can search either 

using PAN filter or CD/DD 

Record Number filter 


List of Invalid PAN will be 

displayed as per 

statement 

Full form of Abbreviation used in above Screen : 

CD : Challan Detail 

DD : Deductee Detail 



Once the Row selected, 

Changed PAN field will be 

editable 

Important 

Notes 

•Valid PAN to Valid PAN correction can be done only once . 

•Invalid PAN can be changed to Valid PAN only. 


28


Change will be automatically 

saved once the action status is 

updated as saved 

‘Status’ column will display 

error message if PAN is invalid 

or success message if details for 

the deductee row are saved 

Edited Row can 

be Viewed 

Click here to submit the 

correction request 

Invalid PAN successfully 

changed into Valid PAN 

and saved 

Name as per PAN Master will 

be populated in ‘Name as per 

Changed P N’ column 

•User can reset edited values by deleting P N entered in ‘Changed P N’ field. Value of new name will also be removed. 


PAN Correction - Valid PAN Annexure 1 

Select ‘Valid P N 

nnexure 1 ‘ from given 

Tabs 




List of valid PAN will be 

displayed as per 

statement 

•For Valid PANs, deductee rows f or which v alid to v alid PAN correction has been done will be locked. User cannot edit PAN f or this row 


29


Select ‘Valid P N 


Tabs 



editable 







Valid PAN successfully 


and saved 




Edited Rows can 

be viewed 

•User can reset edited values by deleting P N entered in ‘Changed P N’ field. Value of new name will also be removed. 


30

View Edited Rows - For Verification 



Select ‘Invalid P N 


Tabs 





31




editable 









and saved 




• User can reset edited values by deleting P N entered in ‘Changed P N’ field. Value of new name will also be removed. 

• For Valid PANs, deductee rows for which valid to valid PAN correction has been done will be locked. User cannot edit PAN 

for this row. 


32


Select ‘valid P N 


Tabs 




•In case of Annexure 2, only DD Record number is required for search in CD/DD Record Filter. 





editable 

Edited Rows can 

be viewed 

Click here to submit the 

correction request 


33




and saved 








• User can reset edited v alues by deleting PAN entered in ‘Changed PAN’ f ield. Value of new name will also be remov ed. 


Online Correction 


34

Personal Information 

Select ‘ Personal 

Information’ from drop 

down 


Personal Information 

Click on Check box to 

Replace the Personal 

Information as 

mentioned while 

registering with 

Traces 

After editing personal 

information click on 

save 

Address and Communication details 

of the organization will be prepopulated 

from the latest 

statement filed by deductor for the 

selected FY, Quarter and Form Type 

Click here to reset value 

in all fields as per latest 

accepted statement 

User can click here to 

submit the correction 

statement 


35

Transaction Based Report (TBR) 


Important Points 

• A transaction report may be generated from the TRACES site which has the detail of 

all the transaction entered into by the deductor with the non-resident deductee who 

are not having PAN. 

• Report for FY 2013-14 and onwards can be download from TRACES website. 


36

Downloading Report (contd.) 

Select ‘Transaction 

Based Report’ under 

‘Downloads’ menu ’ After selecting F.Y. and 

quarter for which 

transaction based report 

(TBR) is required , Click on 

‘Go’ 



After confirming the 

details of the 

authorised person, 

click on Submit’ 

If any change is required 

in the details of 

authorized person, 

Admin user can update 

details in profile section. 


37

Downloading Report - KYC 

Enter Token Number of 

only Regular (Original) 

Statement corresponding 

to the Financial Year, 

Quarter and Form Type 

displayed above 

Enter CIN details for a 

challan used in the 

statement or BIN details 

for a Government 

deductor 

Click on ‘ 

Proceed’ 


Request Confirmation 

Request Number 

will be available 

here 


38


Click on ‘Requested Downloads’ under 

‘Downloads’ menu to download the TBR 



Option 1 :Select the 

request number and 

click on ‘Go’ to view the 

specific request number 


39

Downloading Report (contd.) : to check the availability of the Transaction based report 

any of the three search can be used . 

Option2 :Select the 

request period and click 

on ‘Go’ to view the 

specific request number 

1 



Option 3:Click on ‘View 

ll’ to view all download 

requests 


40


Once the request is available and selected, both ‘ 

HTTP Download’ and ‘Download Manager’ button 

will active 

Select the request 

with status as 

‘ vailable’ for 

downloading 



• HTTP Download is useful to download small files. It will directly download file for the 

user 

• Download Manager is useful to download large files and where internet bandwidth 

is slow. This will launch a window, which will download an applet. The Applet is a 

large file, hence first time download might take time. But for subsequent requests, it 

should load immediately. User can use this tool to download file. This tool has the 

ability to resume download in case of failure 

• Transaction Based Report (TBR) will be available in Zip file format. To extract this file 

into PDF format Latest version of Transaction based Report generation utility is 

required. 


41

1. If the latest version of Transaction based Report PDF generation utility is already 

downloaded and saved in the system earlier then click the utility. On clicking the 

utility slide no. 17 will come directly. 

2. And If Utility is not Downloaded earlier then follow the below mentioned 

procedure(contd.) 

Click here to download 

the Utility 


If Utility is not Downloaded earlier (contd.) 

Fields marked by 

asterisk are 

mandatory 

Click on’ Submit’ 


42

Downloading Utility (contd.) 

Click here to 

download the 

TBR 


Generating TBR (contd.) 

Password to open the Zip file is TAN. 

Select Zip Files, enter 

Password as your 

TAN and select 

destination folder to 

save PDF files. 

Select digital certificate to 

digitally sign the PDF files. 

Certificate details 

will be displayed 

here. 

Click on ‘Proceed’ to 

continue with 

generation of PDF files. 


43


Click on ‘yes’ in case user 

does not have registered 

digital signatures otherwise 

‘no’ 



Error message will pop up indicating PAN 

validation mismatch if user selects 

incorrect digital signature certificate PFX 

file ( not associated with the same PAN) 

and will not be allowed to proceed. 


44

Generating TBR 

Click here to view PDF 

format of generated 

Transaction Based Report 


Transaction Based Report 

PDF format of 

Transaction Based 

Report is generated 


45

Online Correction - Add / Modify 

Deductee Detail 


Modify / Add Deductee Details 

Select ‘Modify/ dd 

Deductee Detail’ from 

drop down 


46

Modify / Add Deductee Details - Default Deductee 

Select tab ‘ Default 

Deductee’ 

Click on hyperlinks to 

view the details of SP an 

SD 

Enter PAN as per statement 

or CD Record number or 

SP/SD to edit the deductee 

row 


Full form of abbreviations : 

•CD - Challan Detail 

•DD - Deductee Detail 

•SP - Short Payment 

•SD - Short Deduction 



Deductee record will be 

displayed as per option 

selected 


47


Select deductee row to 

edit 

If user select ‘ Edit 

Deductee Row’ Slide 28 

will be displayed for 

edition 

Once user select the 

deductee row all three 

buttons will be active 

If user select ‘ reset’, the 

deductee row values will 

be reset to the original 

values 

If needed User can view details 

of the challan /available 

balance for the deductee row 

by clicking on ‘View Challan 

details’ 

View Challan details - User who may want to see the challan to which the deductee row pertains, so that when he edits/modifies the 

row, he is aware of the challan balance available. 




Edit the 

deductee row 

Date of Payment or Credit -Date on which payment was made to 

deductee. Date cannot be future date. 

Amount Paid or Credited -Transaction Amount is the amount paid 

/ credited to deductee on transaction date. Amount must be greater 

than equal to zero . 

Total Tax Deducted - Total Tax Deducted / Collected is the sum of 

TDS / TCS, Surcharge and Education Cess . Amount must be less than 

equal to amount paid or credited. 

Total Tax Deposited - Amount cannot be greater than TDS 

deducted. Amount must be less than equal to total tax deposited in 

CD detail 

Amount to be displayed in exactly two decimal places (e.g., 

2450.09, 2450.90) 

Rate at which deducted / collected - Rate at which tax is deducted 

for a particular deductee. Rate to be mentioned in exactly four 

decimal places. 

Reason for Non deduction/ lower deduction - .It should be 

mandatory if TDS deducted = zero and TDS rate = zero, flags 

applicable: A,B,S,T,Y,Z. 

Number of Certificate - It should be mandatory when user raised 

Flag A / B for respective forms . 

After editing click 

on ‘Save’ 


48

Modify / Add Deductee Details - All Deductee 

Once the detail edited, 

row will be highlighted 



statement 



Select tab ‘ ll 

Deductee’ 

Enter PAN as per 

statement or CD Record 

number to edit the 

deductee row 




row 


49


Select tab ‘ dd New 

Deductee’ 

All the Challans in the 

statement with Available 

balance will be shown 

User Can add new 

Challan/Book Entry from 

OLTAS by Clicking the 

buttons 


Modify / Add Deductee Details - Add New Deductees 

Select Challan to tag 

with deductee row 


50


After selecting 

challan and click on 

Add Deductee Row 

Important 

Notes 

Click on ‘Save 

deductee’ after add / 

modify deductee row 

Click on Submit 

Correction Statement 

for submission 

Add deductee record or 

modify in case of modify 

deductee record will be 

pre-populated for edition 


Modify / Add Deductee Details 

Select ‘Modify/ dd 

Deductee Detail’ from 

drop down 


51


Select tab ‘ Default 

Deductee’ 


view the details of SP an 

SD 




row 


Full form of abbreviations : 

•CD - Challan Detail 

•DD - Deductee Detail 

•SP - Short Payment 

•SD - Short Deduction 



Deductee record will be 

displayed as per option 

selected 


52


Select deductee row to 

edit 

If user select ‘ Edit 

Deductee Row’ Slide 28 

will be displayed for 

edition 

Once user select the 

deductee row all three 

buttons will be active 

If user select ‘ reset’, the 

deductee row values will 

be reset to the original 

values 

If needed User can view details 

of the challan /available 

balance for the deductee row 

by clicking on ‘View Challan 

details’ 

View Challan details - User who may want to see the challan to which the deductee row pertains, so that when he edits/modifies the 

row, he is aware of the challan balance available. 




Edit the 

deductee row 

Date of Payment or Credit -Date on which payment was made to 

deductee. Date cannot be future date. 

Amount Paid or Credited -Transaction Amount is the amount paid 

/ credited to deductee on transaction date. Amount must be greater 

than equal to zero . 

Total Tax Deducted - Total Tax Deducted / Collected is the sum of 

TDS / TCS, Surcharge and Education Cess . Amount must be less than 

equal to amount paid or credited. 

Total Tax Deposited - Amount cannot be greater than TDS 

deducted. Amount must be less than equal to total tax deposited in 

CD detail 

Amount to be displayed in exactly two decimal places (e.g., 

2450.09, 2450.90) 

Rate at which deducted / collected - Rate at which tax is deducted 

for a particular deductee. Rate to be mentioned in exactly four 

decimal places. 

Reason for Non deduction/ lower deduction - .It should be 

mandatory if TDS deducted = zero and TDS rate = zero, flags 

applicable: A,B,S,T,Y,Z. 

Number of Certificate - It should be mandatory when user raised 

Flag A / B for respective forms . 

After editing click 

on ‘Save’ 


53


Once the detail edited, 




statement 



Select tab ‘ ll 

Deductee’ 

Enter PAN as per 

statement or CD Record 

number to edit the 

deductee row 




row 


54


Select tab ‘ dd New 

Deductee’ 

All the Challans in the 

statement with Available 

balance will be shown 

User Can add new 

Challan/Book Entry from 

OLTAS by Clicking the 

buttons 



Select Challan to tag 

with deductee row 


55


After selecting 

challan and click on 

Add Deductee Row 

Important 

Notes 

Click on ‘Save 

deductee’ after add / 

modify deductee row 

Click on Submit 

Correction Statement 

for submission 

Add deductee record or 

modify in case of modify 

deductee record will be 

pre-populated for edition 



- Resolution for 

Overbooked 

Challan 

(Movement of 

deductee row) 

1 


56


Select ‘ Challan 


down 


Challan Correction - Overbooked Challan 

Select a tab ‘List of Matched 

Challans (Overbooked challans 

will also be shown in matched 

challan tab ) 

Important 

Notes 

Select the challan 

which is overbooked 

Click here to select 

the deductee row 

to be moved out 

from overbooked 

challan 


57


Specific deductee row can also 

be searched by entering the 

PAN as per statement 

On selecting the challan, all 

the underlying deductee 

rows will be displayed 



Click here to move out 

the selected 

deductee row 

Select the deductee row to be moved out 

to a different challan with available balance 

equal to or more than the TDS deducted 

amount of selected deducted row (s) 

Note: Deductee rows can be moved to a existing challan in the statement 

with sufficient available balance or to a newly added challan in the 

statement. 


58


List of all challans in the 

statement with available 

balance will be displayed 

•List of challans with balance greater than total tax deposited of the selected 

deductee rows are displayed 



Important 

Notes 

Select the challan from the list on 

which available balance is more or 

equal to the Tax deducted amount 

of the deductee row to be moved 

Click on save 

Example : 

Deductee Detail Record 1 : 2000 

Challan Detail Record 1 : 2000s 

Deductee Derail Record 2 : 2000 Challan Detail Record 2 : 5000 

Deductee Detail Record 3 : 1000 Challan Detail Record 3 : 5200 

Total TDS deducted fort he tow to be moved : 5000 

As Challan with available balance should be equal to or more than TDS deducted amount , so in this case Deductee Detail 

Record 1,2,3 can be moved only either Challan Detail Record 2 or Challan Detail Record 3 


59


The impacted 

challans will be 

highlighted 



Moved out deductee 


in red in the original 

challan. 

Click here to submit 

the correction 

statement 


60

Tag / Replace 

Challan 


Selecting Tag Challan Option 

Under ‘Defaults’ 

select ‘ Tag/ 

Replace Challan 


61

List of Demand for all Financial Years 

Table will display 

demand for all 

financial years 

Copyright © 2012 Income Tax Department 7 



Select the row to 

Tag/ Replace the 

challan 



62

Tag Challan 

View the tagged 

challan details by 

clicking the 

hyperlink 

After selecting the 

row to Tag/ 

Replace the challan 

Click on Tag 

Challan 

Important 

Notes 



Tag Challan 

View the tagged 

challan detail 

Click on ‘ Cancel’ to 

close the overlay 



63

Tag Challan 

Enter challans 

details to filter 

and click on ‘ 

Go’ 


Tag Challan 

• Only Unclaimed and partially claimed 

challans will be shown in output table. 

• Challans shown in output will be of the 

range +/-1 year of the year of demand 


64

Create Request 


Select challans to tag with a 

demand, enter the amount to 

be consumed from challan 

click on ‘Create 

Request’ button 


Confirmation Screen 

Click on ‘Yes’ to 

create the request or 

‘ No; to go back to 

the previous slide 


65

Request Created 

Request number will 

be displayed 


Selecting Replace Challan Option 


select ‘ Tag/ 



66


Table will display 

demand for all 

financial years 

Click on ‘Replace 

Challan’ 

Important 

Note 


List of Tagged Challan with available balance 

List of Tagged 

challans with 

available balance 

are displayed 


67

Create Request 

select challans to tag with a 




List of Un-tagged challan with available balance 

Enter the credentials 

to view the list of Un- 

Tagged Challan 


68


Important 

Notes 

List of Un- Tagged 

challans with 

available balance 

are displayed 



select challans to tag with a 



click on ‘Create 

Request’ button 


69

Confirmation Screen 

click on ‘Yes’ to 

create the request or 

‘ No; to go back to 

the previous slide 


Request Number 

Request number will 

be displayed 


70

Track Request for Tag / Replace 

Challan 


Track Request for Tag Challan 


select ‘ Track 

Request for Tag/ 



71

Track Request for Tag Challan 

Select the Financial Year 

and enter the request 

number to view the 

request status 

Following Status are possible for a Tag/Replace challan request: 

Submitted: When the request for Tag/Replace challan has been successfully submitted 

Processed: When the request has been successfully processed 

Failed: When the request fails either due to deletion of demand by AO or due to 

insufficient balance in challan 


Action Summary - Submit to Admin User 

Click on Submit to 

Admin 

Above Screen will be appeared in case correction 

submitted by Sub-user 


72

Action Summary 

Request successfully 

submitted to Admin 

User 

Request will be submitted to Admin user . Sub-user cannot submit the 

correction from 

‘ Correction Ready for Submission’. 

Sub-user should only be able to view statements saved by them 


Action Summary - View Edited Statement 

dmin user Click on ‘Confirm’ the 

correction to be submitted by sub 

user and Correction Ready for 

Submission 

” 

Click on hyperlink to 

view the edited detail 

for specific default 

Both Admin User and Sub-user can 

able to view statements saved by 

them 


73

Action Summary - Admin User Login 

User can able to view correction changes prior to submission even if logs out and later logs in . 


Action Summary - Admin User 

Select the row for action 

Click on ok to take 

action for cancellation 

Click on ‘ Cancel Statement’ 

in case user wants to 

cancel the correction 


74

Action Summary - Admin User 

Select the row for action 

Click on ‘ View 

Statement’ to 

proceed further 


Action Summary - Submit For Processing 


view the Action 

Summary 

Select ‘Submit for Processing’ to 

proceed further’ , in case edit 

select ‘ Edit Correction 

Statement’ 

Admin User proceed further to attached the digital signature and submit the correction 


75

Action Summary- Attach Digital Signature 

Select and attach digital 

Signatures 

Digital Signatures are not mandatory in challan correction. 


Action Summary - Token Number Generated 

Click on Help icon 

for help text for 

this screen 

Message showing that 

correction statement is 

successfully submitted 

Note down the Token Number for future reference 


76

Online Correction System At Glance 

Login 

Valid & Invalid PAN 

both can be 

changed 

Booked Challan 

Modification not 

permitted 

Signature 

Registration 

PAN Modification, 

Personal Info & 


permitted 

Option to view 

corrections before 

submitting 

Return submitted to 

TDScpc 

Correction available 

from FY 07-08 


request to be closed 


Date 

Gist of Communications from TDSCPC 

Communication Reference 

25/04/2014 Communication regarding short deduction defaults in tds 

statements 

26/04/2014 Communication regarding short deduction defaults in 24Q F Y 2012- 

13 TDS statements 

05/07/2014 Communication for payment of outstanding short payment defaults 

23/07/2014 Communication for payment of outstanding short payment defaults 

for cases where demand is more than Rs 1 lacs and there is a short 

payment than the amount deducted as stated in the Return 

17/09/2014 Follow up for NIL TDS deposited during the financial year 

29/11/2014 Notice for availability of Default status from 2007 onwards and 

procedure to file Correction statements 

03/12/2014 Intimation regarding outstanding TDS demand and unconsumed 

challans from F.Y 2007-08 to F.Y 2014-15 


77

Reply to Online Communication From TDScpc 




78





79





80

Chart of Password for Deductor 


Password for the Tax Payer 


81

e-Tutorial 

Declaration of Non Filing of 

Statements 


Landing Page 

Landing page will 

be displayed 


82

Declarationforor Non – Filing 

of Statement 

(contd.) 

Click on Helpicon for help text for 

this screen 

UŶder StateŵeŶt/ PayŵeŶts 

select DeclaraoŶ for NoŶ- FiliŶg of 

StateŵeŶt 



of Statement 

Enter FY, Qtr, Form 

(cont 

type ntd.) 

and reason 

for non filing of statement 

•If the user has filed a statement for a Financial Year, Quarter, Form Type as per TRACES record, system will not be allowed 

to declare non filing for this statement. 

•In case of permanently business closed, pop up with info message to be displayed. User will be allowed to 

proceed for 

declaration for non-filing. 

•If deductor has declared a statement for non-filing, default intimation for non-filing will not be send to the Deductor. 


83


of Statement 

(contd.) 

Click oŶ I Agree to 

proceed further 


Declaration for Non – Filing of Statement (contd.) 

Click oŶ Proceed after 

confirming the verification 

detail or back to go on slide 4 


84


of Statement 

Declarationfor non filing 

of statement has 

successfully submitted , 

use will receive 

confirmatione-mail for the 

same. 


Changes in the System of Processing 

CPC to first process Original Statements till the stage of Form 26AS generation for deductees 

reported; 

Short Payments and PAN Errors will be identified in the preliminary check of the Original 

statements; 

The statements will be placed “On Hold” for further processing and an opportunity will be 

provided to correct potential defaults of Short Payment and PAN Error. CPC to intimate such 

defaults on Mobile by SMS, e-mail in registered email id and in Deductors INBOX in Traces; 

The above correction needs to be carried out by using Online Correction feature at TRACES within 

7 days of above communication. 


85

Advantages of Processing 

– preliminary information of potential Short 

Payments and PAN Errors, before the Original 

Statement is completely processed for Defaults 

and Intimations are generated. 

– Online Correction can be submitted before 

final processing of statements; 

– avoidance of multiple Correction Statement 

filing later, after the defaults are identified CPC 

(TDS) and Intimations have been sent.sent 


Line of Action 

– Take Note of the Communication and do not ignore the 

same; 

– Online Correction facility can be used for such Short 

Payments and correction of PAN; 

– Digital Signature is Mandatory for change of PAN in 

Online Correction; 

– You can make use of the “Consolidated TAN - PAN File” 

that includes all the valid PANs attached with the 

respective TANs. To avail the facility, please navigate to 

locate file on “Dashboard; 

– This has to be completed within 7 days of Intimation. 

Thereafter Return will be processed by TDS CPC. File 


86

Request for Resolution 

Under ‘Communications’, click 

on ‘Request for Resolution to 

log the request 


Logging Request for Resolution (contd.) 

Fields marked by asterisk (*) are 

mandatory. Select category under 

which Resolution Request is to be 

logged 

5 


87

Request for Resolution - Category : Statement Rejection Reasons 

Fields marked by asterisk 

(*) are mandatory 

From drop down , select 

the issue regarding 

statement rejection 

Either comments must be entered or 

supporting documents must be 

uploaded to log a Resolution Request 

6 


Request for Resolution - Category : Form 16/16A (contd.) 



From drop down , select the 

issue regarding Form 16 / 16A 

7 


88

Request for Resolution - Category : Form 16/16A 

If selects “ Satisfied with 

provided resolution”, then user 

will return back to the TRACES 

home page. 

Notes will be displayed for issues 

with the popular resolution 

If selects not satisfied, user can 

submit request for resolution 

by entering comments and 

clicking on submit 

Downloaded from www.taxguru.in 

8 177 

Request for Resolution - Category : Conso File (contd.) 




the issue regarding 

Conso file 

Downloaded from www.taxguru.in 

9 178 

89

Request for Resolution - Category : Conso File 

Either comments should be 

entered or supporting documents 

must be uploaded to log a 

Resolution Request 

Supporting documents must be in 

.doc, .docx, .xls, .xlsx, .pdf, .zip 

formats only and file size must not 

be more than 2 MB 



Request for Resolution - Category : TAN-PAN Master 




the issue regarding TAN- 

PAN Master 



90

Request for Resolution - Category : PAN Verification 



From drop down , 

select the issue 

regarding PAN 

Verification 

12 


Request for Resolution - Category : Online Correction 



From drop down , select the 

issue regarding Online 

Correction 

13 


91

Request for Resolution - Category : Default/ Demand (contd.) 

Select resolution 

request sub category 


(*) are mandatory. 

14 


Request for Resolution - Category : Default/ Demand 

It is mandatory to write atleast 

one issue . Once default 

amount is entered ,issue will be 

active 

Enter Token Number of 

correction submitted 

15 


92

Request for Resolution - Category : Intimation Send 



Notes will be displayed for below issues 

with the popular resolution e.g. update 

profile or correct the address in the 

statement and ticket will not be logged 

If user selects not satisfied, he 

can submit request for 

resolution by entering 

comments and clicking on 

submit 

16 


Request for Resolution - Category : Form 26AS 



Either comments must be entered or 

supporting documents must be 

uploaded to log a Resolution Request 

17 


93

Request for Resolution - Category : Refund of Challan 

Select drop down values for submitting the 

request i.e. Consumption details incorrect of the 

challan, Wrong Deductor details 

Drop down values will be as 

per the status shown on 

TRACES 

18 


Request for Resolution - Category : KYC 

Select the issue for 

KYC under drop down 

If selects “ Satisfied with 

provided resolution”, then user 

will return back to the TRACES 

home page. 

Notes will be displayed for 

below issues with the 

popular resolution as per 

the excel 

If selects not satisfied, user can 

submit request for resolution 

by entering comments and 

clicking on submit 

19 


94

Request for Resolution Ticket logged 

Acknowledgement message 

after request is logged 

20 


Resolution Tracking (contd.) 

Under Communication, 

Select Resolution Tracking 

Select either option 1 or 

option 2 . Enter the 

mandatory information with 

asterisk mark(*) 

21 


95


Select specific ticket 

number to track the 

ticket 

Click here to view 

ticket details 

22 



Ticket has been reopened 

only when tickets status 

is ‘Closed’ 

'Provide Clarification ' 

button will be enabled 

only if Ticket Status is 

'Clarification Requested' 

Go to previous slide 

23 


96

Contact Details changed 


Thank you…..!!!! 


97

Compiled by CA Avinash Rawani 

Rawani & Co, 

Chartered Accountants 

B-206, Hinal Heritage, Patel Wadi, S.V.P.Road, 

Near Chamunda Circle, Borivali West, 

Mumbai 400092 

E-mail : avinash@carawani.com 

Website: www.carawani.com 

• The views stated in the material and also discussed are purely of the 

compiler for the discussions at the Study Circle and should not be used for 

any legal interpretation. Any decision to be taken by the user of this 

information is to be taken after studying the requisite provisions of the 

respective Act and specific applications to particular client. Neither the 

compiler nor the study circle shall be responsible for the same. 


98

TDS Defaults & Procedures Under Traces For Online Correction By Taxguru Consultancy & Online Publication LLP

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