Do You Need to Make TDS Corrections? Read this first!

Before you file returns/statements relating to TDS/TCS, make sure no TDS (Tax Deducted at Source) corrections are required. However if there are any mistakes in the original returns/statements, the Income Tax (IT) department has provided a procedure for submitting ‘correction returns/statements’.

Possible reasons for TDS corrections

• Mention of incorrect PAN number in the employee’s (deductee’s) TDS statement
• Incorrect deduction (less or excess) of TDS amount
• Incorrect (less or excess) utilisation of challan amount
• Mentioning incorrect details for LDC number or rate
• To change date of deduction or credit for TDS
• Mentioning incorrect details for challan

Before you file the TDS-corrected returns

1. Check the defaults raised for the quarter after the regular statement is filed. This can be done through the Quarterly Statement Status after 3 working days of filing your returns
2. For details about defaults, request and download the Justification Report from TRACES
3. Read the Justification Report and identify the defaults raised for the statement
4. Based on these defaults, select the type of correction to be filed

TDS corrections and filing methods

• Online through TRACES
• Offline through Software

Steps to file online TDS Corrections

1. Log in to TRACES and place a request for online correction through the ‘Request online correction option’
2. Make the relevant corrections as identified in the Justification Report
3. After completing and checking all corrections, submit the corrections for final processing by TRACES
4. After filing, check the status of the statement filed for any defaults

Steps to file offline TDS Corrections

All types of corrections can be done through the offline mode except the addition of a new challan. This mode is generally used when the digital signature is not registered in TRACES (for making online corrections).

1. Log in to TRACES. Request and then download the consolidated statement or the Conso file
2. Import the Conso file from TRACES to the software used for correction return filing (e.g. Saral TDS)
3. Make the relevant corrections as identified in the Justification Report
4. Generate the output files required to be filed or uploaded to the ITD website
5. File the corrected returns in the same way as regular returns
6. Once you file the correction, check the status of the statement filed for any defaults

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While filing your TDS-corrected returns, keep in mind that:

• You can file a correction return any number of times
• There is no time limit for correction return filing
• Filing online correction is not possible if the regular statement was previously filed as a paper return
• If the TAN in the statement is incorrect, you must immediately contact the concerned assessing officer for correction
• New challan correction is only possible through online correction mode

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To know more about TDS correction filing, contact us:

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