Online resolution of ‘Short Payment default’ on account of unmatched challans

TDSCPC has issued new instruction under which it has
been directed to the the Tax deductors that if there are Short payment in a
statement filed by deductor then deductor have to settle the default first
otherwise he will not be able to download the Form 16/16A of the relevant

The instruction
has been reproduced here under:
Dear Deductor,
We are glad to inform that the Online Correction
functionality provided by CPC (TDS) has been availed by a large number of
deductors for the purpose of carrying out corrections and over 2 Lakh Online
Corrections have been submitted. The corrections include resolution of Short
Payment Defaults that relate with unmatched challans. You are informed that
TRACES enables Online resolution of “Short Payment default” on account of
unmatched challans. The deductor has an online view of all available unconsumed
challans, which can be tagged with unmatched challans, to close the above
Further, as you are aware that at the time of filing
TDS statements, it is mandatory to quote the challan particulars through which
TDS payments have been made. However, it is observed that:
At times, data entry mistakes are committed, while
reporting tax payments in the respective TDS statements.
Though CPC (TDS) makes best efforts to match such
challans, however, they may remain unmatched leading to “Short Payment” demand.
The above results into issuance of notices by the CPC
(TDS) and field TDS officers.
To make the resolution process non-intrusive, CPC
(TDS) proposes a new change at the time of submitting request for download of
TDS Certificates (Forms 16/ 16A) for relevant period. 
Actions to be
Following are key
information to be noted in this regard:
You are requested to take appropriate action at the
earliest for closure of the Short Payment defaults, to avoid any inconvenience
in downloading of TDS Certificates.
The Online Correction facility of TRACES needs to be
used for closure of the Short Payment default, available even without digital
CPC(TDS) recommends to close the above default by
tagging unconsumed challans, if available in CPC(TDS) system, through Online
Details of defaults will be provided during Online
Correction process after logging into the web portal “TRACES”.
In case there is no available challan for consumption,
the deductor is required to first deposit the due tax in the bank and then the
same challan will be available for tagging in CPC(TDS) system after around 3-4
days of deposit.
Once the challan is suitably tagged and Online
Correction is submitted to CPC(TDS), it shall process the statement, thereby
rectifying the Short Payment default
The user will not be able to download TDS Certificates
for the relevant TDS statement until closure of the above default.
You can refer to our e-tutorial and FAQs on “TRACES” website for necessary help.For
any assistance, you can write to or call our toll-free
number 1800 103 0344.
CPC (TDS) is committed to provide best possible
services to you.

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