Correction in Error of Original TDS Statement Defaults

As you may be aware, Centralized
Processing Cell (TDS) intimates you of possible PAN Errors and Short Payment
Defaults, through an Intermediate Communication, during processing of Original
Quarterly TDS Statements. This change was incorporated in processing of TDS
Statements, in view of feedbacks received from deductors, to avoid defaults
that may arise due to inadvertent data entry errors.

The central point in the new process is
identifying errors in challan/ PANs and facilitating their corrections before
CPC (TDS) computes defaults in TDS statements. Following are the salient
features of Intermediate

What is new?
Step 1: CPC (TDS) will first
process Original TDS Statements till the stage of 26AS generation for deductees
Step 2: Short Payments and PAN
Errors will be identified in the preliminary check of the Original statements.
Step 3: 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
When the statement is placed on Hold,
CPC (TDS) will intimate you through following means:
at the Registered e-mail address at TRACES 
at Registered Mobile Number with TRACES 
will be delivered to the Deductor’s Inbox in TRACES 
The above correction needs to be carried
out by using Online Correction feature at TRACES after 24 hours of the
receipt of the Intermediate Communication and must be availed within 7 days of
receipt of such communication.
What are the advantages:
·   You
would have preliminary information of potential Short Payments and PAN Errors,
before the Original Statement is completely processed for Defaults and
Intimations are generated.
·  Correction
of above defaults using Online Correction can be submitted before final
processing of statements.
·   Above
action will facilitate avoidance of multiple Correction Statement filing later,
after the defaults are identified CPC (TDS) and Intimations have been sent.
What actions to be taken:
·     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. For any
assistance, please refer to the e-Tutorial available on TRACES.
·  Please
note that Digital Signature will be required to avail the benefit of complete
correction features, including PAN Corrections.
·   PAN
Verification facility on TRACES can be used for verifying the deductees. You
are requested to navigate to Statement/ Payment to locate PAN Verification in
the menu to download the file.
·   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 Dashboard to locate Consolidated TAN – PAN File.
·   The
action requires to be completed after 24 hours and within 7 days of
Intermediate communication from CPC (TDS).

It is hoped that the deductors will
avail of the time window to correct errors, if any. CPC (TDS) is committed to
provide best possible services to you.
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