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
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.
PROLOGUE
TDS IS NOT TEDIOUS
HREE
EE
YSTEM
HREE
Deduct
Deposit
Declare
EE
YSTEM
AS PER PROVISIONS OF Ch. XVII-B
WITHIN DUE DATES
BY FILING TDS STATEMENTS
TDS PROVISIONS: AT A GLANCE

DEDUCT
AS PER
CH.-XVII-B
Timeline
OK?
YES
NO
DEPOSIT
BEFORE DUE
DATES
Timeline
OK?
YES
NO
Deemed default u/s.

201(1)
Penalty u/s. 271C/271CA
To the extent of TDS
DECLARE
BEFORE DUE
DATES
OK?
YES
NO
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
Events 203A- Failure
Penalty u/s. 272A(2)(g)

@100/- per day
Till default
continues
to Apply for /
Quote TAN
Penalty u/s. 272BB

Rs. 10,000/-
Failure to
Events Deduct Tax
Disallowance u/s. 40(a)(ia)

Entire Expense
tax@ applicable rate
Intt. u/s. 201(1A)
DISALLOWANCE U/S 40
NOW RELAXED.
TDS / TCS
DEFAULTs u/s. 201(1)
&
MISMATCHEs 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
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%)
Some Common Errors

CIN Info-Manual
TAN
AMOUNT
BSR Code
Challan Sr. No.
Date of Deposit
Deductee DetailsPAN
Section
Amount
Date of Deduction
Date of Deposit
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.
10
Types of Default
Non-marking of A deduction (197 Cases)
Quoting Incorrect Section/Sub-section

Referring to an outdated Rate chart
Considering wrong amount of payment
Short
deduction
Wrong amount of Payment

Indicating wrong Deductee code
Wrong Salary / Exemption information
Quoting Invalid PAN (FY 2010-11 onwards)
11
Types of Default
Non-marking of B for 4th Quarter
E-payment after 8:00 p.m.
No interest paid in case of delay
Less interest paid for delayed payment
Late
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.
12
Types of Default
Splitting of Challan
Short
Payment /
NonPayment
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.
13
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 March10, where TDS
has been deposited in May10.
14
Rectification Of Errors
Login with User-ID and password;
Only available to Registered TAN;
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.
15
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.
16
Rectification Of Errors
DEDUCTOR
FILES
CORRECTION
STATEMENT
RETURN IS
PROCESSED
DEFAULT IS REMOVED
17
Rectification of Errors
TYPES OF
CORRECTIONS
CHALLAN DETAILS
ASSESSING
OFFICER
BANK
TDS
STATEMENTS
DEDUCTOR
18
CORRECTIONS IN CHALLAN DETAILS
ASSESSING
OFFICERS
(TDS)
BANKS
ASSESSMENT YEAR
TAN
SECTION CODE (94C/94J etc.)
MINOR HEAD CODE (400/200)
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.
19
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;
20
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.
21
Notification dated 20/03/2013

Filing of TDS Returns
Refund for Excess

Claim to be made in
Form 26B
Electronically
through Digital
Signature (optional)
Provided there is
no outstanding
demand or credit is
not claimed by the
Assessee
22
11
Types Of Online Correction

PERSONAL INFORMATION
CORRECTION
CHALLAN CORRECTIONS
DEDUCTEE DETAILS
CORRECTIONS
TAG/REPLACEMENT OF
CHALLANS
TRANSACTION BASED
REPORTS
23
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
24
12
Landing Page
Landing page will be

displayed
25
Important Notes
Statements for FY 2007-08 onwards only will be available for Corrections.
Online Correction Matrix :
Default Summary View
Personal Information
Challan correction (
unmatched, matched) +
deductee movement
Pan correction
(annexure 1)
Interest ,
Pan correction Add challan to
Levy
(annexure 2)
statement
payment
Modify/Add
deductee
rows
Delete/Add
salary
deductee rows
Online corrections (with digital

signature, 2013-14 onwards)
Online corrections (with digital

signature, prior to 2013-14)
Online corrections (without digital

signature, 2013-14 onwards)
Online corrections (without digital

signature, prior to 2013-14)
26
13
Online Correction Request Flow
Click on Help icon for

help text for this
screen
Under Defaults select

Request for Correction
27
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
28
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.
29
Error Message appears in

case of duplicate request
raised
30
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.
31
Online Correction Request Flow - Submit Correction Request
Request number
received
Click here to track

correction request or
navigate Track Correction
Request under Defaults
menu
32
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
33
Correction Request Flow - View submitted request
Enter Request Date Search Option 2 to

view the request
34
17
Correction Request Flow - View submitted request(contd.)
Enter option 3 - View ll

to view the request
Important Notes
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
35
Correction Request Flow - Assign Sub- User (contd.)
Click here to assign the request

to another sub user under the
logged in admin
36
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
37
Token Number Details (Contd.)

Tick in Check Box for NIL
Challan or Book
Adjustment
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
Enter CIN details for a

challan used in the
statement
Tick here if you do not any Valid
PAN corresponding to above
Challan details
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
38
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)
39
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
40
20
Challan Correction
Select Challan
Correction from drop
down
41
Challan Correction
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.
42
21
Challan Correction
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
43
Challan Correction
Edited challan detail

will be highlighted
User can reset value in the

challan. This will replace edited
values with values from the
latest statement
44
22
Challan Correction
Select Newly dd Challans to
add the challan. Please refer the
E-Tutorial -Online Correction- Add
Challan to Statement
45
Challan Correction
Important Notes
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
46
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
47
Challan Correction - Unmatched
Select a row and

edit the details
48
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.

49
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.
50
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
editable for BINs.
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
editable for BINs.
10. Save the edited detail.
51
Edited row is
highlighted
Click on submit correction statement to

submit the change made in the default and
navigate to ction Summary
52
26
Online Correction - PAN Correction
53
PAN Correction
Select P N
down
54
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
Important Notes
List of Invalid PAN will be

displayed as per
statement
Full form of Abbreviation used in above Screen :

CD : Challan Detail
DD : Deductee Detail
55
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.
56
28

Status column will display
error message if PAN is invalid
or success message if details for
the deductee row are saved
Change will be automatically

saved once the action status is
updated as saved
Invalid PAN successfully

changed into Valid PAN
and saved
Edited Row can

be Viewed
Click here to submit the

correction request
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.
57
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
58
29
Select Valid P N
Tabs

editable
59

Valid PAN successfully

and saved
Changed P N column
Edited Rows can

be viewed
60
30
View Edited Rows - For Verification
61

Select Invalid P N
Tabs

62
31

editable
63


and saved

Changed P N column
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.
64
32
Select valid P N
Tabs

In case of Annexure 2, only DD Record number is required for search in CD/DD Record Filter.
65

editable
Edited Rows can

be viewed
Click here to submit the
correction request
66
33

and saved

Changed P N column

User can reset edited v alues by deleting PAN entered in Changed PAN f ield. Value of new name will also be remov ed.
67
Online Correction
68
34
Select Personal
Information from drop
down
69
Click on Check box to

Replace the Personal
Information as
mentioned while
registering with
Traces
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
After editing personal

information click on
save
Click here to reset value
in all fields as per latest
accepted statement
User can click here to
submit the correction
statement
70
35
Transaction Based Report (TBR)
71
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.
72
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
73
If any change is required
i n the details of
After confirming the
details of the
authorised person,
click on Submit
authorized person,
Admin user can update
details in profile section.
74
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
75
Request Confirmation
Request Number
will be available
here
76
38
Click on Requested Downloads under

Downloads menu to download the TBR
77
Option 1 :Select the

request number and
click on Go to view the
specific request number
78
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
79
Option 3:Click on View

ll to view all download
requests
80
40
Select the request

with status as
vailable for
downloading
Once the request is available and selected, both
HTTP Download and Download Manager button
will active
81

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.
82
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
83
If Utility is not Downloaded earlier (contd.)
Fields marked by
asterisk are
mandatory
Click on Submit
84
42
Downloading Utility (contd.)
Click here to
download the
TBR
85
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.
86
43
Click on yes in case user

does not have registered
digital signatures otherwise
no
87
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.
88
44
Generating TBR
Click here to view PDF

format of generated
Transaction Based Report
89
Transaction Based Report
PDF format of
Transaction Based
Report is generated
90
45
Online Correction - Add / Modify

Deductee Detail
91
Modify / Add Deductee Details
Select Modify/ dd
Deductee Detail from
drop down
92
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
Important Notes
Full form of abbreviations :

CD - Challan Detail
DD - Deductee Detail
SP - Short Payment
SD - Short Deduction
93
Deductee record will be

displayed as per option
selected
94
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.
95

Important Notes :
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
96
48
Modify / Add Deductee Details - All Deductee
Once the detail edited,

row will be highlighted

statement
97
Select tab ll
Deductee
Enter PAN as per

statement or CD Record
number to edit the
deductee row
row
98
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
99
Modify / Add Deductee Details - Add New Deductees
Select Challan to tag

with deductee row
100
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
101
Modify / Add Deductee Details
Select Modify/ dd
Deductee Detail from
drop down
102
51
Select tab Default

Deductee
view the details of SP an
SD

row
Important Notes
Full form of abbreviations :

CD - Challan Detail
DD - Deductee Detail
SP - Short Payment
SD - Short Deduction
103
Deductee record will be

displayed as per option
selected
104
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.
105

Important Notes :
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
106
53
Once the detail edited,


statement
107
Select tab ll
Deductee
Enter PAN as per

statement or CD Record
number to edit the
deductee row
row
108
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
109
Select Challan to tag

with deductee row
110
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
111
Online Correction
- Resolution for
Overbooked
Challan
(Movement of
deductee row)
1
112
56
Challan Correction
Select Challan
down
113
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
114
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
115
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.
116
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
117

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
Example :
Deductee Detail Record 1 : 2000
Deductee Derail Record 2 : 2000
Deductee Detail Record 3 : 1000
Click on save
Challan Detail Record 1 : 2000s

Challan Detail Record 2 : 5000
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
118
59
The impacted
challans will be
highlighted
119
Moved out deductee

in red in the original
challan.
Click here to submit

the correction
statement
120
60
Tag / Replace
Challan
121
Selecting Tag Challan Option
Under Defaults
select Tag/
Replace Challan
122
61
List of Demand for all Financial Years
Table will display

demand for all
financial years
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123
Select the row to

Tag/ Replace the
challan
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124
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
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125
Tag Challan
View the tagged

challan detail
Click on Cancel to
close the overlay
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63
Tag Challan
Enter challans
details to filter
and click on
Go
127
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
128
64
Create Request
Important Notes
Select challans to tag with a

demand, enter the amount to
be consumed from challan
click on Create
Request button
129
Confirmation Screen
Click on Yes to
create the request or
No; to go back to
the previous slide
130
65
Request Created
Request number will

be displayed
131
Selecting Replace Challan Option
Under Defaults
select Tag/
Replace Challan
132
66
Table will display

demand for all
financial years
Click on Replace
Challan
Important
Note
133
List of Tagged Challan with available balance
List of Tagged
challans with
available balance
are displayed
134
67
Create Request
select challans to tag with a

135
List of Un-tagged challan with available balance

Enter the credentials
to view the list of UnTagged Challan
136
68
Important
Notes
List of Un- Tagged

challans with
available balance
are displayed
137
select challans to tag with a

click on Create
Request button
138
69
Confirmation Screen
click on Yes to
create the request or
No; to go back to
the previous slide
139
Request Number
Request number will

be displayed
140
70
Track Request for Tag / Replace

Challan
141
Track Request for Tag Challan
Under Defaults
select Track
Request for Tag/
Replace Challan
142
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
143
Action Summary - Submit to Admin User
Click on Submit to
Admin
Above Screen will be appeared in case correction

submitted by Sub-user
144
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
145
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
146
73
Action Summary - Admin User Login
User can able to view correction changes prior to submission even if logs out and later logs in .
147
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
148
74
Action Summary - Admin User
Select the row for action
Click on View
Statement to
proceed further
149
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
150
75
Action Summary- Attach Digital Signature
Select and attach digital

Signatures
Digital Signatures are not mandatory in challan correction.
151
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
152
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 &
Challan Correction
permitted
Option to view
corrections before
submitting
Return submitted to
TDScpc
Correction available
from FY 07-08
Online Correction
request to be closed
153
Gist of Communications from TDSCPC

Date
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 201213 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
154
77
Reply to Online Communication From TDScpc
155
156
78
157
158
79
159
160
80
Chart of Password for Deductor
161
Password for the Tax Payer
162
81
e-Tutorial
Declaration of Non Filing of
Statements
163
Landing Page
Landing page will

be displayed
164
82
Declarration for Non Fil

Decla
Filiing of Statem
emeent
(cont
ntd
d.)
Click on Helpicon for help text for
this screen
Uder Stateet/ Payets

select Declara o for No- Filig of
Stateet
165

Decla
Filiing of Statem
emeent
(cont
ntd
d.)
Enter FY, Qtr, Form type 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.
166
83

Decla
Filiing of Statem
emeent
(cont
ntd
d.)
Click o IAgree to
proceed further
167
.)
Declaration for Non Filing of Statement (contd
Click o Proceed after

confirming the verification
detail or back to go on slide 4
168
84

Decla
Filiing of Statem
emeent
Declarationfor non filing

of statement has
successfully submitted ,
use will receive
confirmatione-mail for the
same.
169
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.
170
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
171
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
172
86
Request for Resolution
Under Communications, click

on Request for Resolution to
log the request
4
173
Logging Request for Resolution (contd.)
Fields marked by asterisk (*) are

mandatory. Select category under
which Resolution Request is to be
logged
5
174
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
175
Request for Resolution - Category : Form 16/16A (contd.)
From drop down , select the

issue regarding Form 16 / 16A

(*) are mandatory
7
176
88
Request for Resolution - Category : Form 16/16A
Notes will be displayed for issues

with the popular resolution
If selects Satisfied with

provided resolution, then user
will return back to the TRACES
home page.
If selects not satisfied, user can

submit request for resolution
by entering comments and
clicking on submit
8
177
Request for Resolution - Category : Conso File (contd.)

(*) are mandatory

the issue regarding
Conso file
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
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179
Request for Resolution - Category : TAN-PAN Master

(*) are mandatory

the issue regarding TANPAN Master
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180
90
Request for Resolution - Category : PAN Verification

(*) are mandatory
From drop down ,

select the issue
regarding PAN
Verification
12
181
Request for Resolution - Category : Online Correction

(*) are mandatory
From drop down , select the

issue regarding Online
Correction
13
182
91
Request for Resolution - Category : Default/ Demand (contd.)
Select resolution
request sub category
(*) are mandatory.
14
183
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
184
92
Request for Resolution - Category : Intimation Send

(*) are mandatory
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
185
Request for Resolution - Category : Form 26AS

(*) are mandatory
Either comments must be entered or

supporting documents must be
uploaded to log a Resolution Request
17
186
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
187
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
188
94
Request for Resolution Ticket logged
Acknowledgement message
after request is logged
20
189
Resolution Tracking (contd.)
Under Communication,
Select Resolution Tracking
Select either option 1 or

option 2 . Enter the
mandatory information with
asterisk mark(*)
21
190
95
Select specific ticket

number to track the
ticket
Click here to view

ticket details
22
191
Ticket has been reopened

only when tickets status
is Closed
Go to previous slide
'Provide Clarification '
button will be enabled
only if Ticket Status is
'Clarification Requested'
23
192
96
Contact Details changed
193
Thank you..!!!!
194
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.
195
98

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

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TDS DEFAULTS & PROCEDURES UNDER

TRACES FOR ONLINE CORRECTION

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

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AS PER PROVISIONS OF Ch. XVII-B

WITHIN DUE DATES

BY FILING TDS STATEMENTS

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TDS PROVISIONS: AT A GLANCE

Deemed default u/s.

Interest u/s. 201(1A)

Prosecution u/s. 276B

Late Fee under Section

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TDS PROVISIONS: AT A GLANCE

Events 203A- Failure

Penalty u/s. 272A(2)(g)

Penalty u/s. 272BB

Events Deduct Tax

Disallowance u/s. 40(a)(ia)

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Rectification of Errors: Consolidated TDS/TCS File

Consolidated file provided by Traces includes all the updates done

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e-TDS/TCS Statements Key points

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Possibility of Error while Data Handling

Some Common Errors

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Quoting Incorrect Section/Sub-section

Wrong amount of Payment

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Wrong CIN quoted for Interest Challans

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Mistake in quoting the CIN*

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Some Errors Attributable to System

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Faster Processing than that of Offline

Some corrections are not permitted

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NAME OF THE DEDUCTOR

Powers of the Assessing Officer

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Notification dated 20/03/2013

Refund for Excess

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Types Of Online Correction

Click on help icon next

For more details on

Enter userid and

Enter the text as

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Landing page will be

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Online corrections (with digital

Online corrections (with digital

Online corrections (without digital