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TDS DEFAULTS & PROCEDURES UNDER TDS DEFAULTS & PROCEDURES UNDER

TRACES FOR ONLINE CORRECTION TRACES FOR ONLINE CORRECTION

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• 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

T ^{HREE D EE S YSTEM}

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T ^{HREE D EE S YSTEM}

Deduct Deposit

AS PER PROVISIONS OF Ch. XVII-B

WITHIN DUE DATES

BY FILING TDS STATEMENTS

Declare

TDS PROVISIONS: AT A GLANCE

Timeline Timeline

DEDUCT

AS PER CH.-XVII-B

DEPOSIT

BEFORE DUE DATES

DECLARE

BEFORE DUE DATES

OK?

OK?

OK?

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

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TDS PROVISIONS: AT A GLANCE

Events  Events

Failure to

Furnish Form 16/ 16A

203A- Failure to Apply for / Quote TAN

Failure to Deduct Tax

•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.

DEFAULT’s u/s. 201(1)

&

MISMATCHE’s u/s. 200A

Reasons for Default

How to Correct?

What is the Advantage?

Types of Default

TDS / TCS

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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

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)

e-TDS/TCS Statements – Key points

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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.

Types of Default

Non-marking of “A” deduction (197 Cases) Quoting Incorrect Section/Sub-section

Short deduction

Referring to an outdated Rate chart Considering wrong amount of payment Wrong amount of Payment Indicating wrong Deductee code Wrong Salary / Exemption information

Quoting Invalid PAN (FY 2010-11 onwards)

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Types of Default

Late Payment

Non-marking of “B” for 4

Quarter E-payment after 8:00 p.m.

No interest paid in case of delay

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.

Types of Default

Splitting of Challan Short

Payment / Non- Payment

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.

Combining of Challan

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Some Errors Attributable to System 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.

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.

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 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

• 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.

Rectification Of Errors Rectification Of Errors

DEFAULT IS REMOVED

RETURN IS PROCESSED DEDUCTOR

FILES CORRECTION

STATEMENT

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Rectification of Errors

TYPES OF CORRECTIONS

CHALLAN DETAILS TDS

STATEMENTS

ASSESSING

OFFICER BANK DEDUCTOR

Rectification of Errors

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.

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Powers of the Assessing Officer 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;

Rectification of Errors

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.

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Notification dated 20/03/2013 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

Types Of Online Correction Types Of Online Correction

PERSONAL INFORMATION CORRECTION

CHALLAN CORRECTIONS DEDUCTEE DETAILS CORRECTIONS

TAG/REPLACEMENT OF CHALLANS

TRANSACTION BASED REPORTS

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Login to TRACES

Click on help icon next For more details on

to each field for more any screen, click on

details Help icon

Enter userid and password

Enter TAN / PAN/ AIN

Enter the text as displayed in Verification Code

Landing Page

Landing page will be displayed

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Important Notes

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

•Online Correction Matrix :

Challan correction ( Default Summary View Personal Information unmatched, matched) +

deductee movement

Pan correctionPan correction Add challan to (annexure 1) (annexure 2) statement

Interest , Modify/Add Delete/Add Levy deductee salary 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)

Online Correction Request Flow

Click on Help icon for help text for this

screen

Under ‘Defaults’ select

‘Request for Correction’

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

click on ‘Submit

Enter : Financial Year, Quarter and Form Request’ to raise the

Type, correction category and latest request

token number

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

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

•

Statement is cancelled / Rejected for the selected search criteria.

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

Error Message appears in case of duplicate request

raised

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

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.

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Online Correction Request Flow - Submit Correction Request

Request number received

Click here to track correction request or navigate ‘ Track Correction Request ‘ under ‘ Defaults’

menu

Correction Request Flow - View submitted request

Either navigate through slide 9 or Under ‘Defaults’

Enter Request Number -Search Option 1 to

view the request

select ‘ Track Correction Request’

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Correction Request Flow - View submitted request

Enter Request Date - Search Option 2 to view the request

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 In- progress

View all request placed Click here to view

by himself and sub user the status

under him in case of description in detail

admin

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

Click here to assign the request to another sub user under the

logged in admin

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

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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

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)

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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

Challan Correction

Select ‘ Challan Correction’ from drop

down

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Challan Correction

Select a tab ‘List of Matched Important

Challans (Overbooked Notes

challans will also be shown in matched challan tab )

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.

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 by deductor with regards to the statement selected for filing correction. Amount will not be editable for BINs.

4. Other amount in the challan / BIN from the statement filed by deductor with regards to the statement selected for filing 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’

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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

Challan Correction

Select ‘Newly dd Challans’ to add the challan. Please refer the E-Tutorial -Online Correction- Add

Challan to Statement

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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

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

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Challan Correction - Unmatched

Select a row and edit the details

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.

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Challan Correction - Unmatched Challan(contd.)

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.

Challan Correction - Unmatched Challan(contd.)

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 by deductor with regards to the statement selected for filing 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 by deductor with regards to the statement selected for filing correction. Amount should not be editable for BINs.

6. Other amount in the challan / BIN from the statement filed by deductor with regards to the statement selected for filing 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.

Edit the details

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.

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Challan Correction - Unmatched Challan(contd.)

Edited row is highlighted

”

navigate to ‘ ction Summary’

Online Correction - PAN Correction

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PAN Correction

Select ‘ P N Correction’ from drop

down

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

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PAN Correction - Invalid PAN Annexure 1

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.

PAN Correction - Invalid PAN Annexure 1

‘Status’ column will display

Edited Row can be Viewed

Change will be automatically saved once the action status is updated as saved

Invalid PAN successfully changed into Valid PAN

and saved

Click here to submit the correction request

error message if PAN is invalid or success message if details for the deductee row are 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.

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PAN Correction - Valid PAN Annexure 1

Select ‘Valid P N nnexure 1 ‘ from given

Tabs User can search either

using PAN filter or CD/DD Record Number filter

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

PAN Correction - Valid PAN Annexure 1

Select ‘Valid P N nnexure 1 ‘ from given

Tabs

Once the Row selected, Changed PAN field will be

editable

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PAN Correction - Valid PAN Annexure 1

‘Status’ column will display error message if PAN is invalid or success message if details for the deductee row are saved

Valid PAN successfully changed into Valid PAN

and saved

Name as per PAN Master will be populated in ‘Name as per Changed P N’ column

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.

View Edited Rows - For Verification

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PAN Correction - Invalid PAN Annexure 2

Select ‘Invalid P N nnexure 2 ‘ from given

Tabs

User can search either using PAN filter or CD/DD Record Number filter

PAN Correction - Invalid PAN Annexure 2

Once the Row selected, Changed PAN field will be

editable

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PAN Correction - Invalid PAN Annexure 2

‘Status’ column will display error message if PAN is invalid or success message if details for the deductee row are saved

Valid PAN successfully Name as per PAN Master will

changed into Valid PAN be populated in ‘Name as per

and saved 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.

• 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.

PAN Correction - Valid PAN Annexure 2

Select ‘valid P N nnexure 2 ‘ from given

Tabs

User can search either using PAN filter or CD/DD Record Number filter

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

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PAN Correction - Valid PAN Annexure 2

Once the Row selected, Changed PAN field will be

editable

Edited Rows can be viewed

Click here to submit the correction request

PAN Correction - Valid PAN Annexure 2

Valid PAN successfully changed into Valid PAN

and saved

Name as per PAN Master will be populated in ‘Name as per Changed P N’ column

‘Status’ column will display error message if PAN is invalid or success message if details for the deductee row are 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.

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Online Correction

Personal Information

Select ‘ Personal Information’ from drop

down

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Click on Check box to

Personal Information

After editing personal information click on

save

Replace the Personal Information as mentioned while registering with Traces

Address and Communication details of the organization will be pre- populated 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

Transaction Based Report (TBR)

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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.

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’

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Downloading Report (contd.)

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.

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’

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Request Confirmation

Request Number will be available

here

Downloading Report (contd.)

Click on ‘Requested Downloads’ under

‘Downloads’ menu to download the TBR

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Downloading Report (contd.)

Option 1 :Select the request number and click on ‘Go’ to view the specific request number

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

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Downloading Report (contd.)

Option 3:Click on ‘View ll’ to view all download

requests

Downloading Report (contd.)

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

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Downloading Report (contd.)

• 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.

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

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If Utility is not Downloaded earlier (contd.)

Fields marked by asterisk are mandatory

Click on’ Submit’

Downloading Utility (contd.)

Click here to download the TBR

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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.

Generating TBR (contd.)

Click on ‘yes’ in case user does not have registered digital signatures otherwise

‘no’

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Generating TBR (contd.)

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.

Generating TBR

Click here to view PDF format of generated Transaction Based Report

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Transaction Based Report

PDF format of Transaction Based Report is generated

Online Correction - Add / Modify Deductee Detail

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Modify / Add Deductee Details

Select ‘Modify/ dd Deductee Detail’ from

drop down

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

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Modify / Add Deductee Details - Default Deductee

Deductee record will be displayed as per option

selected

Modify / Add Deductee Details - Default Deductee

Select deductee row to edit

If user select ‘ Edit Deductee Row’ Slide 28

will be displayed for Once user select the

edition deductee row all three

buttons will be active

If needed User can view details of the challan /available If user select ‘ reset’, the balance for the deductee row deductee row values will by clicking on ‘View Challan

be reset to the original details’

values

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.

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Modify / Add Deductee Details - Default Deductee

Important Notes :

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.

Edit the deductee row

After editing click on ‘Save’

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 .

Modify / Add Deductee Details - All Deductee

Once the detail edited, row will be highlighted

User can click here to submit the correction statement

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Modify / Add Deductee Details - All Deductee

Select tab ‘ ll

Deductee’ Enter PAN as per

statement or CD Record number to edit the

deductee row

Enter PAN as per statement or CD Record number or SP/SD to edit the deductee

row

Modify / Add Deductee Details - All Deductee

All the Challans in the

Select tab ‘ dd New statement with Available

Deductee’ balance will be shown

User Can add new Challan/Book Entry from OLTAS by Clicking the

buttons

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Modify / Add Deductee Details - Add New Deductees

Select Challan to tag with deductee row

Modify / Add Deductee Details - Add New Deductees

After selecting challan and click on Add Deductee Row

Important Notes

Click on ‘Save deductee’ after add / modify deductee row

Add deductee record or modify in case of modify Click on Submit deductee record will be Correction Statement pre-populated for edition

for submission

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Modify / Add Deductee Details

Select ‘Modify/ dd Deductee Detail’ from

drop down

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

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Modify / Add Deductee Details - Default Deductee

Deductee record will be displayed as per option

selected

Modify / Add Deductee Details - Default Deductee

Select deductee row to edit

If user select ‘ Edit Deductee Row’ Slide 28

will be displayed for Once user select the

edition deductee row all three

buttons will be active

If needed User can view details of the challan /available If user select ‘ reset’, the balance for the deductee row deductee row values will by clicking on ‘View Challan

be reset to the original details’

values

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.

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Modify / Add Deductee Details - Default Deductee

Important Notes :

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.

Edit the deductee row

After editing click on ‘Save’

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 .

Modify / Add Deductee Details - All Deductee

Once the detail edited, row will be highlighted

User can click here to submit the correction statement

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Modify / Add Deductee Details - All Deductee

Select tab ‘ ll

Deductee’ Enter PAN as per

statement or CD Record number to edit the

deductee row

Enter PAN as per statement or CD Record number or SP/SD to edit the deductee

row

Modify / Add Deductee Details - All Deductee

All the Challans in the

Select tab ‘ dd New statement with Available

Deductee’ balance will be shown

User Can add new Challan/Book Entry from OLTAS by Clicking the

buttons

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Modify / Add Deductee Details - Add New Deductees

Select Challan to tag with deductee row

Modify / Add Deductee Details - Add New Deductees

After selecting challan and click on Add Deductee Row

Important Notes

Click on ‘Save deductee’ after add / modify deductee row

Add deductee record or modify in case of modify Click on Submit deductee record will be Correction Statement pre-populated for edition

for submission

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Online Correction - Resolution for

Overbooked

Challan

(Movement of

deductee row)

Challan Correction

Select ‘ Challan Correction’ from drop

down

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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

Challan Correction - Overbooked Challan

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

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Challan Correction - Overbooked Challan

Select the deductee row to be moved out Click here to move out to a different challan with available balance

the selected equal to or more than the TDS deducted

deductee row 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.

Challan Correction - Overbooked Challan

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

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Challan Correction - Overbooked Challan

Important Notes

Select the challan from the list on which available balance is more or

equal to the Tax deducted amount Click on save

of the deductee row to be moved

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

Challan Correction - Overbooked Challan

The impacted challans will be highlighted

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Challan Correction - Overbooked Challan

Moved out deductee row will be highlighted in red in the original challan.

Click here to submit the correction statement

Tag / Replace Challan

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Selecting Tag Challan Option

Under ‘Defaults’

select ‘ Tag/

Replace Challan

List of Demand for all Financial Years

Table will display demand for all financial years

Copyright © 2012 Income Tax Department

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List of Demand for all Financial Years

Select the row to Tag/ Replace the

challan

Tag Challan

View the tagged After selecting the

challan details by row to Tag/

clicking the Replace the challan

hyperlink

Click on Tag Challan

Important Notes

Copyright © 2012 Income Tax Department

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Tag Challan

View the tagged challan detail

Click on ‘ Cancel’ to close the overlay

Tag Challan

Enter challans details to filter and click on ‘

Go’

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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

Create Request

Important Notes

Select challans to tag with a demand, enter the amount to be consumed from challan

click on ‘Create Request’ button

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Confirmation Screen

Click on ‘Yes’ to create the request or

‘ No; to go back to the previous slide

Request Created

Request number will be displayed

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Selecting Replace Challan Option

Under ‘Defaults’

select ‘ Tag/

Replace Challan

List of Demand for all Financial Years

Table will display demand for all financial years

Click on ‘Replace Challan’

Important Note

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List of Tagged Challan with available balance

List of Tagged challans with available balance are displayed

Create Request

select challans to tag with a demand, enter the amount to be consumed from challan

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List of Un-tagged challan with available balance

Enter the credentials to view the list of Un-

Tagged Challan

List of Un-tagged challan with available balance

Important Notes

List of Un- Tagged challans with available balance are displayed

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List of Un-tagged challan with available balance

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

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Request Number

Request number will be displayed

Track Request for Tag / Replace Challan

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Track Request for Tag Challan

Under ‘Defaults’

select ‘ Track Request for Tag/

Replace Challan

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

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Action Summary - Submit to Admin User

Click on Submit to Admin

Above Screen will be appeared in case correction

submitted by Sub-user

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

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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

Action Summary - Admin User Login

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

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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

Action Summary - Admin User

Select the row for action

Click on ‘ View Statement’ to proceed further

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Action Summary - Submit For Processing

Click on hyperlinks to 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

Action Summary- Attach Digital Signature

Select and attach digital Signatures

Digital Signatures are not mandatory in challan correction.

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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

Online Correction System At Glance Online Correction System At Glance

Login

Signature Registration

Return submitted to

TDScpc Correction available from FY 07-08 PAN Modification,

Personal Info &

Challan Correction permitted Valid & Invalid PAN

both can be changed

Booked Challan Modification not

permitted

Option to view corrections before

submitting

Online Correction request to be closed

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Gist of Communications from TDSCPC 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 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

Reply to Online Communication From

Reply to Online Communication From TDScpc TDScpc

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Reply to Online Communication From

Reply to Online Communication From TDScpc TDScpc

Reply to Online Communication From

Reply to Online Communication From TDScpc TDScpc

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Reply to Online Communication From

Reply to Online Communication From TDScpc TDScpc

Reply to Online Communication From

Reply to Online Communication From TDScpc TDScpc

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Reply to Online Communication From

Reply to Online Communication From TDScpc TDScpc

Chart of Password for

Chart of Password for Deductor Deductor

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Password for the Tax Payer

Password for the Tax Payer

e-Tutorial

Declaration of Non Filing of Statements

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Landing page will be displayed

Landing Page

Decla

Declarraattiion on ffor or Non Non –– Fil Filiing ng of of SSttaattem emeen ntt ((cco ont ntd d..))

Click on Helpicon for help text for this screen

UŶder StateŵeŶt/ PayŵeŶ

ts select Declara oŶ for NoŶ -FiliŶg of

StateŵeŶt

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Decla

Declarraattiion on ffor or Non Non –– Fil Filiing ng of of SSttaattem emeen ntt ((cco ont 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.

Decla

Declarraattiion on ffor or Non Non –– Fil Filiing ng of of SSttaattem emeen ntt ((cco ont ntd d..))

Click oŶ I Agree to

proceed further

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Declaration for Non – Filing of Statement (contd .)

Click oŶ Proceed after

confirming the verification

detail or back to go on slide 4

Decla

Declarraattiion on ffor or Non Non –– Fil Filiing ng of of SSttaattem emeen ntt

Declarationfor non filing of statement has successfully submitted ,

use will receive confirmatione-mail for the

same.

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Changes in the System of Processing 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.

Advantages of Processing 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

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Line of Action 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

Under ‘Communications’, click on ‘Request for Resolution to

log the request

4

Request for Resolution

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Logging Request for Resolution (contd.)

Fields marked by asterisk (*) are mandatory. Select category under which Resolution Request is to be

logged

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

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

From drop down , select the issue regarding Form 16 / 16A Fields marked by asterisk

(*) are mandatory

Request for Resolution - Category : Form 16/16A

Notes will be displayed for issues If selects “ Satisfied with

provided resolution”, then user will return back to the TRACES

home page.

with the popular resolution

If selects not satisfied, user can submit request for resolution

by entering comments and clicking on submit

177

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

Fields marked by asterisk (*) are mandatory

From drop down , select the issue regarding Conso file

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

Copyright © 2012 Income Tax Department

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Request for Resolution - Category : TAN-PAN Master

Fields marked by asterisk (*) are mandatory

From drop down , select the issue regarding TAN- PAN Master

Request for Resolution - Category : PAN Verification

Fields marked by asterisk (*) are mandatory

From drop down , select the issue regarding PAN Verification

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Request for Resolution - Category : Online Correction

Fields marked by asterisk (*) are mandatory

From drop down , select the issue regarding Online Correction

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

Select resolution request sub category

Fields marked by asterisk (*) are mandatory.

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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

Request for Resolution - Category : Intimation Send

Fields marked by asterisk (*) 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

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Request for Resolution - Category : Form 26AS

Fields marked by asterisk (*) are mandatory

Either comments must be entered or supporting documents must be uploaded to log a Resolution Request

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

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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