tds correction

Here, in this post, we will discuss the Step by step guide for TDS correction return filing. Also, online and offline correction and some things which you need to know.

Steps for TDS correction return filing

  • Check for defaults: Check the defaults raised for the quarter after the regular statement is filed. Checking can be possible through Quarterly Statement Status after 3 working days of return filing.
  • Request and download the Justification report: To know on the actual defaults that are raised, request and download the Justification Report from TRACES. To know more about Justification Report, click here.
  • Identify the defaults: Read the Justification Report and identify the defaults that are raised for the statement.
  • Identify the type of correction to be filed: On knowing the defaults, select the type of correction to be filed. The types of correction return filing are:
    1. Online Correction: Correction filed through TRACES
    2. Offline Correction: Correction filed through Software

Online correction

Online correction is selected when the defaults are raised for short deduction, short payment etc. This mode of correction is selected basically for the addition of new challan to statement. Also, other corrections like PAN update, deduction update can be done through online mode provided the authorized person digital signature is updated in TRACES login profile.

The steps to file online correction is given in the following:

  • Request for online correction: Place the request for online correction through the Request online correction option given in TRACES login.
  • Do the required changes: Do the relevant corrections as identified in the Justification Report.
  • Submit the correction: After completing the process of correction, submit the corrections for final processing by TRACES.
  • Track the correction filed: Once you file the correction, check the status of the statement filed for any defaults.

For detailed procedure of Online correction return filing, click here

Offline correction

All types of corrections except Addition of New challan can be done through offline correction. This mode of correction is generally used when the digital signature is not registered in TRACES login for doing online correction.

The steps to file offline correction is as given in the following:

  • Request and download of Conso File: The consolidated statement or the Conso file has to be requested and then downloaded from the TRACES website
  • Read the Conso file to the software: The Conso file downloaded from TRACES has to be read to the software used for correction return filing. Here, we will be using SARAL TDS as the software for correction return filing.
  • Do the required changes: Do the relevant corrections as identified in the Justification Report.
  • Generate correction return file: Generate the output files required to be filed at TIN-FC or be uploaded to the ITD website.
  • File the return: The filing of correction return will be done similar to the filing of regular return filing.
  • Track the correction filed: Once you file the correction, check the status of the statement filed for any defaults.

If any defaults are raised, then repeat the process of correction filing.

Things you need to know

  1. You can file Correction return any number of times.
  2. There is no time limit for correction return filing
  3. If the TAN in the statement filed is wrong, then contact the concerned Assessing officer for correction in TAN
  4. Addition of new challan (C9) correction can be possible only through online correction mode

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