TDS Challan Correction

Tax deducted to the account of the Central Government, what if there is any inadvertent mistake while making payment such as choosing the wrong assessment year, choosing the wrong major head code, entering the wrong amount, or wrong PAN / TAN etc and challan is already generated? Such errors lead to no tax credit situation for the deductee. The tax department does understand that such clerical errors are unavoidable and has provided a mechanism to correct such errors.

If a taxpayer has made an unintentional mistake while paying tax, there is a way to fix the challan details which have already been generated with the inaccurate data. It is very important because, In the presence of such errors, the taxpayers will not be able to get the tax credit. Before knowing the process of rectifying all the mistakes we should first know about the types of mistakes.

Major Mistakes People Make in TDS Challan

TAN Number
Assessment Year
Major Head code
Minor Head Code
Nature of Payment
Total Amount
Name

TDS Challan Correction Offline – Physical Challan

A new challan correction mechanism for the correction of physical challans has been prescribed for payments made on or after 1st September 2011. We have provided below a list of challan corrections that can be carried out and who is authorised for such corrections:

SI No.	Fields in which corrections are to be made	Authority to correct	The time limit for correction through the bank
1	PAN/TAN	*Concerned assessing officer in case of online challans. Collecting bank / assessing officer in case of physical challan**	Within 7 days from the challan deposit date
2	Assessment Year		Within 7 days from the challan deposit date
3	Major Head code		Within 3 months from the challan deposit date
4	Minor Head code		Within 3 months from the challan deposit date
5	Nature of payment		Within 3 months from the challan deposit date
6	Total Amount		Within 7 days from the challan deposit date
7	Name	Concerned assessing officer in case of both online and physical challans	NA

*Challan correction by the bank is subject to the following conditions:

Name correction cannot be carried out by the bank
Any combination of correction of Minor Head and Assessment Year together is not allowed
PAN/TAN correction will be allowed only when the name in the challan matches the name as per the new PAN/TAN
The change of amount is permitted only when the amount so corrected is not different from the amount actually received by the bank and credited to the Government Account
Correction is allowed only once for a single challan for a particular field. For example, where the first correction request is made only for the amount, a second correction request will be allowed for correction in other fields.
There will be no partial acceptance of change correction request, i.e. either all the requested changes will be allowed, if they pass the validation, or no change will be allowed if any one of the changes fails the validation test

Procedure to Rectify the Mistake in TDS Challan

TAN Number: If the taxpayer has deposited the tax in any other TAN then he is not able to rectify the challan. There are two modes available for correction which are mentioned below:-

S.no	Tax Deposit Method	Authority to Correct
1	Online challan Deposit (e -payment)	Involved Assessing Officer (AO)
2	Physical challan deposit in the bank	Bank-If rectification request is received within 7 days from challan deposit
		After 7 days – Concerned Assessing Officer (AO)

Steps to Submit an Application to the Concerned Assessing Officer for TAN correction:

In case the challan is paid via online mode, the taxpayer can approach their respective Assessing Officer of the I-T Department.
Write an application to the concerned Assessing Officer on the taxpayer’s letterhead for correction of TAN number in the challan submitted.
Document required to attach with the application
- No objection Certificate (NOC)
- Affidavit
- Tan Number Certificate
- Copy of challan
- Id proof of the taxpayer
Then submit the application with all required documents to the concerned Assessing Officer of the I-T Department.

Steps to Request Bank for TAN Correction:

The taxpayer has to submit a request form to their respective bank.
This request must be made within 7 days of Challan’s submission.
Bank will reject any rectification request submitted by the taxpayer after the time limit specified above.
Attach a copy of the original challan.
If there is more than one challan, a separate request form has to be submitted for each challan.
If the taxpayer is other than an individual then the authorization letter of the authorized person should be enclosed with a seal.
The form for correction in the TDS challan will be provided by your respective bank.

Assessment Year, Major Head, Minor Head, Nature of Payment

If the taxpayer selects the wrong assessment year, major head, minor head, nature of payment while depositing tax, he/she will also be able to make corrections through the TRACES portal. Please follow the steps given below to make corrections in the challan.

Visit the website https://www.tdscpc.gov.in/
Login TRACES id
After logging in, click on the Statement/Payments tab and select Request for OLTAS Challan Correction, and proceed.
After proceeding you have to enter the challan details for which OLTAS correction is to be submitted.
Challan Detail must Cover –
- BSR Code
- Date of Deposit
- Challan Serial Number
- Challan Amount
Fill in the required details of the challan and proceed.
From tabs select the type of correction and make the required modification with drop-down and then click on submit button.
Now, you will gain a request number to track the status of the correction submitted.
Your correction requests will be processed in a day.

Total Amount and Name

If the total amount or name on the challan has been entered incorrectly by the bank at the time of submission of the challan, the bank can rectify the same within 7 days at the request of the taxpayer. It is only possible in the case of a physical challan submission.

TDS Challan Correction Online

The online correction of the TDS challan has to be carried out on TRACES (TDS Reconciliation Analysis and Correction Enabling System). Registering on TRACES requires a Digital Signature to request online challan correction.

You will need the following prerequisites before proceeding with the Online Tax Accounting System or OLTAS correction process.

A valid TAN, which is a 10-digit alphanumeric code the Income Tax Department issued to identify the deductors.
Register yourself on the TRACES website. It is the official portal for TDS administration. For registration, create a user ID and password. Next, share your TAN, PAN, and other details.
A TDS file is a compressed file that contains your TDS information for a specific quarter. You can access this file from the TRACES portal using your login details.

The steps for online correction on TRACES is as follows:

Login to the TRACES website with user ID, password and TAN
Under defaults, choose ‘Request for correction’
Enter the relevant Financial Year, Quarter, Form Type, and Latest Accepted Token number. The correction category should be “Online” and click on ‘Submit’
A request number will be generated
Click on ‘Go To Track Correction Request’ under Defaults again enter the Request number or Request period and click on ‘View Request’ or you can also click on ‘View All Requests’
When request status** becomes ‘Available’ click on Available / In progress status to proceed with the correction
Provide information on valid KYC
Select the type of correction category from the drop-down as ‘Challan Correction’
Make the required corrections in the selected file
Click on ‘Submit for Processing’ to submit your correction
15 digit token number will be generated and mailed to the registered e-mail ID

FAQs

How long does it take to correct TDS return?

The time taken to correct a TDS return depends on the correction type and the filing mode.

How can I correct the TDS deposited under the wrong section?

To correct the TDS deposited under the wrong section, you can follow these steps:

Go to Statements/Payments and select Request for Challan Correction.

Enter the details of the challan you want to correct and submit the request.

Practice area's of B K Goyal & Co LLP

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