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Home » Revised TDS Return: Correcting Tax Deducted at Source

Revised TDS Return: Correcting Tax Deducted at Source

Revised TDS Return

TDS Return, as we know, is a crucial statement that outlines the tax deducted and deposited by the deductor to the government. However, sometimes errors or changes in details may occur, requiring the need for a Revised TDS Return.

Why File a Revised TDS Return?

A Revised TDS Return becomes necessary in various situations, such as:

  • Incorrect or incomplete PAN details of the deductee.
  • Errors in challan details like the serial number, BSR code, or deposit date.
  • Inaccuracies in deduction details, including income amount, section of deduction, or tax rate.
  • Additions or deletions of deductees from the original return.
  • Changes in deductor’s information like name, address, or TAN.

Common Mistakes in TDS Return and How to Avoid Them

Filing a TDS Return accurately is crucial to ensure a smooth tax process for both the deductor and the deductee. Let’s explore some common mistakes that may lead to the need for correction or revision of the TDS Return:

  1. Incorrect Details: Quoting incorrect TAN, PAN, CIN, or section details can cause discrepancies in tax deductions.
  2. Incomplete Personal Information: Missing or incomplete personal information of the deductor or deductee can lead to inaccuracies.
  3. Unreported Income or Deductions: Not disclosing all sources of income or deductions may result in underreporting of TDS.
  4. Failure to Reconcile with Form 26AS: Not reconciling TDS with Form 26AS may lead to discrepancies in tax credit.
  5. Errors in Income and Tax Details: Incorrectly reporting the amount of income, tax deducted, or tax deposited can impact tax calculations.
  6. Neglecting 197 Certificates: Not verifying the validity, threshold, and rate of the 197 certificates (for lower or nil TDS deduction) can lead to errors.
  7. Late Filing of TDS Return: Not adhering to the due dates for filing TDS Return can result in penalties and interest charges.

Avoiding the Mistakes

To prevent these errors, deductors should take the following precautions:

  • Thorough Verification: Double-check all details, including TAN, PAN, and section details, for accuracy and validity.
  • Complete Information: Ensure all personal information of the deductor and deductee is provided accurately.
  • Comprehensive Reporting: Disclose all sources of income and eligible deductions to avoid underreporting.
  • Reconciliation: Regularly reconcile TDS data with Form 26AS to maintain consistency.
  • Accurate Income and Tax Details: Report income and tax details meticulously to prevent miscalculations.
  • Stay Informed: Keep track of 197 certificates and adhere to their guidelines for correct TDS deduction.
  • Timely Filing: Submit the TDS Return within the due dates to avoid penalties.

By taking these steps, deductors can ensure that their TDS Returns are error-free and compliant with tax regulations, streamlining the overall tax process.

Due Dates for Filing Revised TDS Return

The due dates for filing the Revised TDS Return remain the same as those for the original TDS Return. The deadlines differ based on the quarter and the type of deductor. Here’s a quick reference table for the due dates:

Quarter

Due Date for Government Deductors

Due Date for Non-Government Deductors

Q1 (April-June)

31st July

31st July

Q2 (July-September)

31st October

31st October

Q3 (Oct-Dec)

31st January

31st January

Q4 (Jan-March)

31st May

31st May

How to Correct TDS Returns: Step-by-Step Guide

If you discover any errors in your TDS return, it’s essential to correct them promptly to avoid any potential issues. Follow these steps to correct TDS returns:

  1. Login to TRACES Website:Access the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website.
  2. Navigate to “Request for Correction”: Go to the “Defaults” tab and select “Request for Correction.” Enter the relevant details, including the Quarter, Financial Year, Form Type, and Latest Accepted Token number.
  3. Select “Online” Correction Category: Choose the “Online” correction category to initiate the correction process.
  4. Generate Request Number: Upon selecting the correction category, a unique request number will be generated.
  5. Furnish Corrected Records: Provide only the records that require corrections in the TDS return.
  6. Prepare the Correction Statement: Use a software or utility to import the consolidated TCS/TDS file. Prepare the correction statement according to the applicable category.
  7. Submit the Correction Statement: Upload the corrected file on the e-filing portal or at a TIN-FC (TIN Facilitation Center). You can also use a software or utility to prepare and validate the correction statement. You can then upload the corrected file on the e-filing portal or at a TIN-FC (TIN Facilitation Center).

Important Note: The due dates for filing Revised TDS Return remain the same as the original TDS Return. The due dates vary based on the type of deductor and the relevant quarter for which the return is filed.

Ways to Check TDS Correction Return Status

After filing a TDS correction return, it’s essential to keep track of its status to ensure that the corrections are processed correctly. Here are various methods to check the status of your TDS correction return:

  1. Check Email Communication: Look for an acknowledgement and refund processing email sent by the Income Tax Department to your registered email address.
  2. Check Income Tax Website: Use your PAN card number to check the TDS refund status on the official Income Tax website.
  3. Call CPC Bangalore: Dial the toll-free number – 1800-4250-0025 to inquire about the status of your TDS correction return from the Centralized Processing Centre (CPC) in Bangalore.
  4. Using TRACES Website – Track Correction Request:
  • Login to the TRACES website.
  • Access the “Request for Correction” option available under the “Defaults” tab.
  • Enter relevant details such as Quarter, Financial Year, Form Type, and Latest Accepted Token number.
  • Choose “Online” as the correction category to generate a unique request number.
  • Click on “Track Correction Request” under “Defaults” to view the status of your request.
  1. Using TRACES Website – Statement Status:
  • Login to the TRACES website.
  • Navigate to the “Statement Status” section located within the “Statements / Payments” menu.
  • Search using details of the TDS Statement or the Token Number of the filed TDS Statement.
  • You can view the status of your statement, such as Processed for 26AS, Pending for Processing, Processed with Default, Processed without Default, or Rejected.

Online TDS Correction Processing Time

According to the information provided, online TDS correction requests are typically processed within 24 hours by the Income Tax Department. Please be aware that taxpayers must initiate the correction request with their bank within 7 days of depositing the challan.

However, it’s essential to understand that the actual processing time for TDS correction may vary depending on certain factors:

  • Type of Correction: The processing time may differ based on the type of correction required. Some corrections may be simpler and processed more quickly, while complex corrections may take longer.
  • Volume of Requests: The number of correction requests received by the Income Tax Department can impact the processing time. During peak periods, when there is a higher volume of requests, processing times may be slightly delayed.
  • Verification Process: The Income Tax Department needs to verify the accuracy and validity of the correction requests. Depending on the extent of verification required, processing times may vary.
  • Technical Issues: Occasionally, technical issues or system maintenance may temporarily affect the processing time.

Conclusion: Filing a Revised TDS Return is crucial to rectify errors in tax deductions. This comprehensive guide highlights common mistakes to avoid, due dates for filing, and step-by-step instructions for correction. Stay compliant with tax regulations and ensure error-free returns for a seamless tax process. Check the status of your correction request easily and keep your tax deductions accurate.

What is TDS return and who should file it?

TDS return, short for Tax Deducted at Source return, is a statement that contains details of tax deducted and paid to the government by the deductor. The deductor is responsible for filing the TDS return regularly with the National Securities Depository Limited (NSDL). The TDS return must be filed by various categories of deductors, including organizations, governmental revenue and tax collectors, individuals whose accounts are audited under the Income Tax Act of 1961, and other taxpayers who had TDS deducted.

What is a revised TDS return and when should it be filed?

A revised TDS return is a correction statement filed to rectify errors or update information in the original TDS return. It is necessary when there are mistakes, such as incorrect PAN numbers, unexpected TDS amounts deducted, or inaccurate challan details. A deductor should file a revised TDS return promptly whenever such errors are identified.

How to file a revised TDS return online?

Filing a revised TDS return online involves several steps. Firstly, the deductor needs to download the consolidated TDS file from the TRACES website after logging in. Next, they should import the file and prepare the correction statement, including only the records that require corrections. Provisional receipt numbers of regular and previous correction statements should be filled in. The correction statement must be validated using the File Validation Utility (FVU). Finally, the validated correction statement can be furnished with a TIN-FC or directly through the NSDL website.

How to check the status of an online correction request?

To check the status of an online correction request, the deductor can navigate to the ‘Default’ section in the main menu of the TRACES website and select ‘Track Correction Request.’ This will display the details of the request, such as the request number, date, current status, and any remarks provided. Additionally, the deductor can download the justification report for the request if needed.

How to rectify the mismatch in challan details?

Correcting a mismatch in challan details can be done through the online correction facility on the TRACES website. The deductor should choose the ‘Rectifying Statement Challan Information’ option under the ‘Type of Correction.’ They can then proceed to modify the challan details, including the BSR code, challan serial number, challan date, and challan amount. Furthermore, they have the option to add or delete a challan from the statement as required.

How to correct the PAN of deductor or deductee?

Correcting the PAN of a deductor or deductee can be accomplished using the online correction facility on the TRACES website. The deductor should select the ‘PAN Correction’ option under the ‘Type of Correction’ and proceed to update the PAN as per the latest information available. They also have the flexibility to add or delete a deductee from the statement, as necessary.

How to download the consolidated file and justification report from the TRACES website?

To download the consolidated file and justification report from the TRACES website, the deductor should log in with their user ID, password, and TAN. Afterward, they can go to the ‘Statements/Payments’ tab and click on ‘Requested Downloads.’ Here, they can select the appropriate financial year, quarter, form type, and request type, such as ‘Consolidated TDS File’ or ‘Justification Report.’ Upon clicking ‘Go,’ a list of available files for download will be displayed. By clicking on the download icon under ‘Download File’ and entering the request number as the password, the zip file containing the files can be accessed.

How to validate the correction statement through File Validation Utility (FVU)?

File Validation Utility (FVU) is a tool provided by NSDL to validate TDS/TCS statements before uploading them to the TIN website. To validate the correction statement using FVU, the deductor should download the latest version from the NSDL website and install it on their computer. Afterward, they can run FVU and select the ‘e-TDS/TCS Return’ option. They need to browse the correction statement file (.txt) they have prepared and click on ‘Validate.’ If there are no errors, the tool will display a message stating ‘File Validation Successful,’ and a validated correction statement with the extension .fvu will be generated in the same folder as the original correction statement file.


How to correct the TDS amount or rate in the statement?

To correct the TDS amount or rate in the statement, you can utilize the online correction facility available on the TRACES website. By choosing the option ‘Add/Modify deductee detail’ under ‘Type of Correction,’ you can make the necessary modifications to the TDS amount or rate based on the accurate calculation. Additionally, you have the flexibility to add or delete a deductee from the statement as required.

How to correct the financial year, quarter, form type, or regular token number in the statement?

Unfortunately, the online correction facility on the TRACES website does not allow you to correct the financial year, quarter, form type, or regular token number in the statement. In such cases, you need to file a paper correction statement with a TIN-FC or directly through the NSDL website (www.tin-nsdl.com). Along with mentioning the correct details in the paper correction statement, it is crucial to attach a letter stating the reason for the correction.

How to check the status of an online correction request?

To check the status of your online correction request, you can navigate to the ‘Default’ section in the main menu of the TRACES website and select ‘Track Correction Request.’ Upon doing so, you will be presented with the details of your request, including the request number, date, current status, and any remarks provided. Furthermore, you have the option to download the justification report for your request, if needed.

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