Types of Corrections in TDS Returns

There are 7 types of corrections namely C1, C2, C3, C4, C5, C9, Y. The following table briefly talks about each correction type:

Type Corrections in:
C1 Deductor details: All details of deductor except the TAN No. can be modified.
C2 Challan details: All details of the challan can be modified. C2 can include C1 type correction
C3 Deductee details: All details except the PAN number of the  Deductee can be modified. One may add/delete/modify a deductee in the existing challan.
C4 Salary Details: This type of correction is only applicable to correction of 4thQuarter statement of Form 24Q. All the details of the salary can be modified here except the PAN number of the employee. Here there is no provision of updating the record, a record has to be deleted and a new record has to be added with updated details.
C5 PAN: In this type of correction deductee PAN is updated. When Pan is updated for Salary record the same will also get updated in the deduction record. PAN has to be updated quarterwise i.e a separate correction return needs to be filed for each quarter where the PAN number is mentioned incorrectly.
C9 Addition of new Challans and/or Deductions: Any new addition of Challan and/or deductions forms Correction type C9. When a deduction is added with Tax amount zero then automatically a NIL challan is generated
Y TAN Number: This correction type is to modify the TAN number or when a challan is added or split by mistake
It may be noted the C1,C2, C3,C4,C5 and C9 type of correction may be made in the same single correction return whereas for Type Y a separate return needs to be filed.

Healthy Practices for Error-Free TDS Returns

Healthy practices for error – free TDS returns has been given below:

  1. Deduction/ Collection of Tax at Correct Rates.
  2. Timely Deposit of Tax Deducted at Source.
  3. Accurate Reporting of data related to tax deductions/ collections made.
  4. Submission of TDS Statements within the due dates.
  5. Verification and Issuance of TDS Certificates within time.
  6. CPC (TDS) is now sending “Intermediate Default Communication” for PAN Errors and Short Payments, which can be corrected during the interim period of a week of filing TDS Statements, before CPC (TDS) proceeds with computing Defaults for the relevant statement.
  7. User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please navigate to Defaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES).
  8. Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action.
  9. The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.
  10. Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.
  11. PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.
  12. The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.

Facilities available through Online Correction

TRACES has provided the functionality of “Online Correction” where deductor can perform correction of TDS/TCS statements online. Deductor is required to Login to TRACES, Go to ‘Default’ Menu, Click on “Request For Correction”.

Following are the various facilities available through Online Correction:

1. Rectifying Challan mismatch cases

2. Addition of new Challan to the Statement.

3. Pay 220/interest/levy.

4. Add or Delete Salary Detail.

5. Rectifying Statement Challan Information.

6. PAN Correction.

7. Correction in Personal Information.

8. Add/Modify deductee detail

9. Movement of deductee rows.

Error-Free TDS Returns

Error – free TDS returns has been given below:
  1. Deduction/ Collection of Tax at Correct Rates.
  2. Timely Deposit of Tax Deducted at Source.
  3. Accurate Reporting of data related to tax deductions/ collections made.
  4. Submission of TDS Statements within the due dates.
  5. Verification and Issuance of TDS Certificates within time.
  6. CPC (TDS) is now sending “Intermediate Default Communication” for PAN Errors and Short Payments, which can be corrected during the interim period of a week of filing TDS Statements, before CPC (TDS) proceeds with computing Defaults for the relevant statement.
  7. User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please navigate to Defaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES).
  8. Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action.
  9. The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.
  10. Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.
  11. PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.
  12. The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.

New design of PAN card

NSDL e-Governance Infrastructure Limited

PAN Services 

Circular No.: NSDL/TIN/2017/001

January 10, 2017

Subject: New design of PAN card

All TIN-FCs & PAN Centres are hereby informed that the Income Tax Department (ITD) has prescribed certain changes in the existing design of the PAN Card. Accordingly, with effect from January 1, 2017, PAN cards are being printed as per the new design specifications approved by ITD.

Specimen of the PAN card as per new design is as under:

new-pancard-design

 New features:

(i) Quick Response (QR) code having details of the PAN applicant is printed on PAN card for enabling verification of the PAN Card;

(ii) Legends have been incorporated for particulars Name, father’s, and date of birth fields.

(iii) Position of PAN & signature has been changed.

All TIN-FCs and PAN Centres are advised to take note of the above and advise applicants in the events of queries received from the applicants.

For and on behalf of

NSDL e-Governance Infrastructure limited

Mantu Prasad

Senior Manager

Date: 2017.01.10 16:02:46. IST

Introduction of CAPTCHA under Challan Status Inquiry (CSI)

TIN NSDL has now introduced CAPTCHA (as a mandatory value) which is required to be entered for downloading CSI file from TIN website. This CSI file is used for validation of quarterly e-TDS/TCS Statement(s) while generating the .FVU file through the File validation utility.

new-picture

TDSMAN software has the facility for giving its users a seamless experience of generating the .txt file, downloading the CSI file and generating the FVU file through a single click.

Changes are now being incorporated wherein the CAPTCHA code has to be entered at the time of CSI file getting downloaded.

When and How to claim TDS Refund

In case of excess deduction of tax at source, claim of refund of such excess TDS can be made by the deductor. The excess amount is refundable as per procedure laid down for refund of TDS.

The difference between the actual payment made by the deductor and the tax deducted at source or deductible, whichever is more will be treated as the excess payment made. This amount is to be first adjusted against any existing tax liability under any of the Direct Tax Acts. After meeting such liability, the balance amount is to be refunded.

When TDS refund can be claimed:

  1. When the amount you are supposed to pay as tax in a year is lower than the amount already deducted as TDS, you are eligible to claim a TDS refund.
  2. When you fall below the minimum taxable limit and yet TDS has been deducted.

How TDS refund can be claimed:

There is no specific refund process or form to claim TDS refunds. You must file your income tax returns in the normal manner. The excess of TDS over what you are supposed to pay as tax in the year will be the refund amount due, and this needs to be shown in the returns filed. The TDS refund is processed by the Income Tax department within a few months of filing returns. Usually, it takes about 6 months time.

The Income Tax department processes the refund amount along with an interest of 6% per annum in some cases. The refund is usually given in the form of a cheque. However, with effect from AY 2015-16, all refunds will be made in electronic form, directly to the bank account of the assessee, which is required to be mentioned while filing the returns.