Online Correction of TDS/TCS Statement at TRACES

If the deductor has filed a TDS return, but some mistakes occur while furnishing the TDS statement, such as wrongly mentioned PAN, short deduction of TDS amount, excess utilisation of any challan, etc. In that case, the assessee has to do online corrections in the TDS statement on “TRACES” (TDS Reconciliation Analysis and Correction Enabling System).

Steps for Online Corrections in TDS/TCS Statement

Step 1: Log in to the TRACES website

Step 2: Go to “Request for correction” under “Defaults” by entering the relevant Quarter, Financial Year, Form Type, and Latest Accepted Token number. The correction category should be “Online”, and the request number will be generated

Step 3: The request will be available under “Track Correction Request” when the request status becomes “Available” Click on Available / In progress status to proceed with the correction and provide information of valid KYC

Step 4: Select the type of correction category from the drop-down as “Challan Correction”

Step 5: Make the required corrections in the selected file

Step 6: Click “Submit for Processing” to submit your correction (only available to an admin user). Alternatively, the request can be submitted via a digital signature by an Authorised person.

Step 7: A 15-digit token number will be generated and mailed to the registered e-mail ID

Online Corrections’ List of TDS/TCS

All types of corrections, such as “Personal information, Deductee details and Challan correction,” can be made using the online correction functionality available after the expiry of two years from the end of the financial year in which the original statement was filed.

For quarters 1, 2 and 3, corrections can be made within two subsequent financial years. For Q4, corrections can be filed within two subsequent financial years plus one additional financial year, as the filing due date for Q4 falls in a subsequent financial year.

Type of Error or Defaults	Correction Type	DSC Required
If the challan is unmatched	Challan correction	No
Add a new challan	Add a challan to the statement	No
To clear the interest and late fee demand payment	Pay 220, interest, levy, late filing	No
To move the deductee row	Request for overbooked challan (move the deductee row from the challan)	No
To update PAN	PAN correction	Yes
To add/modify the deductee row	Add/Modify deductee details	Yes
To update personal details	Personal information	Yes
To modify salary details	Add or delete salary details	Yes

Note: For the paper return, online correction cannot be done

Status of Online Correction Requests

• Requested: When the user submits a request for correction.

• Initiated: The request is being processed by TDS CPC

• Available: Request for correction is accepted, and the statement is made available for correction. The user can start correcting the statement. Clicking on the hyperlink will take the user to the validation screen. Once the user clicks on the request with ‘Available’ status, the status of the request/statement will change to ‘In Progress

• Failed: Request cannot be made available due to a technical error. The user can resubmit the request for the same details

• In Progress: The user is working on a statement. Clicking on the hyperlink will take the user to the validation screen

• Submitted to Admin User: Sub-user / Admin User has submitted a correction statement to Admin User

• Submitted to ITD: Admin User has submitted a correction statement to ITD for processing

• Processed: Statement has been processed by TDS CPC (either for Form 26AS or for defaults)

• Rejected: Statement has been rejected by TDS CPC after processing. Rejection reasons will be displayed in the ‘Remarks’ column.

---