TDS: Significant change in processing of Quarterly TDS Statements

Dear Deductor,

Centralized Processing Cell (TDS), in its constant endeavor to improve services, is glad to update you with a significant change in processing of Quarterly TDS Statements. This change has been initiated in view of feedbacks received from deductors, to avoid defaults that may arise due to inadvertent data entry errors.

The central point in the new process is identifying errors in challan/ PANs and facilitating their corrections before CPC (TDS) computes defaults in TDS statements. Following are the salient features of the new process:

What is new ?

·         Step 1: CPC (TDS) will first process Original TDS Statements till the stage of 26AS generation for deductees reported.

·         Step 2: Short Payments and PAN Errors will be identified in the preliminary check of the Original statements.

·         Step 3: The statements will be placed "On Hold" for further processing and an opportunity will be provided to correct potential defaults of Short Payment and PAN Error.

·         When the statement is placed on Hold, CPC (TDS) will intimate you through following means :

o    e-mail at the Registered e-mail address at TRACES

o    SMS at Registered Mobile Number with TRACES

o    Message will be delivered to the Deductor's Inbox in TRACES

·         The above correction needs to be carried out by using Online Correction feature at TRACES within 7 days of above communication.

It is, therefore, advised that the deductors may ascertain status of the TDS statements within 7 days of filing with TIN Facilitation Centre.

What are the advantages:

·         You would have preliminary information of potential Short Payments and PAN Errors, before the Original Statement is completely processed for Defaults and Intimations are generated.

·         Correction of above defaults using Online Correction can be submitted before final processing of statements.

·         Above action will facilitate avoidance of multiple Correction Statement filing later, after the defaults are identified CPC (TDS) and Intimations have been sent.

What actions to be taken :

·         Please take note of the Intermediate communication from CPC (TDS) and submit Online Correction for potential defaults in TDS statement within the stipulated time frame.

·         Only "Online Correction" facility can be used for correction of above Short Payments and PANs

To avail the facility, you are requested to Login to TRACES and 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.

Please note that Digital Signature will be required to avail the benefit of complete correction features, including PAN Corrections. In view of Q3 filing due date approaching fast, you are requested to procure Digital Signature Certificate at the earliest.

·         PAN Verification facility on TRACES can be used for verifying the deductees. You are requested to navigate to Dashboard to locate PAN Verification in the Quick Links menu.

·         You can make use of the "Consolidated TAN - PAN File" that includes all the valid PANs attached with the respective TANs. To avail the facility, please navigate to Dashboard to locate Consolidated TAN - PAN File.

·         The action requires to be completed within 7 days of Intermediate communication from CPC (TDS).

It is hoped that the deductors will avail of the time window to correct errors, if any. CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

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