: For Finance Professionals & Students

Significant Changes in processing of Quarterly TDS Statements

Posted by  

It is glad to update you with a significant changes in processing of Quarterly TDS Statements by Centralized Processing Cell (TDS) for providing its better services.These changes was done to avoid defaults that may be arise due to inadvertent data entry errors.on the basis of feedbacks received from many deductors to avoid defaults.

The Important point in the new process to identifying errors in challans,PANs and facilitating their corrections before CPC (TDS) computes defaults in TDS statements.

lets us see what is new ?

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

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

3. 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.

4. The above correction needs to be carried out by using Online Correction feature at TRACES within 7 days of above communication.
It is, advisable to the deductors that they may ascertain status of the TDS statements within 7 days of filing with TIN Facilitation Centre.

Now see what are the advantages ?

Before the Original Statement completely processed for Defaults and Intimations generated.You have preliminary information of potential Short Payments and PAN Errors,

The same will be corrected using Online Correction facility before submitting 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 first to TRACES and navigate to Defaults tab to locate Request for Correction from the drop-down menu.
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 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.
This action requires to take minimum 7 days of Intermediate communication from CPC (TDS).

Leave a Reply

Your email address will not be published. Required fields are marked *

© 2014, all rights reserved at