Types of TDS correction
TDS correction – Correcting regular returns in TDS
The Deductor / collector has to submit one regular TDS / TCS statement for a particular TAN, Form, Financial year and quarter. In case any additions or updates are to be made to the details of the regular statement accepted at the TIN central system, the same is done by furnishing a correction statement.
In case of deficiencies in the accepted regular TDS/TCS statement such as incorrect challan details or PAN not provided or provided incorrectly, the tax credit will not reflect in the Form 26AS of the deductees in your statement.
To make the process easy as well as correct credit in Form 26AS of the deductees, the deductor should remove the shortfalls. if any, in the accepted regular TDS/TCS statement by filing a correction statement.
To revise the TDS returns, the most important requirement is the consolidated file and the justification report. The consolidated file, also known as conso file, contains data of the deductions made in a particular quarter and the justification report has information on the errors in the filed TDS return.
Steps for correction of TDS statement
Income Tax Department can correct mistakes in statements or original returns by submitting correction statements or returns.
1, Log into the TRACES website and download your consolidated TDS file.
2, The consolidated TCS/TDS file should be imported, and then a correction statement should be prepared according to the applicable category.
3, Validate the provisional receipt number of the TDS correction statement using the File Validation Utility.
4, Provide a validated correction statement through the NSDL website or with a TIN-FC.
To make necessary TDS corrections using TRACES online and offline, follow the steps above.
Types of Correction
There are six different types of correction returns that can be made depending on the adjustments the deductor wants to make to the normal return. They are as follows:
C1: The C1 adjustment is applicable to all changes made to the deductor details, with the exception of the TAN number. If the deductor’s name or address is inaccurate, the PAN number is incorrect, or both, the C1 correction type is generated.
C2: Used to edit challan or deductor information. A C2 correction is produced when the Challan Serial Number is input erroneously. However, C1 correction is also present when C2 correction occurs.
C3: Any type of correction of the deductee’s details, challan details, or deductor details, excluding the PAN number, falls under the C3 category of correction. Let’s imagine that a very specific mention of an education cess was made in error; a C3 correction will be generated immediately. A deduction may also be made for additional components like the TDS or the reference challan.
C4: This is applicable for correction of the 4th Quarter statement of Form 24Q only. The salary details provided in the 4th quarter can also be updated or added through this correction.
C5: This modification is required if the deductee’s PAN number is wrong. If the PAN is entered improperly in a salary detail, a C5 correction is generated. Updates to the PAN can also be made using Forms 26Q, 27Q, and 27EQ.
C9: A C9 correction is generated when there are errors with challan additions or deductions. It’s the only change that has to be made online. When a new deduction is missed, a new deduction record is created, generating the C9 correction type, which generates a C9 correction type.
No, a TDS challan from a statement filed cannot be deleted.
Once a challan has been updated with statues booked, it cannot be modified.
A TDS return needs to be filed for each quarter of the fiscal year. Corrections to TDS returns are frequent. C1, C2, C3, C4, and C5 are typically updated in a single file. In order to correct the errors, the deductor should make contact with the assessing officer who made it. Revisions can be checked online three days after filing the return.
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