Procedure to Apply for Correction of Tax Payment

(TDS CHALLAN Correction) What if you make an unintentional mistake while making payment, such as

selecting the incorrect assessment year, selecting the incorrect major head code,

entering the incorrect number, incorrect PAN / TAN, etc., and a challan has already

been generated? Such mistakes result in the deductee receiving no tax credit. The

tax department recognizes that such clerical errors are inevitable and has built in a

system to fix them. Let's look at the method for correcting TDS challan errors.

Correction of challans may be done either online or offline.

MODE OF TDS CHALLAN CORRECTION:

OLTAS CHALLAN

CORRECTION

JURISDICTIONALASSESSING

OFFICER

TRACE PORTALBANK

Due to the errors TDS/TCS demand may arises to deductor which needs to get

rectified as soon as possible

Type of Correction To

be made

Time limit from Challan Correction

Correction authority within timeline

Correction authority after the expiry of

timeline

TAN to TAN correction

Within 7 Days

Bank Jurisdictional Assessing Officer

PAN to TAN correction

Within 7 Days Bank Jurisdictional Assessing Officer

Major/Minor

Head code

Within 3 months

Bank Jurisdictional Assessing Officer

Nature of Payment

Within 3 months

Bank Jurisdictional Assessing Officer

Total amount Within 7 Days Bank Jurisdictional Assessing Officer

The bank's challan correction is subject to the following conditions:

• The bank will not be able to correct your name.

• No combination of Minor Head and Assessment Year corrections is permitted.

• Only when the name on the challan matches the name on the new PAN/TAN can

PAN/TAN correction be permitted.

• A change of amount is allowed only if the corrected amount is the same as the

amount earned by the bank and credited to the Government Account.

• A single challan for a specific area may only be corrected once. For example, if the

first correction request is just for a change in the number, a second correction

request would be allowed for changes in other fields.

• There would be no partial approval of a change correction request, which means

that either all of the requested changes will be accepted if they pass validation, or

none of the changes will be allowed if any of them fails validation.

The procedure for approaching a bank for challan correction is as

follows:

1. The taxpayer must apply the correction request form (in duplicate) to the bank

branch in question.

2. A copy of the original challan counterfoil must be attached by the taxpayer.

3. If challans in Forms 280, 282, or 283 need to be corrected, a copy of the PAN card

must be attached.

4. The initial authorization with seal of the non-individual taxpayer must be added to

the request form in the case of non-individual taxpayers.

5. For each challan, a different request form must be sent.

Approaching the Assessing Officer for challan correction is done in the

following manner:

After the time limit for approaching the bank for challan correction has passed, a taxpayer

can make a request for correction to the concerned assessing officer, who is allowed

under the OLTAS application to make such corrections in challan data in bona fide cases,

allowing credit of taxes paid to the concerned taxpayer. Other procedures are similar to

those described above for approaching a bank.

Online Correction of TDS Challan

TDS challan correction must be done online using ‘TRACES' (TDS Reconciliation Analysis and

Correction Enabling System). To register on TRACES and submit an online challan correction, you

must have a digital signature.

STEPS FOR ONLINE CORRECTION OF TDS:

• Login to TRACES website with user ID, password and TAN

• Select ‘Request for correction' from the drop-down menu.

• Enter the appropriate financial year, quarter, form type (if applicable), and the

latest accepted token number. Correct the category to "Online" and then press

"Submit."

• You will be assigned a request number.

• Under Defaults, click on ‘Go To Monitor Correction Request' and enter the

Request number or Request period, then click on ‘View Request' or ‘View All

Requests.'

• To continue with the correction, click on Available / In Progress status when the

request status becomes ‘Available.'

• Provide valid KYC details.

• Choose ‘Challan Correction' from the drop-down menu for the form of correction

group.

• Make the necessary changes to the selected file.

• To apply your correction, click ‘Submit for Processing.'

• A 15-digit token number will be produced and mailed to the e-mail address

provided during registration.