Compliance Pack
TDS correction statement and default resolution on TRACES
What this means, checked by a CA
When TRACES shows a TDS default or a payee cannot see their credit, the fix is a correction statement. We read the justification report, pay what is really due, correct challans and PANs on TRACES, and get the demand cleared.
₹2,499
As needed, + 18% GST
- Delivered in 3 to 5 working days after TRACES access; online corrections process within about 24 hours
- Due: Within two years from the end of the tax year in which the original statement was due (Sec 397(3)(f)). Default orders are time-barred after six years, or two years from the end of the year of the correction statement, whichever is later.
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 7 items
TRACES login with admin rights
Only admin submits corrections
Latest token number or ARN
Needed to open a correction
Challan and PAN-amount details for KYC
TRACES KYC validation
Registered DSCOptional
Needed for PAN and deductee corrections
Intimation or demand notice
Shows defaults raised
Books, ledgers and challan copies
Prove actual deduction and payment
Correct PANs from deducteesOptional
Fix PAN errors
DiscussionWhat we discuss · 5 items
What does the intimation or justification report list: short payment, short deduction, interest, late fee or PAN?
Each needs a different fix
Was the tax actually paid, perhaps in a challan tagged to another quarter?
Tag challan instead of paying again
Did the payee already pay tax on this income in their return?
Sec 398(2) accountant's certificate route
Which tax year and quarter, and is the two-year window still open?
Time-barred corrections cannot be filed
Is a demand notice or penalty notice also served?
May need a written reply (ITN-10)
FormsForms we file · 6 items
Download the justification report: Default tab > Request for Justification Report Download; open in TRACES utility
Where: https://traces.tdscpc.gov.in. Due: On receiving intimation
Pay any genuine short payment, interest or late fee by challan
Interest: 1% a month for late deduction, 1.5% a month for late payment; fee ₹200 a day capped at TDS
Where: https://www.incometax.gov.in. Due: Before correction
Online correction: Default tab > Request for correction > online; add or tag challans, pay interest or fee, correct PAN, modify or add deductee rows
Where: https://traces.tdscpc.gov.in. Due: Within two years from end of tax year of due date
For changes not possible online: download conso file, correct in the utility, validate and submit the correction statement
Where: https://traces.tdscpc.gov.in. Due: Same window
Use Tag/Replace Challan for unconsumed challans and Resolution of Overbooked Challan for overbooked ones
Where: https://traces.tdscpc.gov.in. Due: As needed
Track request, check reprocessed intimation, then issue revised Form 130 or 131
Where: https://traces.tdscpc.gov.in. Due: After processing
DeliverablesWhat you get · 3 items
Correction request number and 15-digit token
When: On submission
Revised intimation with demand cleared
When: Usually within 24 hours for online corrections
Revised Form 130 or 131
When: After processing
Questions people ask
Can I correct based on the Default Summary alone?
Yes, but TRACES advises downloading the latest justification report first.
Is there a limit on adding deductee rows?
No, as long as the tagged challan has enough balance.
Do I need DSC for every correction?
DSC is needed except for challan correction, challan addition and interest payment.
How long do corrections stay open?
Two years from the end of the tax year in which the statement was due.
What does the justification report contain?
Detailed defaults to be fixed by a correction statement and payment of dues.
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