File TDS Correction Statement

This query is : Resolved

Nitish Vats (Querist)
Follow

27 June 2022 I want like to know about, how to file TDS Correction Statement against TDS demand Notice received for department.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
Follow

07 July 2024 To file a TDS (Tax Deducted at Source) Correction Statement against a TDS demand notice received from the department, follow these steps:

### . Understand the Demand Notice:
- Review the TDS demand notice carefully to understand the details of the demand raised by the Income Tax Department.

### . Identify Errors or Discrepancies:
- Determine the specific errors or discrepancies in the TDS returns that led to the demand notice. This could include incorrect TDS amounts, PAN mismatches, late filing penalties, etc.

### . Prepare for Correction Statement:
- Gather all necessary details and documents related to the TDS transactions for which corrections are required. This includes the original TDS return filed, challans, deductee details, etc.

### . Use Traces Portal or TDS Software:
- Access the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal or use authorized TDS software to file the correction statement.
- Log in to the TRACES portal using your credentials or through TDS software integrated with TRACES.

### . Initiate Correction Statement:
- Navigate to the section for correction statements on the TRACES portal or within your TDS software.
- Select the appropriate option to file a correction statement against the demand notice.

### . Fill Correction Statement Details:
- Enter the corrected details for the TDS transactions that are being corrected. This includes updating TDS amounts, correcting PANs, updating deductee details, etc.

### . Verification and Submission:
- Verify all details entered in the correction statement to ensure accuracy and alignment with the demand notice.
- Submit the correction statement electronically through the TRACES portal or TDS software.

### . Payment of Demand (if applicable):
- If the demand notice includes an amount to be paid, ensure the payment is made through the appropriate channels as specified by the department.

### Acknowledgment and Tracking:
- After submission, keep track of the acknowledgment and status of the correction statement on the TRACES portal or through your TDS software.
- The status may update as "Processed" once the department reviews and accepts the correction statement.

###. Follow-up:
- Monitor communication from the department regarding the correction statement filing.
- Respond promptly to any further queries or requests from the department related to the correction statement or demand notice.

### Important Points to Note:
- Ensure compliance with all timelines and guidelines specified by the Income Tax Department for filing correction statements and responding to demand notices.
- Seek assistance from a qualified tax professional or consultant if you encounter difficulties or have complex correction requirements.

By following these steps systematically, you can file a TDS correction statement against the TDS demand notice received from the department effectively and in compliance with regulatory requirements.