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Step-by-Step Guide: TDS Correction in Challan

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Financial Analyst

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Step-by-Step Process for TDS Correction in Challan

Errors in TDS challans, such as wrong PAN, TAN, or deposited amount, are common but must be corrected to avoid interest and penalties. Here’s a complete guide on correcting TDS challan mistakes.

1. Identify the Error

Common mistakes in TDS challans include:

  • Wrong TAN or PAN
  • Incorrect TDS amount
  • Wrong section code
  • Wrong quarter or financial year

Identifying the exact error is critical before initiating correction.

2. Gather Required Details

You will need:

  • Challan Identification Number (CIN)
  • Deductor TAN and PAN
  • Deductee PAN
  • Financial year and quarter of TDS deposit
  • Original challan deposit details

3. Login to the TIN/NSDL Portal

  1. Visit the TIN NSDL website.
  2. Login using your TAN and password.
  3. Navigate to ‘Correction in TDS Challan’ section.

4. Submit Challan Correction

  • Select the challan to be corrected using CIN, TAN, PAN, and quarter.
  • Enter the correct details for PAN, TAN, section code, or deposited amount.
  • Ensure all corrections are accurate and complete.

5. Generate Correction Acknowledgment

  • After submission, the portal generates a Correction Acknowledgment Receipt.
  • Download and save this receipt for records.
  • This acknowledgment serves as proof of correction for TDS compliance.

6. File Revised TDS Return (If Required)

  • If the correction affects the TDS return, prepare a revised TDS return using Form 24Q or 26Q.
  • Upload the revised file on the NSDL TDS e-filing portal.
  • Keep the acknowledgment of both challan correction and revised TDS return for audit purposes.

7. Important Tips

  • Always verify TDS deposits and PAN details before filing to minimize errors.
  • Maintain digital and physical copies of all corrections and acknowledgments.
  • Corrections should be done as soon as the error is identified to avoid interest or penalties under Sections 201 and 234E.

Conclusion

Correcting mistakes in TDS challans is straightforward if you follow the proper process. Accurate correction ensures compliance, avoids penalties, and maintains smooth TDS reporting for both deductors and deductees.

Disclaimer: This blog is intended for general informational purposes only. It does not replace professional tax advice. For personalized guidance, consult a qualified tax consultant.

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