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TDS Challan Correction Procedure – Offline , Online in Traces

Updated on :  

08 min read.

Now that you have paid tax deducted to the account of Central Government, what if there is any inadvertent mistake while making payment such as choosing wrong assessment year, choosing a wrong major head code, entering the wrong amount, wrong PAN / TAN etc and challan is already generated? Such errors lead to no tax credit situation for the deductee. The tax department does understand that such clerical errors are unavoidable and has provided for a mechanism to correct such errors. Let us understand the procedure to correct errors in TDS challan. Challan correction can be carried out either online or offline.

TDS Challan correction offline – Physical challan

A new challan correction mechanism for correction of physical challans has been prescribed for payments made on or after 1st September 2011.We have provided below list of challan corrections that can be carried out and who is authorised for such correction:  

SI No.Fields in which correction to be madeAuthority to correctTime limit for correction through bank
1PAN/TANConcerned assessing officer in case of online challans. Collecting bank* / assessing officer in case of physical challanWithin 7 days from challan deposit date
2Assessment YearWithin 7 days from challan deposit date
3Major Head codeWithin 3 months from challan deposit date
4Minor Head codeWithin 3 months from challan deposit date
5Nature of paymentWithin 3 months from challan deposit date
6Total AmountWithin 7 days from challan deposit date
7NameConcerned assessing officer in case of both online and physical challansNA

*Challan correction by the bank is subject to following conditions:

  • Name correction cannot be carried out by the bank
  • Any combination of correction of Minor Head and Assessment Year together is not allowed
  • PAN/TAN correction will be allowed only when name in the challan matches with the name as per the new PAN/TAN
  • The change of amount is permitted only when the amount so corrected is not different from the amount actually received by the bank and credited to Government Account
  • Correction is allowed only once for a single challan for a particular field. For eg: Where 1st correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields.
  • There will be no partial acceptance of change correction request, i.e. either all the requested changes will be allowed, if they pass the validation, or no change will be allowed, if any one of the changes fails the validation test

Procedure to approach bank for challan correction

  • The taxpayer has to submit the request form for correction (in duplicate) to the concerned bank branch
  • The taxpayer has to attach copy of original challan counterfoil
  • In case of correction desired for challans in Form 280, 282, 283, the copy of PAN card is required to be attached.
  • In case of non-individual taxpayers, the original authorization with seal of the non-individual taxpayer is required to be attached with the request form.
  • A separate request form is to be submitted for each challan

Procedure to approach Assessing Officer for challan correction

After the time limit to approach the bank for challan correction expires, a taxpayer can make a request for correction to the concerned assessing officer, who is authorized under the OLTAS application to make such correction in challan data in bonafide cases, to enable credit of the taxes paid, to the concerned taxpayer. Other steps are similar to approaching a bank as above.

Format of application for challan correction

TDS Challan correction online

Online correction of TDS challan has to be carried out on ‘TRACES’ (TDS Reconciliation Analysis and Correction Enabling System). Digital Signature is mandatory to register on TRACES for requesting online challan correction.

Steps for online correction on TRACES is as follows:

  • Login to TRACES website with user ID, password and TAN
  • Under defaults, choose ‘Request for correction’
  • Enter relevant Financial Year, Quarter, Form Type whether, Latest Accepted Token number. Correction category should be “Online” and click on ‘Submit’
  • A request number will be generated
  • Click on ‘Go To Track Correction Request’ under Defaults again and enter Request number or Request period and click on ‘View Request’ or you can also click on ‘View All Requests’
  • When request status** becomes ‘Available’ click on Available / In progress status to proceed with the correction
  • Provide information of valid KYC
  • Select the type of correction category from the drop down as ‘Challan Correction’
  • Make the required corrections in the selected file
  • Click on ‘Submit for Processing’ to submit your correction
  • 15 digits token number will be generated and mailed to registered e-mail ID

** Status of correction request can be any of the following:

RequestedWhen the user submits a request for correction
InitiatedRequest is being processed by TDS CPC
AvailableRequest for correction is accepted and the statement is made available for correction. The user can start correction on the statement. Clicking on the hyperlink will take the user to validation screen. Once user clicks on request with ‘Available’ status, status of request/statement will change to ‘In Progress’
FailedRequest cannot be made available due to a technical error. User can re-submit request for same details
In ProgressUser is working on a statement. Clicking on the hyperlink will take user to validation screen
Submitted to Admin User:Sub-user / Admin User has submitted correction statement to Admin User
Submitted to ITDAdmin User has submitted correction statement to ITD for processing
ProcessedStatement has been processed by TDS CPC (either for Form 26AS or for defaults)
RejectedStatement has been rejected by TDS CPC after processing. Rejection reasons will be displayed in ‘Remarks’ column

Frequently Asked Questions

Can I delete a TDS challan?

You cannot delete a TDS challan from a statement which you have filed because that challan stands consumed and you cannot do anything to a challan which has been consumed.

Can I rectify the details of a TDS challan if the status of the same on the website is displayed as ‘Booked’?

Once the challan is updated with status ‘Booked’ modifications or rectifications to the details of the said challan are not allowed. As a result any correction TDS/TCS statement with modifications/rectifications on a booked challan will get rejected at the TIN central system.

How can I change my TDS challan?

The taxpayer needs to apply for correction to the bank within 7 days of the date of deposit of challan. In this case, the taxpayer can send a challan correction application form to their respective bank.

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