General View Regarding e-TDS/e-TCS Return

Tuesday, November 23, 2010 | comments

Friends,  It is well known by everyone that the e-TDS/e-TCS return are being submitting electronically since Financial Year 2005-06, Now, Income Tax Department has taken serious view regarding submitted e-TDS/e-TCS return and issued letters to deductors to rectify errors.  Some time back, after releasing new structure there were complications in correction returns.  But now after releasing New RPU 2.3 by NSDL, all possible corrections can be done.   Keeping in view these things, some clarity is given below as  FAQ.

What is a correction TDS/TCS statement?
Deductor/collector is required to furnish one regular TDS/TCS statement for a particular TAN, Form, Financial year and quarter. In case there are any additions/updations to be made to the details of the regular statement accepted at the TIN central system, the same should be done by furnishing a correction statement.
Why should I furnish a correction statement?
The payment information provided in the regular TDS/TCS statement, is verified with the corresponding details provided by the bank where tax was deposited. On successful verification credit of tax deducted/collected by you is reflected in the annual tax statement (Form 26AS) of the deductees/transacting parties where PAN of deductee / transacting party is present.

In case of deficiencies in the accepted regular TDS/TCS statement such as incorrect challan details or PAN not provided or provided incorrectly, the tax credit will not reflect in the Form 26AS of the deductees in your statement.
To facilitate correct credit in Form 26AS of the deductees you are required to remove deficiencies, if any, in the accepted regular TDS/TCS statement by filing a correction statement.
What are the different types of corrections that I can make?
The following are the various types of corrections that you can make to an accepted regular TDS/TCS statement:
  1. Update deductor details such as Name, Address of Deductor. This type of correction is known as C1
  2. Update challan details such as challan serial no., BSR code, challan tender date, challan amounts etc. This type of correction is known as C2.
  3. Update/delete /add deductee details. This type of correction is known as C3.
  4. Add / delete salary detail records. This type of correction is known as C4.
  5. Update PAN of the deductee or employee in deductee/salary details. This type of correction is known as C5.
  6. Add a new challan and underlying deductees. This type of correction is known as C9.
  7. Cancel accepted statement. This type of correction is known as Y. Regular TDS /TCS statement can be cancelled only if the TAN of the deductor is to be corrected. After the regular statement with incorrect TAN is cancelled a regular TDS / TCS statement with the correct TAN should be filed.
Can I update / add deductee and challan details in the same correction statement? Do I need to file separate correction statements for updating a PAN as well as adding a challan and its underlying deductees?
Yes. There is no need to file separate statements for different types of corrections. In case you need to update or add different deductees / challans in the same statement, it can be done in a single correction file.

Depending on the type of correction a single correction file may contain multiple correction statements. A correction file containing more than one correction statement is called “multiple batch correction statement”.
What is the procedure for submission of multiple batch correction statement?
On successful validation of the correction file through the File Validation Utility (FVU) the following will be created:
  1. .fvu file
  2. Statement statistics report (one each for each type of correction)
Copy the .fvu file on a CD and submit the same to the TIN-FC along with print out of the statement statistics reports and Form 27A.
Can I file the correction e-TDS/TCS statement with any TIN-FC?
You can file the corrected e-TDS/TCS return at any TIN-FC.
Do I have to pay upload fee for filing correction e-TDS/TCS return?
Yes. Upload fee is payable for each and every e-TDS/TCS return accepted by the TIN-FC, irrespective of whether it is a correction e-TDS/TCS statement or an original e-TDS/TCS statement. Upload fees applicable for correction statement is as per table below:
No. of deductee records in e-TDS/TCS returnUpload charges (inclusive of service tax)
Returns having up to 100 recordsRs.30
Returns having 101 to 1000 recordsRs.182
Returns having more than 1000 recordsRs.606

Do I have to pay upload fees for cancellation statement (Y)?
Yes. Upload fees are applicable for cancellation (Y) statements. Charges would be as per regular statement being cancelled.
Will the TIN-FC give any acknowledgment/receipt after acceptance of corrected e-TDS/TCS return?
Yes, TIN-FC will issue a Provisional Receipt in case corrected e-TDS/TCS return file is valid and accepted by the TIN-FC. The Provisional Receipt issued by TIN-FC is deemed to be the proof of corrected e-TDS/TCS return filed by you.
Can I update the Assessment Year of a regular TDS/TCS statement by filing a correction statement?
No, the fields TAN, Form no., quarter, FY and A.Y quoted in a regular statement cannot be updated by furnishing a correction statement
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