Tuesday, September 14, 2010

TDS/TCS Corrections Statements

                 As everyone knows that now Income Tax Department is issuing letters to Deductors to rectify the e-tds/e-tcs returns  or raising demand letters in bulk.   It's main motive is only correct all return so that deductee's claims/adjusments/refunds can be adjusted easily. 

                To rectify the e-tds/e-tcs return, complete knowledge is required to correct the original etds/etcs statements.   NSDL has also provided complete detail procedure to rectify the statements from original return or correction statement more than one time.

                In my view every deductor should read below FAQ before submitting their correction for first time or correction statement more than one time.

Various details with respect to correction statements
  1. Preparation of correction statements
  2. Details and tools required for preparation of correction statements are given in this section. Details include data structure, where as tools include return preparation utility and file validation utility. Sample files prepared are also placed in this section. The section also includes Deductors’ manual for preparation of correction statements.
  3. FAQs regarding correction returns-
  4. FAQs regarding correction statements have been placed in this section. This section has answers to the frequently asked questions about correction statements like
    What is a correction statement? What are the different types of correction statements? Can two different types of corrections be done in a single statement? What are the charges for filing correction statements? What are the different status of challan? Can I update challan details if the status of the challan is booked? How do I prepare a correction statement more than once?
  5. Resolving inconsistencies in TDS/TCS statements through correction statements
  6. Certain inconsistencies with respect to TDS/ TCS statements can be rectified by filing correction statements. Details of the same are included in this section.
  7. Request for consolidated TDS/ TCS statement in order to prepare correction statements-
  8. Consolidated statement is a statement prepared with the help of details of regular as well as correction statements accepted at the TIN central system for a particular periodicity, form no and TAN. This statement is prepared and provided by NSDL to the entities who have successfully registered their TANs. It is easier to file a correction statement with the help of consolidated TDS/ TCS statement as it has been prepared after considering the impact of correction statements if any, filed in past. Detailed information about consolidated statements as well as procedure for obtaining the statements is available in this section.

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