TDS Challan Correction Procedure – Offline , Online in Traces

TDS Challan Correction Procedure – Offline , Online in Traces

Now that you have paid tax deducted to the account of the Central Government, what if there is any inadvertent mistake while making payment, such as choosing the wrong assessment year, choosing an incorrect primary 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 a mechanism to correct such errors. Let us know the procedure to correct the mistakes in the TDS challan. Challan correction can be carried out either online or offline.

TDS Challan correction offline – Physical challan

A new challan correction mechanism for correcting physical challans has been prescribed for payments made on or after 1st September 2011. We have provided below a list of challan corrections that can be carried out and who is authorized for such modification:
SI No.Fields in which correction to be madeAuthority to correctThe time limit for correction through bank
1PAN/TANConcerned assessing officer in case of online challans. Collecting bank* / assessing officer in case of physical challanWithin seven days from the challan deposit date
2Assessment YearWithin seven days from the challan deposit date
3Major Head codeWithin three months from the challan deposit date
4Minor Head codeWithin three months from the challan deposit date
5Nature of paymentWithin three months from the challan deposit date
6Total AmountWithin seven days from the challan deposit date
7NameConcerned assessing officer in case of both online and physical challansNA
*Challan correction by the bank is subject to the following conditions:
  • The bank cannot carry out name correction
  • Any combination of correction of Minor Head and Assessment Year together is not allowed
  • PAN/TAN correction will be allowed only when the name in the challan matches with the name as per the new PAN/TAN
  • The amount change is permitted only when the amount so corrected is not different from the amount received by the bank and credited to Government Account.
  • Correction is allowed only once for a single challan for a particular field. E.g., Where 1st correction request is made only for the amount, a 2nd correction request will be allowed for correction in other areas.
  • There will be no partial acceptance of change correction requests, 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 a 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 a copy of the original challan counterfoil
  • In case of modification desired for challans in Form 280, 282, 283, a copy of the PAN card must be attached.
  • In the case of non-individual taxpayers, the original authorization with a 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 request a modification 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 the TRACES website with a user ID, password and TAN
  • Under defaults, choose ‘Request for correction.’
  • Enter relevant Financial Year, Quarter, Form Type whether Latest Accepted Token number. The correction category should be “Online” and click on ‘Submit.’
  • Will generate a request number.
  • 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 on 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 the registered e-mail ID

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

RequestedWhen the user submits a request for correction
InitiatedThe RTDs CPC is processing request
AvailableRequest for correction is accepted, and the statement is made available for modification. The user can start correcting the information. Clicking on the hyperlink will take the user to the validation screen. Once the user clicks on request with ‘Available’ Status, the Status of request/statement will change to ‘In Progress.’
FailedRequest cannot be made available due to a technical error. Users can re-submit requests for the exact details.
In ProgressThe user is working on a statement. Clicking on the hyperlink will take the user to the validation screen
Submitted to Admin User:Sub-user / Admin User has presented correction statement to Admin User
Submitted to ITDAdmin User has submitted correction statement to ITD for processing
ProcessedThe statement has been processed by TDS CPC (either for Form 26AS or for defaults)
RejectedTDS CPC has rejected the statement after processing. Will be displayed rejection reaction in the ‘Remarks’ column.

Frequently Asked Questions

Can I delete a TDS challan?

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

Can I rectify the TDS Challan details if the Status of the same on the website is displayed as ‘Booked’?

Once the challan is updated with the 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 seven days of the challan deposit date. In this case, the taxpayer can send a challan correction application form to their respective bank.

For More information visit us at TAXAJ

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