How can I Modify / Add Deductee Details in TDS Return on TRACES ?

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Sakshi Shah

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TRACES
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TRACES means TDS Reconciliation Analysis and Correction Enabling System. It is the online portal for administration and implementation of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source). A Deductor can make corrections for TDS Return filed FY 2007-08 onwards. For corrections in PAN master, personal information, deductee details and challan details, there is no need to request for Conso file. Deductor can make a correction using the service ‘Request for Correction’ on TRACES. In the case of a paper return, you cannot opt for online correction.

Deductor can make an online correction in Deductee Details for the following reasons:

The Deductor can make an online correction to Add or Modify Deductee Details if he/she meets the following criteria:

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Steps for correction of Deductee Details in TDS Return on TRACES

  1. Log in to TRACES

    Log in to TRACES – Enter User Id, Password, TAN or PAN and captchaTRACES - Login Page for Taxpayers

  2. Navigate to request for correction

    Go to Defaults > Request for CorrectionTRACES - Request for Correction - Navigation

  3. Enter the required details

    Enter the required details – Financial Year, Quarter, Form Type, correction category and latest accepted Token Number. Click on ‘Submit Request’
    1. If the regular statement was a paper return, you cannot request for correction
    2. Form Type – 24Q, 26Q, 27Q, 27EQ
    3. The token number should be of the latest processed statement
    4. Correction category should be ‘Online’TRACES - Request for Correction - Financial Year, Quarter, Form Type, Token Number

  4. Request number

    The system generates a Request Number. To track the request status, go to Defaults > Track Correction RequestTRACES - Request for Correction - Request Number

  5. Search the request

    Search the request using Request Number, Date or View All
    1. Available – The correction request is accepted. The statement is now available for correction. Click on the hyperlink to go to the validation screen to proceed with the correction
    2. In Progress – The correction request is accepted and you are already working on a statement. Click on the hyperlink to go to the validation screen to proceed with the correction
    3. Rejected – The correction request is rejected. Click on ‘View Rejection Reason’ to check the reason for the rejection
    Note: If the status is ‘Submitted’, please wait for 24 to 48 hours for the status to change to ‘Available’TRACES - Request for Correction - Request Status

  6. KYC Validation

    Complete the KYC Validation using either of the below options:
    Option 1: KYC Validation using DSC
    Option 2: Normal KYC Validation without using DSC

  7. Type of correction

    Once the system validates the KYC details, the File Correction screen will appear. Select the Type of Correction as the ‘Modify / Add Deductee Details’ from the drop-down list.TRACES - Request for Deductee Details Correction - File Correction Screen

  8. Make the required corrections in the selected file

    Tab 1: Default Deductees
    This tab represents a list of Default Deductees as per TDS Statement with defaults. Click on hyperlinks to view the details of Short Payment and Short Deduction. Search the Deductees using:
    PAN as per TDS Statement
    CD Record Number – Challan Details Record Number
    DD Record Number – Deductee Details Record Number
    Type of Default – As per default of Short Payment or Short Deduction
    Click on ‘Search’TRACES - Request for Deductee Details Correction - Search Default Deductees

  9. Request for deductee details correction

    1. List of Default Deductees will appear as per the selected search option
    2. Select a deductee row and click on ‘Edit Deductee Row’ to edit the deductee details
    3. Select a deductee row and click on ‘Reset’ to reset the original values
    4. Select a deductee row and click on ‘View Challan Details’ to view details of the challan to which the deductee row relates. It is important to view the challan details so that when the deductor edits the deductee row, he/she is aware of the available challan balanceTRACES - Request for Deductee Details Correction - Edit Deductee Row

  10. Edit default deductee

    Under the option ‘Edit Deductee Row‘, edit the details as per the instructions below:
    1. Date of Payment or Credit – Date on which payment was made to Deductee. It cannot be a future date
    2. Amount Paid or Credited – Amount paid or credited to Deductee. Enter amount with two decimal places
    3. Total Tax Deducted – Sum of TDS / TCS, Surcharge, and Education Cess. The amount should be less than or equal to the amount paid or credited. Enter amount with two decimal places
    4. Total Tax Deposited – The amount should be less than or equal to the tax deducted. Enter amount with two decimal places
    5. The rate at which deducted/collected – Rate at which TDS is deducted or TCS is collected. Enter rate with four decimal places
    6. Reason for lower deduction / non-deduction – Enter reason if TDS is deducted at a lower rate. If TDS deducted is zero or TDS rate is zero, it is mandatory to select a reason
    7. Certificate Number – Number of the certificate issued by AO for non-deduction or lower deductionTRACES - Request for Deductee Details Correction - Edit Default Deductee

  11. Tab 2: All Deductees

    This tab represents a list of All Deductees as per TDS Statement
    Search the Deductees using:
    PAN as per TDS Statement
    CD Record Number – Challan Details Record Number
    DD Record Number – Deductee Details Record Number
    Click on ‘Search’
    List of All Deductees will appear as per the selected search option
    Select a deductee row and click on ‘Edit Deductee Row’ to edit the deductee details
    Select a deductee row and click on ‘View Challan Details’ to view details of the challan to which the deductee row relates. It is important to view the challan details so that when the deductor edits the deductee row, he/she is aware of the available challan balanceTRACES - Request for Deductee Details Correction - All Deductee

  12. Tab 3: Add New Deductees

    1. All the Challans in the statement with the Available Balance will appear
    2. Click on ‘Add Challan‘ to add a new challan
    3. Click on ‘Add Book Entry Receipts’ to add a book entry from OLTAS
    4. Select the Challan click on ‘Add Deductee Row
    5. A new row will appear. You can add the deductee details. Click on ‘Save Deductee’
    6. Click on ‘Submit Correction StatementTRACES - Request for Deductee Details Correction - Add New Deductee

  13. Action summary

    Action Summary with the summary of all corrections will be displayed. Click on the hyperlink to view the edited details. Once you verify the details, click on ‘Confirm’TRACES - Request for Correction - Action Summary

  14. Submit for processing

    Click on ‘Submit for Processing‘ to submit your correction. This feature is available to an Admin User only

  15. Attach DSC

    Attach DSC i.e. Digital Signature Certificate of the Authorised Person. The system generates a 15 digit token number. You can check the status under the Statements / Payments tab. To use DSC on TRACES, it is mandatory to download and install WebSocket emSignerTRACES - Request for Correction - Success message

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FAQs

What are the types of status for ‘Request for Correction’ on TRACES?

1. Requested – Deductor submits a request for correction
2. Initiated – Request for Correction is being processed by TDS CPC
3. Available – Request for Correction is accepted and the statement is available for correction. User can start correction on the statement
4. In Progress – User is working on a statement. Clicking on the hyperlink will take user to validation screen
5. Failed – Request cannot be made available due to technical error. User can re-submit request for same details
6. Submitted to Admin User – Sub-User submitted correction statement to Admin User
7. Submitted to ITD – Admin User has submitted correction statement to Income Tax Department for processing
8. Processed – TDS-CPC has processed the statement (either for Form 26AS or for defaults)
9. Rejected – TDS-CPC has rejected the statement after processing. You can view the reason for rejection in the ‘Remarks’ column

How many times can a Deductor update PAN of a Deductee on TRACES?

1. Deductor can update a valid PAN of a Deductee with another valid PAN only once
2. Deductor can update an invalid PAN in the regular statement with a valid PAN but not with another invalid PAN

Can a Deductor move a Deductee Row from one challan to another challan for the same Quarter?

Yes, Deductor can move deductee row from one matched challan to another for the same quarter. However, it is possible only if there is available balance in the challan.
For more information refer E-tutorial Resolution of Overbooked Challan (Movement of Deductee Row)

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