e-TDS :- Delete Matched or Over Booked TDS Challan

Friends,    Income Tax Department has raised demand on account of Short payment of TDS challans.  After checking it has been found that some demands have been issued due to double entry of single challan in TDS return.  On processed by Income Tax Department, the said challans have been marked in Blue Color with remarks "Over Booked".    Earlier there was no control in TDS RPU, deductor can update or delete any challan having Matched or Over Booked etc.  But now deductor can not update all fields of  challan remarked as Matched or Over booked.  Only some fields like section code,  Interest Amount and Others Amount. 

Status of Challan may be easily clarified in following manner :-

What information does 'Challan Consumption Details' table provide?

• Challan Consumption Details table displays the statement(s) in which the particular challan was consumed.
  
  
• Challan status is displayed as 'Over Booked' when sum of tax deposited for underlying deductee rows against challan ('Amount Claimed') is greater than balance available for the challan in OLTAS.
  
• Challan status is displayed as 'Matched' when:
  
  The challan is not consumed by the deductor, i.e., sum of tax deposited for underlying deductee rows against the challan ('Amount Claimed') is 'Zero',
  
  Or
  
  The challan is Partially Consumed by the deductor, i.e., sum of tax deposited for underlying deductee rows against the challan ('Amount Claimed') is less than challan amount the challan,
  
  Or
  
  The Challan is Fully Consumed by the deductor, i.e., sum of tax deposited for underlying deductee against challan, i.e., 'Amount Claimed' is equal to the challan amount.

How can I Delete Matched or Over Booked TDS Challan Amount. 

          No doubt, there is no provision of deletion of Matched or Over Booked challan in NSDL RPU or in FVU.  But effect of the same or to remove the demand of Income Tax Department raised on account of Over Booked TDS Challan, the following fields may be updated as under :-

1. Amount Paid/Credited is equal to Zero
2. TDS Amount is equal to Zero
3. Surcharge Amount is equal to Zero
4. Education Cess Amount is equal to Zero
5. Total Tax Deposited Amount is equal to Zero
6. Date of Deduction Amount is equal to Blank
7. Rate on which Tax Deducted is equal to Zero

In this way effect of Matched or Over Booked TDS challan can be removed and fresh challan detail can be entered as an Addition of new TDS Challan etc. 

What are the reasons to reject the correction in challan detail by TDS-CPC?

1) Rejection reasons pertaining to challan details are as follows:

•  Challan detail record on which correction has been filed does not exist in regular / previous statement
•  In a correction statement, verification keys from challan data should match with the corresponding            fields in regular statement

1. Verification keys for Non Nil Statement - Last transfer voucher number, Last Bank-Branch Code / Form 24G Receipt Number, Last date of transfer voucher / bank Challan, Last deposit amount as per challan
2. Verification keys for Nil challan - Last date of transfer voucher number / bank challan, last total deposit amount as per challan

2) If an unmatched challan is being corrected, then the sum of deposit amount of all the active deductee rows in the regular and correction statement and corrected values of claimed TDS interest and claimed TDS Others amount should be less than or equal to Total deposit amount of challan given in statement

3) If a matched challan is being corrected, then available balance amount in the challan should be sufficient for consumption of updated sum of deposit amount of all the active deductee rows in correction and corrected values of claimed TDS interest and claimed TDS Others amount

4) In case of existing matched / partially matched challan, deductor can only update Cheque / DD Number, claimed TDS Interest amount, claimed TDS Others amount and Section code

5) If deductor updates only deductee details, then claimed TDS Interest amount and claimed TDS Others amount as given in the challan should match with the corresponding values present in regular / previous return

Correction In OLTAS Challan :- Pan / Tan / Assessment Year / Total Amount / Major Head / Minor Head / Nature of Payment

               NSDL receives tax collection data as uploaded by the bank. NSDL is not authorized to carry out any changes in the data sent by the bank to TIN. 

The fields that can be corrected by the Taxpayer through Bank are tabulated below:

Sl. No.	Type of Correction on Challan	Period for correction request (in days)
1	PAN/TAN	Within 7 days from challan deposit date
2	Assessment Year	Within 7 days from challan deposit date
3	Total Amount	Within 7 days from challan deposit date
4	Major Head	Within 3 months from challan deposit date
5	Minor Head	Within 3 months from challan deposit date
6	Nature of Payment	Within 3 months from challan deposit date

Note :

1. Above correction mechanism is applicable only for physical challans with deposit date greater than equal to September 1, 2011. 

2. Any correction request initiated by the taxpayer after the time limit specified above shall be rejected by Bank. 

3. For challans with challan deposit date from September 1, 2011 to September 30, 2011, the time limit for correction in TAN/PAN, Assessment Year and Amount will be within 45 days from challan deposit date. 

4. The fields that can be corrected and the entity authorized to carry out corrections on challan with deposit date less than September 1, 2011 are as below:

Sl. No.	Type of Correction on Challan	Performed By
1	PAN/TAN	Assessing Officer
2	Assessment Year	Assessing Officer
3	Major Head	Assessing Officer /Bank
4	Minor Head	Assessing Officer
5	Nature of Payment	Assessing Officer
6	Total Amount	Bank
7	Name	Bank

5. For rectifications in challans paid through online mode (internet challan) , taxpayer may contact their concerned Assessing Officer (AO) of the Income Tax Department (ITD). 

e-TDS:- Tax Deducted at Higher Rate in the absence of PAN

Friends

               As a deductor, if you have submitted TDS with Flag "C" a Higher Rate in absence of PAN number and TDS deducted less than 20%.   Now Income Tax department has sent demand for the same and now you have  collected PAN number from deductee.   

           No doubt that in present FVU power has been increased and FVU checks rate of Tax while generating FVU, but earlier it was not possible.   

                After getting notice from income tax department,  if deductor want to submit correction statement he faces following problems as shown in below pictures :-

1. Rows can not be deleted in case of  tax deducted/collected at higher rate. 
2. Flag already marked "C" of higher rate, can not be changed. 

It is crucial  position,  what should be done by deductor to submit correction return without paying higher rate of tax @ 20%, 

Solution is under question 

            Presently, we do not know proper solution of  this problem, but if anyone knows solution of this problem, he can reply through comment on this post in the interest of deductor. 

E-tds/E-tcs Correction in challan Mechnaism

Challan Correction Mechanism

Under OLTAS (On Line Tax Accounting System), the physical challans of all Direct Tax payments received from the deductors / taxpayers are digitized on daily basis by the collecting banks and the data transmitted to TIN (Tax Information Network) through link cell. At present, the banks are permitted to correct data relating to three fields only i.e. amount, major head code and name. The other errors can be corrected only by the assessing officers.

New Procedure of challan correction by banks (for physical challans):

To remedy this situation, a new Challan Correction Mechanism for physical challans has been put in place. Under this mechanism, for income tax payments made on or after 1.9.2011, the following fields can be got corrected through the concerned bank branch:

>     Assessment Year

>     Major Head Code

>     Minor Head Code

>     TAN/PAN

>     Total Amount

>     Nature of payment (TDS Codes)

The time window for the correction request by tax payer is as follows :

S.No	Correction required in Field name	Period of Correction Request (from Challan Deposit Date)
1	TAN/PAN	7 days
2	Assessment Year	7 days
3	Amount	7 days
4	Other fields (Major head, Minor head, Nature of payment)	Within 3 months

The time window for correction by the bank is 7 days from the date of receipt of correction request from the tax-payer.

Conditions:

The changes can be made by the banks, subject to following conditions:
i.          Correction in Name is not permitted.

ii.        Any combination of correction of Minor Head and Assessment Year together

is not allowed. iii.       PAN/TAN correction will be allowed only when the name in the challan

matches with the name as per the new PAN/TAN. iv.       The change of amount will be permitted only on the condition that the

amount so corrected is not different from the amount actually received by

the bank and credited to Govt. Account. v.        For a single challan, correction is allowed only once. However, where 1^st

correction request is made only for amount, a 2^nd correction request will be

allowed for correction in other fields. vi.       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 requested changes fails the

validation test. Procedure:

i.          The tax-payer has to submit the request form for correction (in duplicate) to

the concerned bank branch. ii.        The tax-payer has to attach copy of original challan counterfoil. iii.       In case of correction desired for challans in Form 280, 282, 283, the copy of

PAN card is required to be attached. iv.       In case of correction desired for payments made by a tax-payer (other than

an individual), the original authorization with seal of the non-individual tax­payer is required to be attached with the request form. v.        A separate request form is to be submitted for each challan.

Procedure of challan correction by Assessing Officers (both physical and e-payment challans)

After the window period available to banks for challan correction, the assessee can make a request for correction to his or her assessing officer, who is authorized under the departmental OLTAS application to make such correction in challan data in bonafide cases, to enable credit of the taxes paid, to the concerned assessee.

Format of application to bank for challan correction to be requested by the taxpayer

To

The Branch Manager,

----------------------------  (Address of Branch)

Taxpayer Details : Taxpayer Name :

Taxpayer Address :

Taxpayer TAN/PAN :

Name of Authorized Signatory : (in case of non-individual taxpayer)

Sub : Request for Correction in Challan No: 280/281/282/283 [Strike out which ever is not applicable]

Sir/Madam,

I request you to make corrections in the challan data as per following details Challan Details:

BSR Code	Challan Tender Date (Cash/Cheque Deposit Date)	Challan Sl. No.

Sl. No.	Fields in which correction required	Please Tick	Original Details	Modified Details
1.	TAN/PAN (10 digit)
2.	Assessment Year (YYYY)
3.	Major Head code (4 digit)
4.	Minor Head code (3 digit)
5.	Nature of Payment (3 digit)
6.	Total Amount (13 digit)

Note: Please tick against the relevant fields where changes are required.

Tax payer/Authorized Signatory Date

Note:

1.    Attach copy of original challan counterfoil.

2.    In case of correction to challan 280, 282, 283 attach copy of PAN card.

3.    In case of a non-individual tax payer, attach the original authorization with seal of the non-individual tax-payer.

4.    The request form for correction is to be submitted in duplicate to the bank branch.

5.    A separate request form is to be submitted for each challan.