How to resolve Inconsistencies in TDS/TCS Statements through Correction Statements

The following explains the various possible problems in your TDS/TCS return, how to rectify them and how such inconsistencies can be avoided in future.

How are the inconsistencies identified?

When you file your TDS/TCS return, first the details regarding deposit of TDS/TCS made by you is compared with the data given by banks. The data is uploaded by banks on the basis of the TDS/TCS challans received by them. For this purpose, the Challan Identification Number (CIN), TAN and TDS amount as given in your TDS/TCS return is compared with the corresponding details given in the challan details provided by the bank that has accepted the tax. (CIN consists of the BSR code of the branch where you deposited the tax, date on which you deposited tax and the challan serial number which have been stamped on the counter foil of the challan given to you.)

Complete Update For E TDS return

Procedure for filing e-TDS/TCS Returns with Insufficient Deductee PAN

How do I file my quarterly e-TDS/TCS return, if I don’t have PANs of all deductees?

You can file your e-TDS/TCS return for the deductees who have valid PANs and subsequently file correction return for remaining deductees whose PANs were not available with you while furnishing regular return.

How do I include deductees whose details were not provided earlier due to unavailability of PAN?

You are required to file a correction return in a prescribed file format available at www.tin-nsdl.com

What amount should be mentioned in the challan details in case a regular return is filed only for those deductees whose PAN is present and subsequently a correction is filed with the remaining deductees?

The amount deposited vide that particular challan should be mentioned in the original as well as correction return. Refer below example:

• Suppose a challan payment of Rs.1,00,000/- has been made for non-salary TDS against 100 deductees each with TDS of Rs.1,000/-. Under the existing procedure the deductor will have to quote at least 85 PAN failing which his return will be rejected.
• If there are only 50 deductees whose PAN is available and the deductor attempts to file a return with details of 100 deductees with PAN of only 50 deductees, the return will automatically be rejected at present.
• However, if he files a return with challan amount of Rs. 1,00,000/- and with details of 50 deductees with PAN, with deductee total of Rs.50,000/-, the return will be accepted. It means the deductor can furnish the details relating to such deductees whose PANs are available.
• The deductor can later file correction returns with other details of remaining deductees with the same challan details, i.e., the challan amount should be the amount deposited (in this case Rs. 1,00,000/-).
• The return will be accepted so long as the TDS total of incremental deductees is less than or equal to the balance of Rs.50,000/-.

e-TDS Return – Preparation of Correction Statement More than Once on the Same Regular Statement (Correction on Correction)

-How many times can I furnish a correction TDS/TCS statement?

A correction TDS/TCS statement can be furnished multiple times to incorporate changes in the regular TDS/TCS statement whereas a regular TDS/TCS statement will be accepted at the TIN central system only once.

What are the important points to be kept in mind while preparing correction statement more than once on the same regular statement?

You have to kept in mind, the following points while preparing correction statement more than once on the same regular statement:
1. The TDS/TCS statement on which correction is to be prepared should be updated with details as per all previous corrections.
2. Modifications/addition/deletion in correction statements accepted at the TIN central system only should be considered.

The first correction filed by me contains three types of correction (three PRNs / Token Number) and one of the types of correction has got rejected at the TIN central system. What should I do?

The steps as under should be followed:
1. You have to update modifications as per the accepted corrections in the TDS statement.
2. Identify the record for which correction was rejected earlier by its sequence no. and fields for identification
3. Correct the said record.
4. Correction statement should contain updated values as well as value of identification field as per regular statement.

Which Provisional Receipt Number / Token Number should I quote while preparing correction statement more than once on the same regular statement?

There are two fields for Provisional Receipt Number (PRN) / Token Number in a correction statement as under:
a. Original Provisional Receipt Number / Token Number – PRN of the regular statement should be mentioned in this field.
b. Previous Provisional Receipt Number / Token Number – PRN of the last accepted correction statement should be mentioned in this field. In case the value in this field is incorrectly mentioned, the statement will get rejected at TIN central system for the reason: “Either Previous Provisional Receipt No. provided is incorrect or combination of Original Provisional Receipt Number / Token Number and Previous Provisional Receipt Number / Token Number is not in sequence”
Example:
Single batch correction statement – Only one type of correction in the file
a. You have filed a regular statement having PRN / Token Number 010010200083255 and subsequently filed a single batch correction statement having PRN / Token Number 010010300074112. While preparing correction statement, you have to mention PRN / Token Number 010010200083255 in the field original PRN and the PRN / Token Number 010010300074112 in the field Previous PRN.
Multiple batch correction statement – different types of correction in a single file
b. You have filed a regular statement having PRN / Token Number 010010200083255 and subsequently filed a multi batch correction statement having three batches and corresponding PRNs / Token Numbers as 010010300074112, 010010300074123 and 010010300074134. While preparing the correction statement, you have to mention PRN / Token Number 010010200083255 in the field original PRN and check the status of all the three PRNs of correction statement.

• If all the three PRNs / Token Numbers are accepted at the TIN central system, you may mention any of the three PRNs / Token Numbers in the field previous PRN.
• If any of the three PRNs / Token Numbers is rejected, then you should mention the PRN / Token Number which has been accepted at the TIN central system in the field Previous PRN.
• If all the three PRNs / Token Numbers are rejected, then you must mention the PRN / Token Number of the regular statement, i.e. 010010200083255 in the field Previous PRN.

How many times can I update PAN of a deductee/transacting party?

Structurally valid PAN of a deductee in the regular statement can be updated to another structurally valid PAN only once.

When does a statement get ‘Partially Accepted’?

A correction statement containing updates in PAN of deductee/employee may get Partially Accepted. This is possible when the PAN in the any of the records being updated by you in the correction statement is invalid, i.e. PAN not present in PAN Master Database. In such a scenario, the said record gets rejected resulting in partial acceptance of the statement.

What should I do if the status of correction statement filed by me is ‘Partially accepted’?

In case correction statement is in status ‘Partially accepted’, you have follow steps as under:
1. You have to update modifications as per the accepted records in the TDS statement.
2. Identify the deductee/salary record which has got rejected due to invalid PAN.
3. Rectify the incorrect PAN
4. Correction statement should contain value of identification keys as per regular statement along with the updated values.

What could be the cause of rejection of TDS/TCS statement for the reason “Total Deposit amount of deductees is more than Challan amount actually deposited in bank”?

The total tax deposited amount as per challan should be greater than or equal to the total tax deposited amount as per deductee details, else a regular TDS/TCS statement will not get validated through FVU.
If you file a correction statement for adding deductee records under a particular challan, the total tax deposited as per challan in regular statement should be greater than or equal to the total tax deposited in deductee details as per regular as well as correction statement.
Note: Amount in the fields Interest and others in the challan is not considered in the total tax deposited as per challan.

Provisional Receipt Number is now referred as Token Number with effect from FY. 2010-11 onwards.

Who is required to file e-TDS/TCS return and what is annual e-TDS/TCS Return and Other FAQ

What is annual e-TDS/TCS Return?

Annual e-TDS/TCS return is the TDS return under section 206 of the Income Tax Act (prepared in Form Nos. 24, 26 or 27) or TCS return under section 206C of the Income Tax Act (prepared in Form No. 27E), which is prepared in electronic media as per prescribed data structure. Such returns furnished in a CD/Pen Drive should be accompanied by a signed verification in Form No. 27A in case of Annual TDS returns or Form No. 27B in case of Annual TCS return.

What is quarterly e-TDS/TCS statement?

TDS/TCS returns filed in electronic form as per section 200(3)/206C, as amended by Finance Act, 2005, are quarterly TDS/TCS statements. As per the Income Tax Act, these quarterly statements are required to be furnished from FY 2005-06 onwards. The forms used for quarterly e-TDS statements are Form Nos. 24Q, 26Q and 27Q and for quarterly e-TCS statement is Form No. 27EQ. These statements filed in CD/Pen Drive should be accompanied by a signed verification in Form No. 27A in case of both e-TDS/TCS statements.

Who is required to file e-TDS/TCS return?

As per Income Tax Act, 1961, all corporate and government deductors/collectors are compulsorily required to file their TDS/TCS returns on electronic media (i.e. e-TDS/TCS returns). However, deductors/collectors other than corporate/government can file either in physical or in electronic form.

e-TDS/TCS returns have been made mandatory for Government deductors. How do I know whether I am a Government deductor or not?

All Drawing and Disbursing Officers of Central and State Governments come under the category of Government deductors.

Under what provision should e-TDS/TCS returns be filed?

An e-TDS return should be filed under Section 206 of the Income Tax Act in accordance with the scheme dated August 26, 2003 for electronic filing of TDS return notified by the Central Board of Direct Taxes (CBDT) for this purpose. CBDT Circular No. 8 dated September 19, 2003 may also be referred.

An e-TCS return should be filed under Section 206C of the Income Tax Act in accordance with the scheme dated March 30, 2005 for electronic filing of TCS return notified by the CBDT for this purpose.

As per section 200(3)/206C, as amended by Finance Act 2005, deductors/collectors are required to file quarterly TDS/TCS statements from FY 2005-06 onwards.

Who is the e-Filing Administrator?

CBDT has appointed the Director General of Income Tax (Systems) as e-Filing Administrator for the purpose of electronic filing of TDS/TCS returns.

Who is an e-TDS/TCS Intermediary?

BDT has appointed National Securities Depository Limited, (NSDL), Mumbai, as e-TDS/TCS Intermediary. NSDL has established TIN Facilitation Centres (TIN-FCs) across the country to facilitate deductors/collectors file their e-TDS/TCS returns

How to Verify correctness of e-TDS/TCS return Prepared and FAQs on File Validation Utility (FVU)

 After I prepare my e-TDS/TCS return, is there any way I can check/verify whether it conforms to the prescribed data structure (file format)?

Yes, after you have prepared your e-TDS/TCS return you can check/verify the same by using the File Validation Utility (FVU). This utility is freely downloadable from the NSDL-TIN website.

What is File Validation Utility (FVU)?

FVU is a program developed by NSDL, which is used to ascertain whether the e-TDS/TCS return file contains any format level error(s). When you pass e-TDS/TCS return through FVU, it generates an ‘error/response file’. If there are no errors in the e-TDS/TCS return file, error/response file will display the control totals. If there are errors, the error/response file will display the error location and error code along with the error code description. In case you find any error, you can rectify the error and pass the e-TDS/TCS return file again through the FVU till you get an error-free file.

What is the ‘Upload File’ in the new File Validation Utility?

Earlier the e-TDS/TCS return file after validating using File Validation Utility (FVU) had to be filed with TIN-FC. Now ‘Upload File’ that is generated by the FVU when the return is validated using the FVU has to be filed with TIN-FC. This ‘upload file’ is a file with the same filename as the ‘input file’ but with extension .fvu. Example ‘input file’ name is 27EQGov.txt, the upload file generated will be 27EQGov.fvu.

What are the platforms for execution of FVU?

For Annual Returns, FVU can be executed on any of the Windows platforms mentioned below: Win 95/Win 98/Win 2K Professional/Win 2K Server/Win NT 4.0 Server/Win XP Professional.

For Quarterly Returns, Java has to be installed to run FVU. Details are given in FVU section of NSDL-TIN website.

What are the Control Totals appearing in the Error/Response File generated by validating the text file through File Validation Utility (FVU) of NSDL?

The Control Totals in Error/Response File are generated only when a valid file is generated. Otherwise, the Error/Response File shows the nature of error. The control totals are as under:

• Number of deductee/party records : In case of Form 24/24Q, it is equal to the number of employees for which TDS return is being prepared. In case of Form 26/27/26Q/27Q, it is equal to the total number of records of tax deduction. 10 payments to 1 party would mean 10 deductee records.
• Amount Paid : This is the Total Amount of all payments made on which tax was deducted. In case of Form 24/24Q, it is equal to the Total Taxable Income of all the employees. In case of Form 26/27/26Q/27Q, this is equal to the total of all the amounts on which tax has been deducted at source.
• Tax Deducted : This is the Total Amount of tax actually deducted at source for all payments.
• Tax Deposited : This is the total of all the deposit challans. This is normally the same as Tax Deducted but at times may be different due to interest or other amount.

Are the control totals appearing in Form 27A same as that of Error/Response File?

Yes, the control totals in Form 27A and in Error/Response File are same.

What if any of the control totals mentioned in Form No. 27A do not match with that in e-TDS/TCS return?

In such a case the e-TDS/TCS return will not be accepted by the TIN-FC. You should ensure that the control totals generated by FVU and that mentioned on Form No. 27A match. In case of any difficulties/queries, you should contact the TIN-FC or TIN Call Centre at NSDL.

 

 

provision made to incentivise performance of workers cannot be disallowed u/s 43B(c)

DCIT Vs M/s Sri Shanmugavel Mills Ltd (Madras High Court)- The facts of the case, thus show that the provisions made was not tax payment of bonus but payment, as part of the wages and as an incentive for the performance of the workers. It is also noted that an amount of Rs.10,25,069/- was paid to the workers, in the subsequent year, in excess of the provision. Considering the fact provision for Rs.9,33,430/- had been made towards the incentive for the performance of the workers, we do not find any reason to differ from the findings of the Appellate Tribunal. Hence, the Tax Case Appeal stands dismissed.

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 18-07-2011

Tax Case (Appeal) No.695 of 2004

Deputy Commissioner of Income Tax Vs. Sri Shanmugavel Mills Ltd.

Prayer: Appeal filed against the order of the Income Tax Appellate Tribunal “B” Bench, dated 16.3.2001, made in I.T.A No.1769/Mds/91, under Section 260 A of the Income Tax Act, 1961.

JUDGMENT

(Judgment of the Court was made by M.JAICHANDREN,J.)

The Tax Case Appeal relates to the assessment year 1990-1991.

2. The assessee is a closely held company, which had filed a return, for the assessment year 1990-1991, on 24.12.1990, declaring a total income of Rs.36,63,900/- and a sum of Rs.32,72,274/-, as per the computation, under Section 115J of the Income Tax Act, 1961.

3. The assessee had made a provision for labour welfare expenses, amounting to Rs.9,33,430/-. The said amount was disallowed by the Assessing Officer on the ground that it was a mere provision, and that such a provision had been disallowed during the previous assessment year.

4. Aggrieved by the orders passed by the Assessing Officer, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), Coimbatore. The assessee contended that the payment in question was not in the nature of bonus, but an incentive based on the performance of the workers. The workers had been poorly paid and since, no increments were allowed the minimum bonus of 8.33% ws paid to them. 20% of their wages was given to them as an incentive, in lieu of the increments and higher bonus. As such, the amounts paid to the workers formed a part of their wages or salary. The actual payments made in the subsequent year was Rs.10,25,069/-, which was, in fact, in excess of the provision. Further, the nature of the claim had already been dealt with in an earlier order, dated 16.6.1990, relating to the assessment year 1987-1988. In such circumstances, the deduction claimed by the assessee should be allowed.

5. The Commissioner of Income Tax (Appeals), quoting the earlier order, relating to the assessment year 1987-1988, dated 16.6.1990, allowed the appeal filed by the assessee, deleting the disallowance. He stated that there were no changes in the facts, during the present assessment year, for taking a different view in the matter. He held what was being paid was not bonus or anything in the guise of bonus. But the incentives was paid to the workers, as a part of their salary or wages, based on their performance, in lieu of the annual increments in salary. The actual payment made in the subsequent year was more than what had been provided for. The provisions of Section 43B(c) would not apply to the disputed payments. Accordingly, the disallowance of Rs.9,33,430/- was deleted.

6. Aggrieved by the said order of the Commissioner of Income Tax (Appeals), dated 27.6.1991, the Revenue filed an appeal before the Income Tax Appellate Tribunal, Chennai Bench. The only ground raised by the Department, in the said appeal, was that the Commissioner of Income Tax (Appeals) erred in allowing a sum of Rs.9,33,430/-, as a provision for labour welfare expenses, when a sum of Rs.10,25,069/- had been, actually, spent during the subsequent year.

7. The Tribunal dismissed the appeal filed by the Revenue. On a perusal of the materials available on record the Tribunal found that, for the assessment year 1988-1989, the department had filed an appeal before the Tribunal, on an identical issue, challenging the order of the Commissioner of Income Tax (Appeals), in I.T.A.No.431/Mds/1992, relating to the same assessee. By its order, dated 29.11.2000, after a careful consideration of the facts and circumstances of the case, the Tribunal had decided the issue in favour of the assessee, confirming the order of the Commissioner of Income Tax (Appeals). As the facts and circumstances of the present case was similar to the one decided by the Tribunal, the appeal filed by the Revenue stood rejected. Aggrieved by the order of the Tribunal, dated 16.3.2001, the Revenue has filed the present appeal before this Court.

8. Learned standing counsel appearing on behalf of the Revenue contended that the Tribunal erred in law in not considering the fact that the provision made by the assessee was not actually for welfare expenses, but for bonus and incentives and that the actual payment made in the subsequent year was more than what had been provided for. The Tribunal should have seen that Section 43B(c) of the Income Tax Act, 1961, would apply to the facts of the present case.

9. On the submissions made on behalf of the appellant, as well as the respondent, and on a perusal of the records available, it is found that, the Department had filed an appeal before the Tribunal, on an identical issue, for the assessment year 1988-1989, in respect of the same assessee. The said issue was decided in favour of the assessee. It is noted that a similar provision had also made by the assessee, for the assessment year 1990-1991. It is also found that what was being paid to the workers was not bonus or any other payment in the guise of bonus. On the other hand incentives was paid, based on the performance of the workers, in lieu of the increase in salary and as part of the salary or wages.

10. The facts of the case, thus show that the provisions made was not tax payment of bonus but payment, as part of the wages and as an incentive for the performance of the workers. It is also noted that an amount of Rs.10,25,069/- was paid to the workers, in the subsequent year, in excess of the provision. Considering the fact provision for Rs.9,33,430/- had been made towards the incentive for the performance of the workers, we do not find any reason to differ from the findings of the Appellate Tribunal. Hence, the Tax Case Appeal stands dismissed. No costs

Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Singapore

Section 90 of The Income-Tax Act, 1961 – Double Taxation Agreement – Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Singapore – Second Protocol amending said Agreement – NOTIFICATION NO. 47/2011 [F. NO. 500/139/2002-FTD-II], DATED 01-09-2011

NOTIFICATION NO. 47/2011 [F. NO. 500/139/2002-FTD-II], DATED 1-9-2011

Whereas the Second Protocol amending the agreement between the Government of the Republic of India and the Government of the Republic of Singapore for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as “Protocol”) signed in India on the 24th day of June, 2011 shall enter into force on the 1st day of September, 2011, being the first day of the month after the date of the later of the notifications after completion of the procedures as required by the laws of the respective countries for the entry into force of the Protocol, in accordance with the provisions specified in Article 3 of the Protocol.

Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of the Protocol annexed hereto shall be given effect to in the Union of India for taxable periods falling after 1st January, 2008, that is, Financial Year 2008-09 and subsequent financial years in accordance with the provisions specified in Article 3 of the Protocol.

SECOND PROTOCOL AMENDING THE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of the Republic of India and the Government of the Republic of Singapore,

Desiring to conclude a Second Protocol to amend the Agreement between the Government of the Republic of India and the Government of the Republic of Singapore for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, signed at India on 24 January, 1994, as amended by the Protocol signed at India on 29 June, 2005 (hereinafter referred to as “the Agreement”),

Have agreed as follows:

Article 1

Article 28 of the Agreement shall be deleted and replaced by:

“ARTICLE 28

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political sub-divisions or local authorities, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Articles 1 and 2.

2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.

3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:

 (a)  to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

 (b)  to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;

 (c)  to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public).

4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.

5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.”

Article 2

Article 2 of the Protocol to the Agreement, signed at India on 29 June, 2005, shall be deleted.

Article 3

Each of the Contracting States shall notify to the other the completion of the procedures required by its law for the bringing into force of this Protocol. This Protocol shall enter into force on the first day of the month after the date of the latter of these notifications. The provisions of this Protocol shall apply to taxes relating to taxable periods beginning on or after 1 January of the three calendar years immediately preceding the calendar year of the entry into force of this Protocol.

Article 4

This Protocol, which shall form an integral part of the Agreement, shall remain in force as long as the Agreement remains in force and shall apply as long as the Agreement itself is applicable.

IN WITNESS WHEREOF, the undersigned, duly authorised thereto by their respective Governments, have signed this Protocol.

DONE in duplicate at New Delhi on this 24th day of June, 2011, in the Hindi and English languages, both texts being equally authentic. In the case of divergence between the two texts, the English text shall be the operative one.

New Procedure of Income Tax payment challan correction by banks (for physical challans) from 1st September 2011

Revised Procedure from 1st September 2011 to get Income Tax , TDS, Self Assessment Tax, Advance Tax, Wealth Tax  and Other Direct tax Payment Challan corrected / Rectified which were  paid at bank in Physical Mode and time period within which correction request can be made along with conditions , Procedures for the same and Format of the letter to bank.

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:

1. Correction in Name is not permitted.
2. Any combination of correction of Minor Head and Assessment Year together is not allowed.
3. PAN/TAN correction will be allowed only when the name in the challan matches with the name as per the new PAN/TAN.
4. 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.
5. For a single challan, correction is allowed only once. However, where ₁st correction request is made only for amount, a 2^nd correction request will be allowed for correction in other fields.
6. 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.

CBDT circular on refund procedure for excess TDS on payments to residents pertaining to the period up to 31 March 2010

Ref: Circular NO. 2/2011 [F.NO. 385/25/2010-IT(B)], DATED 27-4-2011 of Central Board of Direct Taxes (CBDT) on refund procedure for excess tax deducted at source (TDS) on payments to residents.

The new Circular is applicable for refunds pertaining to the period up to 31 March 2010. The procedure for refunds for the period from 1 April 2010 is governed by a specific provision in the Indian Tax Laws dealing with centralized processing of quarterly TDS statements. The refund for the period after 1 April 2010 will be granted based on data furnished in the statements, subject to rectification of apparent inconsistencies, without the requirement of a separate claim for refund.

Under the new Circular, claim for refund of excess TDS needs to be made within a period of two years from the end of the financial year (FY) in which the tax was deductible at source. This effectively meant that the claim for refund can be made only for FY 2009-10 on or before 31 March 2012.

The CBDT has now issued another Circular No. 6/2011 dated 24 August 2011 modifying the new Circular. The modification provides that the refund claims pertaining to the period up to FY 2008-09 may be furnished up to 31 December 2012.

The modification provides an opportunity for taxpayers who have refund claims for earlier periods to put up their claims by 31 December 2012.