If you’re a small business that deducts TDS from employees’ paychecks, you must file a TDS return every quarter of the fiscal year. Say for instance, you filed the TDS return for the previous quarter. But after filing the return, you realized that you left out important information or made some error. Now in such a scenario, you are required to file a TDS revised return. Such a return can be filed only on submission and acceptance of the original return by the central TIN system. It is important to correct the errors made in the original return. This is so because if mistakes aren’t rectified, the tax credit won’t be reflected on form 16, form 16A, or form 26AS.
Below are the list of common errors that you can make while filing the TDS return.
You may simply forget or enter incorrect information about the pertinent deductor or the employer. Such information may comprise of details like name, address etc of the deductor. Therefore, to correct such information, you are required to undertake C1 type of correction. Another common error that you might make is giving incorrect Challan details in the original TDS return. Such incorrect information may refer to challan serial number, BSR code, tender date, or the challan amount. Hence, to revise such details, you need to make C2 type of correction.
Furthermore, if you need to change or delete information related to deductees (your employees), you need to use a C3 correction. And to alter salary detail records, you must use a C4 correction. But if you either forget to enter your Permanent Account Number (PAN) or enter it incorrectly, you must make a C5 correction.
Lastly, if you need to add a brand new challan with new deductees, you need to use a C9 correction for that.
How to Check the Current Status
You’re able to revise your TDS return only after the TIN central system has accepted it. And if you need to check the status of your filed returns online, you can do so within three days after submitting the original TDS return. Simply go to the TIN website, and enter your TAN and provisional receipt numbers. If it gets accepted, you can start the revision process. If it doesn’t get accepted, you need to wait.
How to Make Multiple Corrections
Sometimes, there might be a scenario where multiple corrections need to be undertaken. When such a situation occurs, your correction file may contain more than one correction statement. Such a statement is termed as multiple batch correction statement. After you upload your correction statement to the TIN Central System, the File Validation Utility (FVU) starts verifying your correction file. Once the FVU validates your correction file, following items will be created:
1. An .fvu file
2. Statement Statistics Report
3. Form 27A in PDF format.
Next, you need to copy that .fvu file onto a CD or pen drive. Then you need to submit such a CD or pen drive along with printed Statistics Report, Form 27A and requisite fees to your local TIN-FC center.
Software Options To File TDS Revised Returns
The NSDL offers free, downloadable software called return preparation utility that helps you file a revised TDS return. Many other third-party software options are listed on the TIN website. If you’re not sure how to use the software, or have any questions about the process, it’s always a good idea to contact a tax accountant.
It’s also prudent to learn how to handle TDS filing yourself, as it is required quarterly. Once you’ve done it a few times, it becomes easy. So if you make an error, look at it as a chance to learn and prepare for next time.