Filing a TDS return isn’t always error-free. Common mistakes—like incorrect PANs, wrong challan details, or missing deductee entries—can result in mismatched credit, notices, or delays in Form 16/16A generation. Fortunately, the Income Tax Department allows two methods to correct such errors:
- TDS Correction Statement – to fix specific errors without re-filing the whole return
- Revised TDS Return – to refile the entire return with updated information
Let’s break down both options with steps, penalties, pros, and cons.
1. TDS Correction Statement
What is a TDS Correction?
A TDS Correction is a targeted fix. It’s used when you need to make changes like:
- Incorrect PAN of the deductee
- Wrong challan number or amount
- Incorrect TDS section
- Errors in deduction details (dates, rates, amounts)
This method does not require you to re-enter the entire return—only the erroneous parts are corrected.
Step-by-Step Process to File a TDS Correction
Step 1: Log in to the TRACES portal using your TAN and password.
Step 2: Navigate to Defaults → Request for Conso File.
Select the Financial Year, Quarter, and Form (e.g., 24Q/26Q).
Step 3: Download the consolidated (Conso) file and extract it using the password: TAN + Date of filing in DDMMYYYY format.
Step 4: Open the Conso file in the RPU (Return Preparation Utility). Make necessary corrections (e.g., PAN, challan, deductee info).
Step 5: Validate the corrected file using FVU (File Validation Utility).
Step 6: Upload the validated .fvu file on the TIN-NSDL portal or Income Tax e-filing portal.
Step 7: Track the status under Statements / Payments → Track Correction Request on TRACES.
Penalties & Fees
- Filing a correction is free.
- However, if the original return was late, the following apply:
- Late Fee (Section 234E): ₹200 per day until filing
- Penalty (Section 271H): ₹10,000 to ₹1,00,000 if correction is not filed within 1 year from the due date
Pros and Cons
Advantages:
- Fixes only the specific errors—no need to refile everything
- Ensures proper credit to deductees in Form 26AS
- Enables timely generation of Form 16/16A
Limitations:
- Each correction type may require a separate request
- Requires use of RPU and FVU tools
- TRACES portal may delay processing or reject incorrect files
2. Revised TDS Return
What is a Revised TDS Return?
A Revised TDS Return is a complete re-submission of the original return. It is typically used when:
- There are multiple or major errors
- Incorrect section codes or deductee rows were entered
- Several challan details need changes
Step-by-Step Process to File a Revised Return
Step 1: Gather all the correct information:
- Deductee PANs
- TDS sections
- Deduction dates
- Challan numbers and amounts
Step 2: Download the latest version of RPU and FVU from TIN-NSDL.
Step 3: In the RPU tool, select “Revised Return” and enter the original PRN (Provisional Receipt Number).
Step 4: Re-enter all details—challans, deductees, and deductions—ensuring everything is updated.
Step 5: Validate the file using the FVU utility.
Step 6: Upload the .fvu file using either:
- TIN-NSDL portal with Digital Signature Certificate (DSC), or
- Income Tax e-filing portal using Aadhaar OTP
Step 7: Track the return status and wait for updates in Form 26AS of the deductees.
Penalties & Fees
- Late Fee (Section 234E): ₹200 per day until corrected
- Penalty (Section 271H): ₹10,000 to ₹1,00,000 if revised return not filed within 1 year
Pros and Cons
Advantages:
- Suitable for bulk corrections or major errors
- Fully replaces the earlier return with new, accurate data
Limitations:
- Requires rebuilding the return from scratch
- More time-intensive and error-prone
- A single mistake can require yet another revision
TDS Correction vs. Revised TDS Return – Quick Comparison
| Feature | TDS Correction Statement | Revised TDS Return |
|---|---|---|
| Scope of Correction | Specific fields only | Entire return re-submitted |
| Effort Required | Low to Medium | High |
| Tools Required | RPU, FVU, TRACES | RPU, FVU |
| Ideal For | Minor errors (PAN, challan) | Major or multiple errors |
| Penalty Risk | Low (if on time) | High (if delayed or incorrect) |
| Upload Platform | TIN/e-filing portal | TIN/e-filing portal |
FAQs on TDS Correction & Revised Return
Q1. Is it mandatory to file correction online?
Yes. Most corrections now require uploading via the portal. Manual corrections (through TIN-FCs) are phased out.
Q2. Can I do multiple corrections in one file?
Yes, if using the consolidated file. But certain corrections may need separate correction types under TRACES.
Q3. What happens if I don’t correct the return?
Deductees may not get credit in Form 26AS, leading to tax demand. Also, penalties under Sec 234E and 271H will apply.
Q4. Can a revised TDS return be corrected again?
Yes. Once the revised return is processed, a new correction can be filed based on the latest accepted return.
Q5. Is DSC mandatory for uploading?
For TIN-NSDL portal, DSC is required. For e-filing portal, Aadhaar OTP may be used for certain categories.
Conclusion
Correcting TDS returns is crucial to ensure that your deductees get accurate tax credit and avoid compliance notices. Whether you opt for a TDS Correction Statement or a full Revised TDS Return, timely action and accurate data entry are key to a smooth process.
For error-free guidance, tools, and updates on TDS compliance, stay tuned to Stox N Tax.
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