Correction in TDS return New Traces Portal

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This discussion addresses how to file a correction for a TDS return on the new TRACES portal, specifically for an error related to late payment interest for Q1 FY 2026-27. The interest has now been paid, but the usual correction method on the new website isn't available. The standard procedure involves submitting an online correction request, selecting the interest payment option, tagging the challan, and allocating the amount. Further guidance is needed on how to proceed with this correction on the updated TRACES platform.

Shobhit Jain

Shobhit Jain (Querist)
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02 August 2026 How to file the correction for the TDS return for Q1 FY 2026-27?
Error was due to interest on late payment of TDS which is now paid how to file correction now?

Aashok Kumar Sharma online

Aashok Kumar Sharma

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02 August 2026 To correct a late payment interest error on TRACES for Q1 FY 2026–27, submit an Online Correction Request under the Defaults tab, select Pay 220I/Interest/Levy, tag the paid challan, allocate the paid amount to the Interest column, and submit using DSC.

Shobhit Jain

Shobhit Jain (Querist)
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04 August 2026 but that option is not available on new website

CA Rakesh

CA Rakesh (Expert)
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06 August 2026 If the error in your Q1 TDS return for FY 2026-27 occurred due to the non-payment or short payment of interest on the late deposit of TDS, you must first ensure that the applicable interest has been paid through the relevant challan. Once the payment is reflected, you can prepare and e-file a TDS correction statement by updating the necessary details and submitting it through the prescribed filing process.

To make the correction filing process simpler and more efficient, you may consider using Gen TDS Software (https://saginfotech.com/GeneTds.aspx). It is a reliable solution for preparing and e-filing TDS/TCS returns and correction statements, helping tax professionals, businesses, and other users manage their compliance accurately and on time.

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