TDS demand due to overbooked challan
This query is : Resolved
27 June 2024
I have received demand from income tax department due to one challan as overbooked.
There were total three challans in the return. Out of which two are matched and consumed and one is mentioned as overbooked. However I have entered all the details of the challan correctly. Can someone please guide how to deal with this demand
There were total three challans in the return. Out of which two are matched and consumed and one is mentioned as overbooked. However I have entered all the details of the challan correctly. Can someone please guide how to deal with this demand
27 June 2024
if their is actual over booking, then you need to pay the differential amount and make corrections ie move the overbooking entries from old challan to new challan.
29 June 2024
Sir I have already mentioned that all the details are correct which means that actually there is no overbooking
27 July 2025
If you're receiving a **TDS demand due to an "overbooked challan"**, but you're sure that:
* All **challan details** (CIN, BSR code, date, amount, etc.) are correctly entered,
* The challan **exists and has sufficient balance**,
* You **haven’t over-utilized** the challan amount in the TDS return,
then the issue is **likely due to a mismatch or technical validation error** at the CPC end (TRACES system).
---
### ✅ Here’s how to resolve it:
---
### Step 1: **Reconcile Challan Usage**
Download the following:
* **Challan Status Inquiry** (from NSDL OLTAS portal)
👉 [https://tin.tin.nsdl.com/oltas/](https://tin.tin.nsdl.com/oltas/)
* **Form 26AS** or **TRACES Justification Report** (for that FY/quarter)
Match the following:
* Challan amount
* TDS booked per deductee
* Challan amount consumed
* Balance remaining (if any)
---
### Step 2: **Check if Challan is Consumed More Than Available**
Even if *you entered everything correctly*, a **duplicate or mismatched usage** of the challan across multiple deductee rows may result in an "overbooked" status.
You can verify this in:
* **TRACES > Defaults > Request for Justification Report**
* Look for “Overbooked Challan” error code.
* It will list which deductee records are booked against the over-utilized challan.
---
### Step 3: **File an Online Correction on TRACES**
Here’s how to fix it:
#### Option A: **Online Correction – Reallocate Challans**
1. Log in to **TRACES** → Go to **‘Defaults’ → ‘Request for Correction’**.
2. Select **the relevant TDS return** and choose **"Challan Correction"**.
3. Reallocate or match deductees with **available balance** of another valid challan.
4. If no other challan has balance, you may need to **add a new challan** and match deductees with that.
5. Submit the correction.
> 📌 If all challans are fully valid and balance exists but still showing error, **refresh matching** in TRACES or file correction by simply saving without any edit to force validation.
---
### Step 4: **If All Fails – Raise a Grievance or Contact CPC**
If you believe it’s a **system error**, raise a grievance:
* **TRACES → Communication → Request for Resolution**
* Or via **Income Tax Portal → Grievances → Submit Grievance**
Attach:
* Challan copy from NSDL
* Challan status from 26AS
* Screenshots showing that total deductee amount ≤ challan amount
---
### ⚠️ Important Tip:
Overbooking mostly occurs when:
* Same challan is used in **multiple returns** (or wrongly carried forward)
* The **interest/fee** portion is not properly apportioned (i.e., claimed as TDS instead)
---
Let me know your challan breakup and deductee amounts if you want help validating them. I can also help guide you through the TRACES correction filing process step-by-step.
* All **challan details** (CIN, BSR code, date, amount, etc.) are correctly entered,
* The challan **exists and has sufficient balance**,
* You **haven’t over-utilized** the challan amount in the TDS return,
then the issue is **likely due to a mismatch or technical validation error** at the CPC end (TRACES system).
---
### ✅ Here’s how to resolve it:
---
### Step 1: **Reconcile Challan Usage**
Download the following:
* **Challan Status Inquiry** (from NSDL OLTAS portal)
👉 [https://tin.tin.nsdl.com/oltas/](https://tin.tin.nsdl.com/oltas/)
* **Form 26AS** or **TRACES Justification Report** (for that FY/quarter)
Match the following:
* Challan amount
* TDS booked per deductee
* Challan amount consumed
* Balance remaining (if any)
---
### Step 2: **Check if Challan is Consumed More Than Available**
Even if *you entered everything correctly*, a **duplicate or mismatched usage** of the challan across multiple deductee rows may result in an "overbooked" status.
You can verify this in:
* **TRACES > Defaults > Request for Justification Report**
* Look for “Overbooked Challan” error code.
* It will list which deductee records are booked against the over-utilized challan.
---
### Step 3: **File an Online Correction on TRACES**
Here’s how to fix it:
#### Option A: **Online Correction – Reallocate Challans**
1. Log in to **TRACES** → Go to **‘Defaults’ → ‘Request for Correction’**.
2. Select **the relevant TDS return** and choose **"Challan Correction"**.
3. Reallocate or match deductees with **available balance** of another valid challan.
4. If no other challan has balance, you may need to **add a new challan** and match deductees with that.
5. Submit the correction.
> 📌 If all challans are fully valid and balance exists but still showing error, **refresh matching** in TRACES or file correction by simply saving without any edit to force validation.
---
### Step 4: **If All Fails – Raise a Grievance or Contact CPC**
If you believe it’s a **system error**, raise a grievance:
* **TRACES → Communication → Request for Resolution**
* Or via **Income Tax Portal → Grievances → Submit Grievance**
Attach:
* Challan copy from NSDL
* Challan status from 26AS
* Screenshots showing that total deductee amount ≤ challan amount
---
### ⚠️ Important Tip:
Overbooking mostly occurs when:
* Same challan is used in **multiple returns** (or wrongly carried forward)
* The **interest/fee** portion is not properly apportioned (i.e., claimed as TDS instead)
---
Let me know your challan breakup and deductee amounts if you want help validating them. I can also help guide you through the TRACES correction filing process step-by-step.
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