Challan Correction after once challan correction is done using challan oltas correction

I have tds demand ranging for FY 2014-2025. I mistakenly paid all the demand using challan for FY 2025-26 then adjusted demand for +1 and -1 FY. then once i used oltas challan correction for changing  FY to 2023-24 then adjusted demand for +1 and -1 FY. i am not able to use challan oltas correction as i have used that once. I have unutilised balance in the challan and i have demand to be adjusted in the year. Do i have to get refund from traces or is there any way to set off the the demand for same.

Replies (4)
Quick Summary
OLTAS challan correction can usually be done only once online. For further correction, approach Jurisdictional AO with a request. After update, unutilized balance can be adjusted against demand via TRACES.

  • Online Limit: The OLTAS correction facility on TRACES often allows only a single correction for certain fields.

  • Primary Solution: Submit a physical application for correction to your Jurisdictional Assessing Officer.

  • Outcome: Once the A.O. updates the Financial Year, the unutilized balance can be used to set off the demands through the TRACES "Pay 220" utility.

  • Online Limit: The OLTAS correction facility on TRACES often allows only a single correction for certain fields.

  • Primary Solution: Submit a physical application for correction to your Jurisdictional Assessing Officer.

  • Outcome: Once the A.O. updates the Financial Year, the unutilized balance can be used to set off the demands through the TRACES "Pay 220" utility.

Once the OLTAS challan correction window closes, you have two options: file a request with your Assessing Officer under Section 154 with the correct challan details, or use the TRACES portal under Request for Resolution to flag the mismatch before any demand is confirmed. Most practitioners go the Section 154 route as it creates a paper trail. If a demand notice has already been raised, pay only after confirming the correct challan is reflected in your TRACES account, otherwise the payment may not settle the demand properly. For the full TDS compliance breakdown and section rates for FY 2026-27, the [TDS rate chart and guide](https://taxgarden.in/blog/tds-rate-chart-2026-to-2027) covers current rules.

After the online challan correction has been made, usually another online correction of the same challan is not allowed. In this way, you should go to your Jurisdictional AO with a written application and supporting details of the challan for the further correction.

In the current situation where there is unused balance available, AO correction is the practical solution for balancing the unused balance in step with demand via TRACES. Also be aware that online correction is available for unconsumed challans and only till the time limit.

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