Defaults were on account of incorrect inputting of PAN details due to which TDS returns were processed at penal tax rate resulting into short deduction.
Necessary correction statements had been filed duly rectifying the PAN details.
These pertain to Fin. Yr. 2010-11, 2011-12 & 2012-13
Further, the Justification reports as had been downloaded prior to October 2012 from NSDL website (for the relevant period) were showing due effect to our correction statements. But now due to migration from NSDL to TRACES the defaults are again being shown at the original amounts.
Dear Rachit,
NSDL and TRACES are working on altogether different platform and default generated through TRACES is more stringent than NSDL.
In my Opinion, default should not come after correction return filing in case of Incorrect PAN No but if it correction due to PANNOTAVBL case under "C" flagging then default cannot be removed.
In my view, you should file correction return again and check the status after it is processed.
Dear Vikas,
Thanks for your reply.
I would just like mention here that after filing of the necessary correction statement and when the status of it is being shown as Processed for Form 26AS still there is no change in the default amount.
Further, the parties whose PAN have been rectified confirm to have receive the credit in their Form 26AS statement.
To further elaborate upon the issue I would like to mention here that when the status of correction statement filed is shown as 'Processed for Form 26AS' on TRACES; the effect of the said correction statement is reflected in the consolidated TDS file but not in the justification report (both downloaded afresh). Similarly there is no change in default list amount.
When you take up the issue with TRACES CPC for regeneration of justification report the matter is not attended upon.
You are correct Rachit. I have spoken with TRACES people on this. Your returns are process for form 26AS. Default will be removed once it is processed with Defaults.
Till that time, defaut will be status quo.
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