Rectification of TDS previous years demands

TRACES allows online addition of new challans from FY 2007-08 onwards:

• Login to the TRACES portal using the deductor credentials.

• Go to ‘Request for Correction’ under the ‘Defaults’ menu.

• Select the relevant Financial Year, Form Type, and latest accepted token number.

• Submit a request as ‘Online Correction’. When the request status is ‘Available’, proceed by completing the KYC validation.

• From the correction category drop-down, choose ‘Add Challan’.

• Enter the details of the new challan and submit for processing.

If correction options are not directly available for older years in the portal, follow these steps:

File a correction statement through NSDL TIN FC first for very old years; once that is processed, online correction in TRACES becomes available and challans can then be added.

By following the online correction steps and prerequisites on TRACES, the company should be able to resolve TDS outstanding demands even for older financial years.

Thank you sir :) 

But one more things for older years , rectification in NSDL tin fc asking for statement and other details which company don't have .

They even don't have original filed acknowledgement copy .

If the company lacks these documents due to records not being maintained or being lost over time, it complicates the correction process.For cases where the correction option does not show for required years, contact your jurisdictional TDS Assessing Officer (or NSDL TIN FC) for special offline rectification or manual processing

Check remission before paying for these old years:

• CBDT Order dated 13 February 2024 (Budget 2024 announcement) remitted and extinguished outstanding direct-tax demands up to Rs 25,000 per entry for FY up to 2009-10, and up to Rs 10,000 per entry for FY 2010-11 to 2014-15, subject to an overall cap of Rs 1 lakh per taxpayer. TDS demands on TRACES were covered.

• So the FY 2007-08 and 2008-09 demands (if Rs 25,000 or less each) and the FY 2011-12 demand (if Rs 10,000 or less) may already be extinguished. Check TRACES → Defaults → "Demand remitted".

• Larger demands: TRACES online correction for old years is still possible: Request for Correction → statement type → "Add/Modify challan". You need the original token or provisional receipt number (PRN) and challan details. If statement details are lost, use the TRACES "Request for Justification Report" and the "Conso file" download, which contains the full original statement.

• If online correction is blocked: file a manual correction request with the jurisdictional TDS AO, with challan copies and an indemnity.

• Late fee under Sec 234E for pre-1 June 2015 periods is not leviable (Fatheraj Singhvi, Kar HC). Apply for rectification under Sec 154 if it was levied.

Thank you sir 😊