Short Deduction

View the demand details via Default Summary / Justification Report on TRACES. Pay ₹5,020 using Challan ITNS 281 (Minor Head 400) via e-Pay Tax, then submit an Online Correction Statement on TRACES to tag the challan against the default.

ONLINE CORREETION STATEMENT  or offline Correction (Conso File)  for the Tax Year 2026-27 (Form 140)on TRACES New Website has it  Started

If Yes then tell me procedure..............

On your follow-up about the correction process on new TRACES for TY 2026-27:

Yes, Online Correction Statements are available on the new TRACES portal for Tax Year 2026-27.

Here is the step-by-step process:
1. Log into TRACES (traces.gov.in) with your TAN
2. Go to Statements/Payments > Request for Correction
3. Select the relevant quarter (Q1 TY 2026-27), form type (26Q), and the TAN
4. Choose Online Correction (not Offline) and verify via KYC (PAN, date of birth, and other details)
5. Once the correction is open, go to Add Challan and tag the challan you paid (ITNS 281, Minor Head 400) to the short deduction default
6. After tagging, submit the correction statement

The system will match the challan and close the demand automatically within a few working days after the correction is processed.

Note: Ensure the challan date is not earlier than the TDS deduction date. If the challan is older than the default period, the portal may reject the tag.

This [TDS return correction guide](https://taxgarden.in/blog/tds-return-correction-revision-online-24q-26q-27q-traces-india-2026) has screenshots for the new TRACES portal correction workflow.

I had a short deduction notice for Q1. Unbelievably, it was for 14 paise - and the demand was rounded up to Rs 10.

Ignored it. And just today got an email stating "Original Form-140 statement filed by you for the TAN: MUMXXXXXXX for Q1 of TY 2026-27 with Token Number XXXXX has been re-processed (without any default) u/s 287 r.w.s 399 of Income-tax Act, 2025 by CPC-TDS. "

This is apparently what we pay taxes for - to subsidise the incompetence of our elected officials, bureaucrats and Infosys.