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Major Relief for Taxpayers: CPC (TDS) Reprocesses TDS Returns for FY 2023-24

Last updated: 07 June 2024

In a notable development, the Centralized Processing Cell (TDS) has reprocessed TDS returns for the FY  2023-24, effectively removing short deduction demands. This action aligns with the relief measures outlined in Circular 6/2024, addressing higher TDS/TCS rates caused by the non-linkage of PAN with Aadhaar.

Major Relief for Taxpayers: CPC (TDS) Reprocesses TDS Returns for FY 2023-24

Key Details of Circular 6/2024

Circular 6/2024 was introduced to mitigate the higher TDS/TCS rates imposed due to the non-linkage of PAN and Aadhaar. According to the circular, transactions up to March 31, 2024, are eligible for relief, provided the PAN is linked with Aadhaar by May 31, 2024. This initiative aims to reduce the compliance burden on taxpayers and ensure smoother processing of TDS returns.

CPC (TDS) Reprocesses FY 2023-24 TDS Returns, Removes Short Deduction Demands

CPC (TDS) Actions on TDS Returns

In accordance with Circular 6/2024, the CPC (TDS) has reprocessed the TDS returns for FY 2023-24, targeting those affected by short deduction demands due to higher TDS/TCS rates. This reprocessing was completed in early June 2024, delivering prompt relief to taxpayers impacted by the PAN-Aadhaar linkage issue.

Implications for Tax Professionals and Taxpayers

Tax professionals and taxpayers are encouraged to review the reprocessed TDS returns to confirm that short deduction demands have been eliminated. Ensuring that the updated returns reflect accurate TDS amounts is crucial for compliance with Circular 6/2024.

Steps to Verify Updated TDS Returns

To verify the updated TDS returns, follow these steps:

  • Log in to the TRACES Portal: Visit the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal and log in with your credentials.
  • Access the TDS Statement: Navigate to the relevant TDS statement for FY 2023-24.
  • Check for Updates: Review the statement to confirm the removal of short deduction demands.
  • Cross-verify with Circular 6/2024: Ensure that the adjustments align with the provisions of Circular 6/2024.


The removal of short deduction demands from TDS returns for FY 2023-24, facilitated by Circular 6/2024, provides significant relief to taxpayers. The swift action by the CPC (TDS) and the Income Tax Department highlights their commitment to resolving taxpayer issues efficiently.

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