Income Tax
TDS Correction Statement
Quick answer: TDS / TCS correction statement on TRACES — revise Form 24Q, 26Q, 27Q, 27EQ — PAN, amount, challan fixes.
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Why choose FinTax24
- 2200+ TDS correction statements filed for FY 2025-26
Audience
Who needs TDS Correction Statement?
- Employers with PAN error in Form 24Q — employee unable to claim TDS credit in ITR.
- Businesses with deductee PAN error in Form 26Q — vendor unable to claim TDS credit.
- Foreign remittance payers with TIN / PAN error in Form 27Q — non-resident unable to claim credit.
- Scrap / liquor / motor vehicle dealers with TCS error in Form 27EQ — seller unable to claim credit.
- Taxpayers who forgot to include a transaction in original return — late addition correction.
- Taxpayers with duplicate transaction in original return — removal of duplicate entry correction.
- Deductors with challan 281 mismatch — TDS deducted not matched with TDS deposited due to wrong BSR code or serial number.
How it works
- 1
Original Return Analysis
Original TDS / TCS return reviewed and error / omission identified with deductee-wise detail.
- 2
Correction Plan & Consent
Correction list prepared with deductor consent and deductee impact analysis.
- 3
TRACES JSON Drafting
Correction statement JSON drafted with original and corrected values — verified by CA.
- 4
TRACES Portal Upload
Correction uploaded on TRACES portal with TAN-based login and DSC verification.
- 5
Correction Processing & Approval
TRACES processes the correction; status tracked and any issues resolved within 30 days.
- 6
Revised Certificate Issuance
Revised Form 16 / 16A / 16C re-issued to deductees after correction processing.
Timeline
Why file this
Benefits of tds correction statement
- TDS / TCS correction statement on TRACES portal for FY 2025-26 (AY 2026-27).
- Revise Form 24Q salary TDS errors — wrong PAN, incorrect salary, TDS mismatch with Form 16.
- Revise Form 26Q non-salary TDS errors — wrong deductee PAN, amount, challan linkage, duplicate entries.
- Revise Form 27Q foreign remittance — incorrect TIN / PAN, country code, remittance currency.
- Revise Form 27EQ TCS errors — buyer PAN, sale value, TCS rate, challan linkage.
- Challan 281 mismatch resolution — link TDS deduction with the correct challan deposit entry.
- Revised Form 16 / 16A / 16C re-issued to deductees after correction processing.
- Avoid Section 234E penalty escalation and Section 271H penalty of ₹10,000-₹1 lakh for incorrect returns.
Documents required
8 documents needed for tds correction statement.
- TAN of the deductor / collector — mandatory for correction filing on TRACES.
- Original TDS / TCS return acknowledgment (token number and date of filing).
- PAN / TIN of deductee / buyer / seller for whom correction is required.
- Challan 281 details — original BSR code, challan serial number, amount, date of deposit.
- Corrected values — PAN, amount, transaction date, challan linkage, or any other field.
- TDS / TCS certificate reference — Form 16 / 16A / 16C issued to deductee / buyer.
- Justification / reason for correction — if request denied on TRACES for first attempt.
- Deductee consent (recommended) — for changes affecting deductee ITR processing.
DIY vs FinTax24
Why file tds correction statement with FinTax24 instead of doing it yourself.
| Aspect | DIY / Portal | Local Tax Consultant | FinTax24 |
|---|---|---|---|
| Filing time | 7–14 days (typical) | Varies by availability and workload | 3-5 business days |
| Expert review | None | Depends on the consultant | Expert verified on every filing |
| Document check | You self-verify; rejected on portal | Manual review may vary | Pre-verified by our team before submission |
| Support | Email / chatbot | Appointment-based or office hours | WhatsApp + phone, Mon–Sat 10 AM–7 PM IST |
| Pricing | Government fees only | Consultant fee + government fees | Transparent: From ₹1,499 + govt fees |
Frequently asked questions
What is a TDS / TCS correction statement under Section 200(3)?
Under Section 200(3), a deductor / collector who has filed a TDS / TCS return (Form 24Q / 26Q / 27Q / 27EQ) can file a correction statement on the TRACES portal to rectify any mistake — wrong PAN, amount, challan linkage, or missing transaction. Original return must be filed before correction can be submitted.
What types of corrections can be done in TDS / TCS return?
TDS / TCS correction can be done for: deductee / buyer PAN entity, incorrect PAN of deductor, wrong TDS / or TCS amount, missing transaction, duplicate transaction, challan 281 linkage entity, payment date entity, section code entity, and addition / deletion of records. Some fields are non-modifiable (TAN, quarter, form number).
Can TDS correction be filed for multiple quarters?
Yes. Each quarter requires a separate correction statement for the relevant form (24Q / 26Q / 27Q / 27EQ). Corrections cannot span multiple quarters in a single statement. Multiple corrections can be filed sequentially for the same quarter if needed.
What is the time limit for filing TDS correction?
There is no statutory time limit for filing TDS correction, but practical limits apply: deductee must claim credit within the relevant AY, and TRACES may flag stale corrections. Late correction attracts Section 234E penalty per day for any delay. File correction as soon as error is detected.
Does TDS correction require deductee consent?
Formally, deductee consent is not legally required for TDS correction. However, corrections affecting deductee PAN, TDS amount, or TDS credit can impact deductee ITR processing. Best practice: obtain written consent from deductee / buyer / seller for major corrections to avoid disputes and reassessment issues for the deductee.
What is the fee for TDS correction statement at FinTax24?
TDS / TCS correction statement filing starts from ₹1,499 per return at FinTax24 — covers correction analysis, TRACES JSON drafting, portal upload, and DSC verification. PAN correction starts from ₹1,499. Multi-deductee correction starts from ₹2,499. Challan mismatch correction starts from ₹1,999. Revised certificate issuance included.
Can I revise TDS certificate after correction?
Yes. After the correction statement is processed by TRACES, the deductor can download the revised Form 16 / 16A / 16C and re-issue to the deductee. The revised certificate supersedes the original. Deductee must must use the revised certificate for ITR TDS credit claim.
What is the consequence of incorrect TDS return without correction?
Section 234E penalty ₹1,000 / day for delayed filing. Section 271H penalty of ₹10,000 to ₹1 lakh for incorrect / incomplete return. Section 276B prosecution (1-3 years imprisonment + fine) for willful non-compliance. Deductee unable to claim TDS credit in ITR — leading to higher tax and demand notice.
Sources & authority: For regulations on tds correction statement, refer to incometax.gov.in , eportal.incometax.gov.in .
Last reviewed by: FinTax24 Compliance Desk · Reviewed on:
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