How to delete TDS entry in Traces?

While you cannot directly "delete" a TDS entry or an entire challan in TRACES in the way you might delete a file, TRACES provides robust mechanisms for correction and revision. "Deletion" is typically achieved by making necessary adjustments through revised TDS statements or by initiating a challan correction request.

Understanding "Deleting" a TDS Entry on TRACES

The term "delete a TDS entry" can refer to a few scenarios, each requiring a specific approach on the TRACES portal:

Removing or Correcting a Deductee Entry: This involves rectifying details for a specific deductee (e.g., wrong PAN, incorrect amount, duplicate entry, or an entry that should not have been present) within a filed TDS statement. This is primarily handled by filing a Revised TDS Statement.
Correcting a Challan Entry: This refers to rectifying errors in the Challan Identification Number (CIN), amount, assessment year, or other details of a deposited TDS challan. This is done through a Challan Correction Request.
Invalidating an Entire Challan: If a challan was deposited entirely by mistake or is a duplicate, it typically involves a challan correction to adjust its details or, in specific cases, applying for a refund, rather than a direct deletion.

Let's explore each method in detail.

Correcting or Removing a Deductee Entry (Filing a Revised Statement)

If you need to remove a deductee's record, modify an amount, or correct other details within a TDS statement that has already been filed, you must file a Revised TDS Statement.

When to File a Revised Statement:

Wrong PAN: The PAN of the deductee was entered incorrectly.
Incorrect Amount: The TDS deducted or paid was wrong.
Duplicate Entry: A deductee's entry was included multiple times.
Unnecessary Entry: A deductee's entry was included by mistake and needs to be removed.
Changes in Challan Mapping: A challan was incorrectly mapped to a deductee entry.

Steps to File a Revised TDS Statement:

Download the Consolidated File:
- Log in to the official TRACES website using your TAN and password.
- Go to Statements/Payments > Request for Consolidated File.
- Select the Financial Year, Quarter, and Form Type (e.g., 24Q, 26Q, 27Q, 27EQ).
- Validate the request using either the Token Number of the original statement or a DSC.
- Once available, download the consolidated file (which is password-protected). This file contains all details of the original statement filed.
Prepare the Revised Statement:
- Open the consolidated file using the TDS/TCS Return Preparation Utility (RPU) provided by NSDL.
- Make the necessary corrections in the appropriate fields. To "delete" a deductee entry, you would typically mark the row for deletion or correct its details as required.
- Ensure all necessary fields are updated, especially if correcting PAN or amount.
Validate and Generate the FVU File:
- Validate the prepared revised statement using the File Validation Utility (FVU).
- The utility will generate an .fvu file if there are no errors.
Upload the Revised Statement:
- Upload the generated .fvu file to the TRACES portal or submit it through a TIN-FC (TDS Facilitation Centre).

Key Considerations for Revised Statements:

Token Number: The token number of the original statement is crucial for downloading the consolidated file.
Impact on Form 26AS: Any corrections or deletions made via a revised statement will reflect in the deductee's Form 26AS after processing.
Provisional vs. Regular: Ensure the statement type (regular or provisional) aligns with your correction needs.

How to Correct a TDS Challan on TRACES

If the error lies in the TDS challan itself (e.g., wrong TAN, assessment year, or amount, or if it's linked incorrectly), you need to request a challan correction. This process is used to rectify deposited challans.

When to Request a Challan Correction:

Wrong TAN: The Challan was deposited under an incorrect Tax Deduction and Collection Account Number (TAN).
Incorrect Assessment Year: The assessment year mentioned on the challan is wrong.
Incorrect Major Head: The major head (e.g., 200 for company, 201 for non-company) was selected wrongly.
Incorrect Minor Head: The minor head (e.g., 400 for payable by taxpayer, 100 for advance tax) was wrong.
Challan Amount Mismatch: The amount mentioned in the challan is incorrect.

Steps to Initiate a Challan Correction Request (Online):

As per the latest procedure, you can initiate challan corrections online:

Login to TRACES:
- Login to the TRACES website with your TAN and password.
Navigate to Challan Correction:
- Go to Statements/Payments and select Request for Challan Correction.
Enter Challan Details:
- You will be prompted to enter the Challan Identification Number (CIN), challan amount, date of deposit, and BSR code of the challan you wish to correct.
- Verify these details carefully.
Submit the Request:
- Submit the request. You may need to provide additional details or justification for the correction.
- A request number will be generated for tracking.

Key Aspects of Challan Correction:

Correction Type	Online Availability	Description
TAN Correction	Yes	Change TAN linked to the challan.
Assessment Year Change	Yes	Modify the Assessment Year for which the challan was deposited.
Major/Minor Head Change	Yes	Change the type of payment category for the challan.
Amount Correction	Yes	Rectify the deposited amount.
Financial Year Change	No	Generally not allowed online; may require offline process or specific approval.

Online vs. Offline: While many corrections can be done online, some complex or specific corrections (like changing the financial year) might still require an offline application to the Assessing Officer (AO).
Approval by AO: Online requests for challan correction are often subject to approval by the jurisdictional Assessing Officer. The status of your request can be tracked on TRACES.

Tracking Challan Correction Request Status

After submitting a challan correction request, you can track its status on TRACES:

Go to Statements/Payments > Track Challan Correction Request Status.
Enter the request number to view the current status (e.g., "Submitted," "Processed," "Approved," "Rejected").

What if a Challan was Deposited by Mistake or Duplicated?

If a challan was deposited by mistake (e.g., paid twice for the same liability or paid when no liability existed), it cannot be simply "deleted" from TRACES.

Duplicate Challan: If a challan is a duplicate, you can adjust the excess amount against future TDS liabilities. You would utilize one challan in your TDS statement and keep the other for adjustment in subsequent quarters or years, linking it appropriately.
Challan Deposited in Error (No Liability): In cases where a challan was deposited mistakenly and there is no TDS liability against which it can be adjusted, you might need to apply for a refund of the excess payment. This process is typically handled by filing a refund application with the Income Tax Department, not directly through TRACES.

By understanding these correction and revision mechanisms, you can effectively manage and rectify TDS entries and challans on the TRACES portal.