✦
Ignoring a TRACES default
It does not go away on its own.
Income Tax
TDS correction return service
Made a mistake in a filed TDS return? We download the latest conso file from TRACES, correct the wrong PAN, challan or deduction details, and file the correction statement. A correction is allowed only within two years from the end of the tax year in which the return was due, so do not wait.
PAN, challan, deductee fixesChecked by a CA before filingFree consultation
Overview
What is a TDS correction return?
A correction statement changes the details of a TDS return you already filed. It is prepared from the consolidated (conso) file on TRACES and carries only the records that change. Our TDS correction guide has the steps and the correction types.
Who it's for
Who needs a TDS correction return?
- Deductors with a default on TRACES (short payment, short deduction, interest or late fee) caused by wrong data.
- Anyone who reported a wrong PAN, so the credit went to the wrong person.
- Businesses whose challan details do not match the bank's record, or who left out a challan or a deductee.
Types
Types of TDS corrections
Correction
What it fixes
PAN correction (C5)
Wrong deductee or employee PAN
Challan correction (C2, C9)
Wrong challan details, or a missing challan with its deductees
Deductee correction (C3)
Wrong amount, date or section, or a missing deductee
Deductor correction (C1)
Deductor name or address
Documents required
Documents we need
- ✓Receipt (provisional receipt number) of the original return and any earlier correction
- ✓TRACES login (TAN) so we can request the conso file
- ✓The correct PAN, challan or deduction details
- ✓The default notice or justification report, if you have one
How it works
How we file it
01
Request the conso file
We request the conso file on TRACES and download the justification report if there is a default.
02
Find and correct the errors
We correct each error under the right correction type.
03
Check, validate and file
A chartered accountant checks the correction, we validate and file it, then check on TRACES that the default is cleared or the credit has moved.
Don't delay
What happens if you don't correct it
- The deductee does not get the credit in Form 26AS, so they cannot claim it in their return.
- The default stays open, and the interest or late fee shown in it stays payable.
- After two years you cannot correct it at all.
Pricing
TDS correction return fees
The fee depends on the number of corrections and deductees. We tell you the fee in a free consultation before you pay.
Avoid these
Mistakes to avoid
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Correcting from an old conso file
Request a fresh one before each correction.
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Waiting too long
The two-year limit is final.
Why us
Why choose FilingSetu?
Checked by a CA before filing
A chartered accountant checks every correction before we file it.
A named manager
One person for your correction.
A free consultation
Talk to us before you decide.
Regular returns too
We can file your quarterly TDS returns so the next one is right.
FAQ
TDS Correction Return, answered.
What is the time limit to file a TDS correction?
Two years from the end of the tax year in which the original return was due (section 397(3)(f) of the Income-tax Act, 2025).
Can I file multiple corrections for the same quarter?
Yes. Each new correction quotes the receipt numbers of the original return and every earlier correction, and it must be filed within the two-year limit.
How do I correct a wrong PAN in a TDS return?
With a C5 correction. After processing, the credit moves to the right PAN's Form 26AS.
Will a correction clear my TDS default notice?
If the default came from wrong data, yes. If the tax, interest or fee is really due, it must be paid and the challan added through the correction.
What is a conso file?
The consolidated file of your processed return, downloaded from TRACES. Every correction starts from the latest one.
Can a TDS return for FY 2022-23 still be corrected?
No. The department stopped accepting corrections for FY 2018-19 Q4 to FY 2023-24 Q3 from 1 April 2026.
How much does a TDS correction cost?
It depends on the number of corrections and deductees. We tell you the fee in a free consultation before you pay.
Got a TDS default notice?
Talk to us about your correction return: free, no obligation.