The Income Tax Department has said the Tax Deducted at Source (TDS) returns filed by tax deductors, as well as the tax returns filed by tax payers (assessees), were now being processed online.

In a statement issued here to explain how this system could be made complaint-free, the department urged the employers to file the TDS returns correctly and on time to ensure that the corresponding TDS claims made by the assessees in their returns were not denied by the system.

Further, the employers have to check whether the quarterly returns filed by them have been correctly downloaded by the National Securities Depository Ltd. (NSDL) on its website If mistakes are noticed in the statements uploaded, they should file correction quarterly returns. They should also ensure that the banks, through which the TDS is deposited in the government account, upload correctly the data they provide in the challans.

These are some of the common mistakes noticed while filling challan forms: payment of TDS for several years in one challan and noting only one assessment year in the challan (while it is necessary to use a separate challan for each year), payment of TDS under different codes in one challan (while it is necessary to use a separate challan for each code), failure to use separate challans for different categories of tax payers, failure to quote the TAN or not quoting the correct TAN, quoting the wrong assessment year, quoting the TAN of the branch by the Head Office or vice-versa, not quoting the code or quoting the wrong code, not quoting the status of the tax payer or quoting the wrong status and failure to quote the PAN or quoting the wrong PAN.

Common mistakes committed in the TDS returns include: quoting the wrong code, not filling up all the columns and furnishing wrong BSR code, date of payment and amount paid.

The statement said those who deduct tax at source should file correction returns if mistakes of such nature had crept into the data they had provided. The process of filing such correction statement is explained at the link

The Tax Information Network (TIN) offers a facility for every PAN holder to view his or her annual tax statement (Form 26AS) online. If omissions or discrepancies are noticed, they may bring it to the notice of the respective deductor. If the deductor does not set the matter right, it may be brought to the notice of the Income Tax Department.

Keywords: IT returnsTDISNSDL