The Preliminary check notice gives the deductor a chance to correct his mistakes online, related to PAN and Challan Errors. This service has been started by the CPC from quarter four of FY 2014-15 onward. The deductor need to wait for 24 hours form the time of receipt of the intimation to correct his mistakes online. The justification report will not be available and the status will be pending for process till 7 days.
Centralized Processing Cell (TDS) will inform you of PAN and Challan Errors, by an Intermediate Communication, while processing of Original Quarterly TDS Return Statements. It is just before Defaults are finally computed and Intimated to the deductor.
On receipt of the Intermediate communication, Deductor need to take corrective action within 7 days of receipt of such Intermediate communication. So that, you can avoid PAN Errors and Intimations from CPC (TDS) related to Short Payment and Short Deduction Defaults in the relevant TDS Return.
Main points of the process:
- Identifying of errors in PANs or Challans in preliminary check, related to incorrect data entry.
- Correcting the errors before CPC (TDS) generates defaults in TDS return.
- The Intermediate Default communication is sent by :
-
- Registered e-mail address of the deductor (Check your email under Profile Setting in Traces)
- SMS at Registered Mobile Number of the deductor(Check your email under Profile Setting in Traces)
- Message will be sent to the Deductor’s Inbox in TRACES.
- The correction will to be carried out by though Online Correction facility at TRACES after 24 hours of the receipt of such Communication and must be done within 7 days of receipt, to avoid TDS Default notice.
What are the advantages:
- Early information of PAN and Challan Errors, Even before the Original return is processed for Defaults and Default Intimations are sent.
- Online Correction facility is available to correct errors and to avoid Short Payment notice and Short Deduction Defaults notice.
- Savings in Administrative Costs, as it is online and help in avoidance of multiple Correction
- Deductees receives Correct Tax Credit in their 26AS statements.
- It Saves Paper and Environment! .
Actions to be taken:
- You need to use the Convenience of Online Correction facility available at TRACES to correct errors received through the intermediate communication.
- It is ease of convenience and available anytime anywhere basis through TRACES. It is a fast and easy way for closure of TDS defaults.
- All information is available at TRACES portal, when you login and it is pre-populated along with incorrect entries, which helps to avoid of further Data Entry errors by the deductor.