TDS Correction Online: How to File a TRACES Correction Statement and Clear Defaults
A TDS correction is filed as a correction statement against the token number
(PRN) of the original quarterly statement. Challan, PAN and deductee-detail errors can be fixed
online on TRACES, and larger changes go through an offline file built from the Conso file.
Filing the correction does not close a default on its own. The default clears only once TDS CPC
processes the statement and any interest or late fee is paid.
Fix Filed via
Correction Statement
Interest (Late Deduction / Deposit)
1% / 1.5% a Month
Correction Window
Six Years
Key takeaways
There is no separate "revised return" in TDS. The tool for fixing a filed
statement is the correction statement.
Online correction covers the common cases: challan details, PAN and personal
information. Challan fixes need no DSC, while PAN and personal-information fixes
do.
Paper statements cannot use online correction.
Interest on late deduction (1% a month) and late deposit (1.5% a month) and the
late filing fee under Section 234E are separate from the correction. You pay them
through a challan.
Corrections are limited to a six-year window under a change that took effect from
1 April 2025.
What a TDS correction is, and why "revised return" is a loose term
When you file Form 26Q, TRACES issues a provisional receipt number (also called the token
number). Every later fix attaches to that number. A correction statement replaces the data you
got wrong in that statement and nothing else, so you can submit one more than once if the first
pass leaves errors behind.
Under the Income-tax Act, 2025, which applies from 1 April 2026, the statement forms were
renumbered. One published summary lists 24Q as Form 138, 26Q as Form 140, 27Q as Form 144 and
27EQ as Form 143, filed under Section 397(3)(b) with Rule 219 of the Income-tax Rules, 2026. For
FY 2025-26 and earlier, the old form names continue. Check the form-type dropdown on TRACES when
you start, because that is what the portal will actually show.
Which errors need a correction
Start from the default or mismatch you see, then pick the route.
| What went wrong |
What it causes |
Correction route |
|
Wrong BSR code, challan serial number, date or amount in the statement
|
Challan does not match payment records, so a short-payment default appears
|
Online challan correction on TRACES |
| Missing or invalid deductee PAN |
Higher-rate deduction under Section 206AA (20%) and missing credit in the
deductee's Form 26AS
|
Online PAN correction (DSC needed) |
|
Wrong deductor name, address or other personal information
|
Mismatch in records and certificates |
Online personal-information correction (DSC needed) |
|
Wrong deductee amounts, rows to add or delete, wrong section codes
|
Short deduction or wrong credit |
Offline correction using the Conso file |
| Tax deposited late |
Interest under Section 201(1A) |
Pay interest by challan, then show it in a correction |
| Statement filed after the due date |
Late fee under Section 234E |
Pay the fee by challan |
Challan and PAN corrections are what a deductor needs in most cases, which is why the next
section focuses on the online route.
Before you start: what to keep ready
The TAN login for TRACES (admin user, or a sub-user who submits to the
admin).
The financial year, quarter and form type of the statement.
The token number of the statement to correct. If you filed several, use the one
that TRACES shows as the latest processed.
Your challan counterfoil (CIN with BSR code, serial number, date, amount).
Your DSC, if you plan to fix PAN or personal information.
The Justification Report for the statement, so you know which defaults you are
chasing.
Online correction on TRACES, step by step
Online correction works for Forms 24Q, 26Q, 27Q and 27EQ.
1
Log in
Log in to TRACES as a deductor using your TAN.
2
Request for Correction
Open Request for Correction.
3
Enter statement details
Select the financial year, form type, quarter and enter the token number.
4
Set category to Online
Set the correction category to Online and submit the request. The status starts as
Initiated.
5
Wait for "Available"
Wait for the status to change to Available. That means TDS CPC accepted the request and
the statement can be edited.
6
Make the edits
Choose the correction type you need and make the edits (the two common cases follow
below).
7
Submit Correction Statement
Click Submit Correction Statement. If you are a sub-user, the statement goes to your
admin user first, shown as "Submitted to Admin User."
8
Track the result
"Processed" means TDS CPC has run the statement. "Rejected" means it did not go through
and you must resubmit.
Challan correction
Open the challan correction option and match the entries against the counterfoil. The fields to
check are BSR code, challan serial number, deposit date and amount. A one-digit slip in the
serial number is enough to cause an unmatched-challan default. No DSC is needed for this one.
PAN and deductee-detail correction
Pick the PAN correction type and replace the invalid entries. A PAN that is invalid can be
updated with a valid PAN but not with another invalid one. If the PAN correction tab is not
visible, cancel the online request and submit it again. You will need your DSC for this and for
personal-information fixes.
Offline correction using the Conso file (Form 26Q correction filing)
Some corrections cannot be made online, such as adding deductee rows or changing amounts and
section codes across many entries. For these, you work with a file instead of the portal
screen.
1
Request the Conso file for the statement from TRACES once it is processed.
2
Open it in the Return Preparation Utility, make the changes, and mark the statement as a
correction using the original token number.
3
Run the output through the File Validation Utility to generate the validated file.
4
Upload it through the income tax e-filing portal or via a TIN facilitation centre, with
your DSC where required.
5
Note the new token number for the correction. It is different from the original.
The main
risk offline is that a stale Conso file undoes an earlier correction. Always download a fresh one
before you begin.
Clearing the defaults that sit behind a correction
A correction fixes the data. The money side is separate, and it is where deductors tend to get
stuck.
Interest. Under Section 201(1A), tax that was deductible but not
deducted attracts 1% a month, counted from the date it should have been deducted to
the date it actually was. Tax deducted but not deposited attracts 1.5% a month, from
deduction to deposit. A part of a month counts as a full month.
Late filing fee. Under Section 234E, you owe ₹200 per day for the
delay in filing the statement, but the total cannot exceed the TDS amount in that
statement. This fee is separate from penalty provisions under Section 271H.
Penalty. Section 271H allows a penalty between ₹10,000 and
₹1,00,000 where a statement is not filed in time or contains wrong information.
Broadly, it is avoided when the tax, interest and late fee are paid and the correct
statement is filed within a year of the due date. Confirm the current wording of the
section for your case.
How to pay. Interest and fees go in through Challan ITNS 281. If
the dues were raised by the department as a demand, the payment goes under the
regular-assessment head (400). If you are paying voluntarily on your own, it goes
under the TDS-payable-by-taxpayer head (200). After paying, you file a correction
statement that reports the new challan, or add it as a fresh challan on the
original statement.
Check progress. Download the Justification Report on TRACES after
the correction is processed. If the default is still showing, the usual causes are a
challan that does not yet appear in the payment records, an amount that falls short
of the interest, or a mismatch in the BSR code.
Time limits and form numbers to watch
The correction window is now limited. From 1 April 2025, a correction statement cannot be filed
after the end of six years from the financial year in which the statement was due. Older
statements need a different approach, usually a written application to the Assessing Officer.
If you are correcting FY 2025-26 data, work with the 26Q-style forms. From Tax Year 2026-27,
statements for the second quarter were due on 31 October 2026 under the new numbering (Form 140
for non-salary payments to residents). Correct earlier quarters before you file the next one,
since errors carried forward can multiply the defaults.
Common reasons a correction fails
These follow from how the process works, not from any published statistics:
The token number you entered belongs to a different statement or quarter.
Online correction was requested on a paper statement.
The challan details you typed do not match the payment records.
A PAN replaced with another invalid PAN.
The statement stayed with a sub-user and never reached the admin user.
An earlier correction was still being processed when you submitted another.
When a request is rejected, read the rejection reason on TRACES, fix that one point and
resubmit. The statement remains available for correction.
How LegalDev can help
If you would rather not work through TRACES yourself, the LegalDev Tax Team prepares the fix end
to end: reading your Justification Report, identifying which errors need online or offline
correction, preparing the correction statement, and checking that the default clears after
processing. We also advise on how interest and late fees should be paid. Send us your TAN, the
quarter and the default notice, and we will tell you the route and the steps. Our team's
background is Indian corporate tax compliance and TRACES portal management.
Frequently asked questions
No. A filed TDS statement is fixed by a correction statement against its token
number. "Revised TDS return filing" is the phrase people search for, but the portal
calls it a correction.
More than once. A correction can be filed again if the first leaves errors behind,
within the six-year limit.
Not for challan correction. TRACES guidance summarized by tax-education sites says a
DSC is required for PAN and personal-information corrections. Check the current
requirement for your category on the portal.
No. Online correction is not available for statements filed on paper.
TDS CPC accepted the correction request, and the statement is open for edits.
It goes to TDS CPC for processing. You see Processed or Rejected. If you are a
sub-user, it first goes to your admin user for submission.
Yes. A correction statement can be filed within six years from the end of the
financial year in which the original was due, under a change effective 1 April 2025.
No. The fee is for delay in filing the original statement, and a correction does not
undo it. You pay it by challan.
1.5% per month from the date of deduction to the date of deposit. Late deduction
attracts 1% per month.
You first need to register or reset access using your TAN. Then request correction.
A professional can act for you, but the TAN holder must authorize it.