How to Correct or Cancel
TDS Challan Online and Claim Refund

Quick Answer

You can correct a TDS challan online if details like TAN, assessment year, or amount are entered wrongly. Cancellation of TDS payment is not allowed, but excess or wrong TDS payment can be claimed as refundable through correction requests or while filing the income tax return.

Summary

Mistakes during TDS payment are more common than people think. Sometimes the wrong TAN is entered, the assessment year is selected incorrectly, or excess tax gets deposited. This guide explains how to correct TDS challan online, whether TDS payment can be cancelled, and how a refundable TDS amount can be claimed. You'll also learn the correction process, refund timeline, and common situations like salary, property purchase, or NRI payments. If you're worried about wrongly deposited TDS, this post will help you understand the correct procedure calmly 😊

Introduction

Paying TDS online is simple, but even a small error can create confusion later. Many deductors panic when they realise that a challan was paid with the wrong details. The good news is that most TDS challan mistakes can be corrected, and extra tax paid can usually be claimed back.

Let's understand what can be corrected, what cannot be cancelled, and how to recover your money step by step.

Can TDS Payment Be Cancelled Online?

TDS payment once deposited cannot be cancelled online. After payment, the amount is credited to the government account. However, if the payment is wrong or excess, the amount does not get lost. It can either be corrected or claimed as refundable.

Common Reasons for Wrong TDS Challan Payment

• Incorrect TAN entered
• Wrong assessment year selected
• Incorrect section or nature of payment
• Duplicate TDS payment
• Excess amount deposited

How to Correct TDS Challan Online

TDS challan correction can be done through the bank or the NSDL system, depending on how old the challan is. Corrections usually allowed include TAN, assessment year, nature of payment, and amount split.

1. Identify the challan details
2. Approach the bank (for recent challans)
3. Use NSDL challan correction request
4. Submit required documents
5. Track correction status

What Is Refundable TDS?

Refundable TDS means the excess tax paid to the Income Tax Department that is more than your actual tax liability. This amount can be claimed back while filing the income tax return.

How to Claim Refund of Wrong or Excess TDS

If TDS is deposited wrongly or in excess, the refund is generally claimed through ITR filing. The refund is processed after verification and credited directly to the bank account.

• Check Form 26AS
• File income tax return correctly
• Claim refund of excess TDS
• Track refund status online

Special Cases: Salary, Property, and NRI TDS

In salary TDS, correction is usually done by the employer. For property purchase (Form 26QB), correction requests can be submitted online. In NRI cases, excess deduction can be claimed while filing return based on actual tax payable.

Advantages of Correcting TDS Challan on Time

Correcting TDS challan details early helps avoid mismatch in Form 26AS, ensures smooth return filing, and speeds up refund processing.

Why TDS Correction and Refund Matters

Timely correction and refund claim ensures your money is not blocked unnecessarily and prevents issues during assessment or future filings.

Limitations and Practical Challenges

Correction may take time and requires proper documents. In some cases, multiple follow-ups may be needed before the refund is received.

Official and Helpful External Resources

For correct information and secure processing, always rely on official portals while correcting TDS challan details or claiming refunds. The links below are reliable and commonly used for TDS-related services.

• Income Tax e-Pay Tax Portal - Official portal for tax payments, challan details, refund status, and income tax services.
• NSDL TIN Services - Used for challan verification, TAN-related services, and correction tracking.
• Income Tax Department - TDS/TCS - Government guidance on TDS rules, payment, and correction procedures.
• Wikipedia - Tax Deducted at Source - General explanation of how TDS works in India.

🔗 Related Topics:

• TDS Online Payment & Challan 281 Guide
• TDS and TCS Rate Chart FY 2025-26
• Cancel TDS Service TAN Surrender Guide
• Income Tax Slab FY 2025-26

Conclusion

Mistakes in TDS payment are stressful, but they are manageable. While TDS payment cannot be cancelled, corrections and refunds are possible through the proper process. By checking challan details, filing returns carefully, and tracking refund status, you can recover wrongly deposited TDS smoothly and stay worry-free 😊

Frequently Asked Questions (FAQs)