Correction of arithmetic mistakes and adjustment of incorrect claim during computerized processing of TDS statements [Section 200A] under Miscellaneous Provisions :

(1) At present, all statements of tax deducted at source are filed in an electronic mode, thereby facilitating computerised processing of these statements.

(2) Therefore, in order to process TDS statements on computer, electronic processing on the same lines as processing of income-tax returns has been provided in section 200A with effect from 1st April, 2010.

(3) The following adjustments can be made during the computerized processing of statement of tax deducted at source or a correction statement –

(i) any arithmetical error in the statement; or

(ii) an incorrect claim, if such incorrect claim is apparent from any information in the statement.

The term “an incorrect claim apparent from any information in the statement” shall mean such claim on the basis of an entry, in the statement, –

(a) of an item, which is inconsistent with another entry of the same or some other item in such statement;

(b) in respect of rate of deduction of tax at source, where such rate is not in accordance with the provisions of the Act.

(4) The interest, if any, has to be computed on the basis of the sums deductible as computed in the statement;

(5) The fee, if any, has to be computed in accordance with the provision of section 234E.

(6) The sum payable by, or the amount of refund due to, the deductor has to be determined after adjustment of interest and fee against the amount paid under section 200 or section 201 or section 234E and any amount paid otherwise by way of tax or interest or fee.

(7) An intimation will be prepared and generated and sent to the deductor, specifying his tax liability or the refund due, within one year from the end of the financial year in which the statement is filed. The refund due shall be granted to the deductor.

(8) For this purpose, the CBDT is empowered to make a scheme for centralized processing of statements of TDS to determine the tax payable by, or refund due to, the deductor.