(Q1.) What is a Demand Management Request functionality on TRACES?
- A Demand Management Request is a facility on TRACES that allows a Deductor/Collector to settle outstanding TDS/TCS demand by tagging available challan balance only in cases where filing a correction statement is time barred.
(Q2.) When is Demand Management permitted? - Demand Management requests are permitted only for statements where the submission of a correction statement is time barred. If correction filing is still allowed, Demand Management cannot be used.
Note:
Deductor/Collector can initiate the Demand Management request in the conditions below: - The selected statement should be filed and processed
- Outstanding default should exist on that selected statement
- Demand Management request should not be under process for the same selected statement
(Q3.) From where can I initiate a Demand Management Request? - After logging into TRACES as a Deductor/Collector and navigate to:
Defaults → Request for Demand Management
For detailed information please refer to the E-Tutorial regarding Demand Management. (Q4.) What user consent is mandatory to initiate Demand Management request? - Below are consent points the Deductor must agree that:
- Once a demand has been adjusted through a Demand Management Request, submission of Form 26A or 27BA for that financial year and Form type will no longer be permitted.
- Any challan amount applied towards a demand through this process will be treated as final. Kindly note that such amounts cannot be reversed once utilized.
- Justification report will no longer be accessible after the Demand Management Request has been processed.
- In cases where short deduction or short collection demands are resolved using the Demand Management Request, the corresponding credit of TDS/TCS will not be reflected in the deductee’s Form 26AS or Annual Tax Statement (ATS).
(Q5.) Can a Demand Management Request be raised for migrated statements?
- No. Demand Management Requests cannot be initiated for migrated statement which are not processed by CPC TDS.
(Q6.) Can multiple Demand Management Requests be raised for the same statement?
- No, A new request cannot be submitted, if a request for the same statement is already under process on TRACES.
(Q7.)What type of demands/defaults can be adjusted through Demand Management? - The below demands/defaults may be adjusted:
- Interest on Short Deduction/Payment
- Interest on Late Payment/Deduction (including additional interest)
- Late Filing Fee (including additional late fee)
- Interest under Section 220(2)
(Q8.) Can I submit Form 26A or 27BA after Demand Management?
- No. Once demand is adjusted through Demand Management, Form 26A or 27BA submission cannot be done for the same financial year and form type..
(Q9.)Will the deductee get TDS/TCS credit in Form 26AS or ATS?
- No. If short deduction or short collection demand is settled using Demand Management, credit of TDS/TCS will not reflect in the deductee’s Form 26AS / Annual Tax Statement (ATS).
(Q10.)Will a Justification Report be available after demand adjustment?
- No. After demand is adjusted using Demand Management, Justification Report will not be accessible.
(Q11.)Will any Justification Report generate on request submission? - Yes, upon submission of the Demand Management Request, a Justification Report will be automatically initiated for the corresponding statement and will be available for downloading by the Deductor / Collector for future reference.
- Note:
- If Justification Report request is already "Submitted", the same report will be available
- The Request for Justification report will be submitted only for the initial Demand Management request. For any subsequent Demand Management requests (second or later), the Request for Justification report will not be initiated.
(Q12.)Which challans can be used for demand adjustment? - Challans with the following status can be used:
- Matched (Minor Head 200/400)
(Q13.)Can challans from a different financial year be used?
- Yes. Challans from ±1 financial year of the selected statement can be used.
Example:
For demand of FY 2017-18, challans of FY 2016-17, 2017-18, and 2018-19 can be used. (Q14.)How can challans be searched? - Challans can be searched using:
- Period of Payment (Date From–To)
(Q15.) Can I tag multiple challans in the same request of Demand Management?
- Yes, multiple challans can be tagged in a same request of Demand Management
(Q16.) Can BIN be tagged through Demand Management request?
- No, BIN cannot be tagged through Demand Management request. Deductor/Collector needs to contact Jurisdiction Assessing Officer.
(Q17.) Can the tagged amount exceed the default amount?
- No, Amount tagging cannot exceed the available default amount, except in cases of Interest under Section 220(2).
(Q18.) Can the request be cancelled after submission?
- Yes. Requests with status "Submitted" can be cancelled by the Deductor/Collector before processing.
(Q19.) How can I track my Demand Management Request? - After logging into TRACES Go to Defaults Tab → Track Demand Management Request
- Below are the Search options:
(Q20.) What are the possible request statuses? - Below are the request statuses:
(Q21.) Will I receive any communication after submission?
- Yes. Email alerts will be sent on submission. Email and SMS alerts will be sent on successful full or partial adjustment.
(Q22.) What can be done if demand is only partially adjusted? - If entire demand is not liquidated:
- A Revised Intimation of default will be issued
- Updated default summary will be available on TRACES
(Q23.) Can challan consumption be reversed after adjustment?
- No. Once challan amount is consumed through Demand Management, it is final and irreversible.
