TDS Software | TDS Challan Reconciliation

Challans matched to deductions, every challan, every period.

Bank challan paid, CIN captured, reconciled against the deduction register at the line level. Variances (wrong section, wrong amount, missing deduction) surface before the return is drafted, not after the notice arrives.

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How it works

From challan to reconciled deduction.

Step 01

CIN captured at payment

Bank Connected Banking returns CIN automatically. Posted to the deduction register against the section + period.

Step 02

Match at the line

Each deduction line in the period matches against the paid challan amount. Sum-of-deductions = challan amount within tolerance.

Step 03

Variances surfaced

Where the sum of deductions doesn't match the challan (wrong amount paid, missed deduction, duplicate), variances surface for review.

Step 04

Pre-return reconciliation

Before drafting 24Q/26Q/27Q, the challan reconciliation must be clean. The system enforces this gate.

What the system does

Capability, input, output.

Capability	Input	Output
CIN capture	Bank payment response	CIN posted to deduction register
Sum-of-deductions match	Period + section deductions vs challan amount	Match status with tolerance
Variance dashboard	Unmatched deductions / challans	Variance drill to source bill
Pre-return gate	Match status	Block 24Q/26Q draft until clean

CIN capture

Input

Bank payment response

Output

CIN posted to deduction register
Sum-of-deductions match

Input

Period + section deductions vs challan amount

Output

Match status with tolerance
Variance dashboard

Input

Unmatched deductions / challans

Output

Variance drill to source bill
Pre-return gate

Input

Match status

Output

Block 24Q/26Q draft until clean

Compliance + integrations

Reconciled before TRACES sees it.

Challan reconciliation done at the deduction level before quarterly return filing. Variances caught before they become TRACES mismatches and short-deduction notices.

Regulations we work within

Rule 31A

Quarterly return reflects challan-matched deductions.
Section 234E

Late-fee exposure surfaced where reconciliation reveals delay.

Connects to

NSDL Challan validation
TRACES Pre-filing reconciliation

TDS Challan Reconciliation FAQ

What buyers ask.

What kind of variances does the system catch?

Wrong amount paid (challan greater or less than sum of deductions), missed deduction (deduction in books but no matching challan line), duplicate deduction, wrong section on the challan, wrong PAN on the challan. Each surfaces with the source bill linked.

How is challan amount tolerance computed?

Default tolerance is ₹1 per challan (rounding off). Configurable per organisation. Tolerance applies on the sum-of-deductions vs challan check.

What if a challan is paid against the wrong section?

The system surfaces the wrong-section variance and provides a correction workflow: the challan can be revised through the bank, or a separate correction return drafted for filing.

Related features

Reconcile last quarter's challans on screen.

Connect one entity, free. Last quarter's challans match against the deductions in minutes. Variances surface; the next 24Q drafts cleanly.