Amendment to Sec. 200A regarding Processing of statements of tax deducted at source [Sec. 200A]

Currently, almost all statements of tax deducted at source

are filed in an electronic mode. The processing of these

statements should, therefore, be done only in a computerized

environment. Section 200A has been inserted for this
purpose with effect from April 1, 2010 to provide for
processing of statements of tax deducted at source on
computer so that liabilities on account of interest and
other defaults in TDS payment are promptly calculated
and intimated to the deductor.The following adjustments
can be made during the computerized processing
of statements of tax deducted at source:

a. any arithmetical error in the statement; or
b. an incorrect claim, if such incorrect claim is apparent
    from any information in the statement, for example, in
    respect of rate of deduction of tax at source where such
    rate is not in accordance with the provisions of the Act.
   After making adjustments, tax and interest [e.g., under section
   201(1A)] would be calculated and sum payable by the deductor
   or refund due to the deductor will be determined. An intimation
   will be sent to the deductor informing him of his tax liability or
   granting him the refund due within one year from the end of the
   financial year in which the statement is filed. Further, it is
   provided that the processing of these statements can be
   undertaken in a centralized processing centre.