Introduction:
The outstanding TDS demand can be classified under various categories on the basis of immediate liquidation and prioritization. The outstanding TDS demand which are recoverable immediately and free from any dispute or litigation or corrections can be clubbed the category “resolvable demand”. Resolvable demands include the following:-

(i) Short payment
(ii) Interest on short payment
(iii) Interest on late payment
(iv) Late filing fees

Besides, there are other TDS liabilities like short deduction, interest on short deduction, penalty u/s 221 of the Income-tax Act, 1961, penalty u/s 271C of the Act etc. which are disputed by the deductors either by way of appeals or by way of filing correction statements. Accordingly, the resolvable TDS demand can be liquidated immediately and recovery of resolvable demand has been accorded top priority by the Board

Standard Operating Procedure (SOP) defining the roles of different TDS Authorities in addressing the issue of relsolvable/collectible TDS demand

(I) Role of Principal CCIT/CCIT(TDS):-
(i) Interacting with the CIT(TDS) under his jurisdiction on a regular basis and monitor the progress of collection/resolution of resolvable/collectible demand.
(ii) Apprising the Zonal Member/Member(R) of the progress and result through monthly D.O. by 10th of the following month and a copy of the D.O. shall also be sent to Principal DGIT(Admn.).

(II) Role of CIT(TDS):-
(i) Monitoring the progress on collectible/resolvable demand fortnightly and review TDS Range Heads under him.
(ii) Devising a strategy for follow-up action and to increase the pace of recovery, if any, required.
(iii) Conducting monthly meeting with deductors and their representatives in order to make them aware of the TDS defaults and help in collection / resolution of demand.
(iv) Ensuring that the CAP-I statement of TDS charges should be filled up on the basis of the information of total demand rolled out by the CPC-TDS.
(v) Apprising the result of the recovery process to the CCIT/DGIT by the 7th of the following month.
(vi) Apprising the progress on resolvable demand to the DIT(TDS), New Delhi alongwith MIS report.

(III) Role of Addl.CIT(TDS):-
(i) Identifying resolvable demand to be recovered immediately after discussion with all the Assessing Officers.
(ii) Holding weekly review meeting with Assessing Officers.
(iii) Apprising the CIT(TDS) of the outcome of such review meeting.
(iv) Preparing the CAP-I of TDS taking the total demand informed by CPC-TDS as the basis.
(v) Sending the progress in this area in the monthly D.O. to the CIT and also to be included in the MIS which is to be send to DIT(TDS), New Delhi.
(vi) Planning out any survey for recovery or resolution of such resolvable demand, if necessary.

(VI) Role of AO – TDS:
(i) Preparing the CAP-I of TDS taking the total demand informed by CPC-TDS as the basis.
(ii) Uploading manual demand on the System on priority.
(iii) Identifying the resolvable demand due to short payment, interest on short payment interest on late payment and late filing fee and take prompt action for their recovery.
(iv) Issuing letters requiring the assessee to file correction statement/revised statement with TRACES if demand is due to mismatch of challans, wrong PAN or any other reason and provide the latest position of demand as per TRACES.
(v) Monitoring/follow-up the matter with the assessee.
(vi) Coordinating with CPC - TDS in case of difficulty faced by the assessee.
(vii) Considering resolvable/collectible demand also while issuing certificate u/s 197 of the Act.
(viii) Taking recovery measures, if no action is taken by the assessee in respect of resolvable/ collectible demand, so that the demand is reduced to Nil.
(ix) Asking the Inspector to follow up these cases.
(x) Looking into book entry transactions by government organizations and see whether TDS has been deducted and deposited.
(xi) Apprising the Addl. CIT(TDS) of the progress made by the 3rd of every month.

(V) Role of CIT(CPC-TDS), Ghaziabad:-
(i) Disseminating the details of the resolvable/collectible demand at the A.O. portal under TRACES which shall be available to CIT(TDS)/Addl.CIT/ and the A.Os.
(ii) Disseminating the details of resolvable demand in the form of DVD/Soft Copy to each CIT(TDS) for his jurisdiction.
(iii) Aggregating the progress made in this area for each CIT(TDS) jurisdiction fortnightly on the A.O. portal.
(iv) Making a quarterly review on the progress and provide critical inputs feedback from the next quarter.
(v) Disseminating any other relevant information periodically or as and when required on the recovery of the resolvable/collectible demand through TRACES or through separate communication.
(vi) Making available the functionality of seeing the break-up of resolvable demand at all administrative levels.
(vii) Updating the resolvable demands after filing of correction statements should be made fast-track.
(viii) Enabling, the AO – TDS and Addl. CIT(TDS) to see refund on TRACES, if any, of assessee deductor under different TAN or PAN, so that the same may be considered for adjustment after due verification of nature of resolvable/collectible demand.