Correction return (Income Tax)

This query is : Resolved

Baljeet Singh

( Author )
05 July 2012

Respected Experts,
I have filed the regular TDS return and deducted tds at 10%(194J) or 1%/2%(194C)of deductees. Some of deductees did not quote their PAN till the last date of filing TDS return, i therefore adjusted the amount of payment accordingly to show the 20% tax deduction
for example : A deductee was paid Rs. 25000 and tax deducted was @ 2 % is Rs.250/- as applicable, but the amount shown as paid in return is Rs.1250 \- and tax @ 20% is 250/-(as mandatory for deductees not Quoting PAN).
This is done to file the return on time.

Now, some of deductees have approached me with their PANs and requested me to revise the return and quote their PAN so that they may get TDS certificate which is now generated by TIN for Valid PANs.

In this regard i would like to know,

1. Can i change the Amount Paid to deductees in my correction Return (i.e Rs. 25000/- instead of wrong amount of Rs. 1250/-).

2. Can i change the Tax Flag 'C' (for higher deduction) in my correction return.

3. Finally if answer is yes to above points then what will be the consequences of correction return in terms of penalty, interest etc.

CA Urvish Sanghavi

( Expert )
06 July 2012

Sir,
You can Very well file a revised return stating the correct PAN.

As such at the time of filling the revised return of TDS, you don't have to worry about anything, just wait for the notice of the department, and then convince the department the facts of the case.