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Overpaid tds under 94j

Vivek Rawal (director) (45 Points)

31 March 2015

Finance officer of our company made a mistake of paying Rs. 220000 as TDS under 94J instead of Rs. 22000. The payment was done through netbanking. Now what is the corrective action possible? We are very troubled with this mistake. Any guidance or advice will be greatly appreciated.

Thanks very much.

Vivek

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9 Replies

Ellaiah Vinod D (Finance Manager) (27 Points)
Replied 31 March 2015

Hi if it is same quarter the excess amount keep carry forward, you can adjust with subsequent month against any other professional or consultants charges. Ellaiah Vinod.D

1 Like

Vivek Rawal (director) (45 Points)
Replied 31 March 2015

As the quarter is ending today on March 31st and there is no more dues, the adjustment you mentioned is not possible. Also its a very large amount and we do not usually have such large TDS even in the whole financial year. Any advice on how correction can be made with IT department for such a mistake. Thanks.

J. K. Ratan (Compliance Advisor) (794 Points)
Replied 31 March 2015

Dear Sir

It's Genuine mistake and could be ratified. Write a request letter on Letter Head to Income Tax CPC and give the full disclosure of the matter. Attach the all documentary evidence alongwith Request letter.

Visit your concern ward with all documents.

For further assistance call on this Toll Free No. 0120-4814600

1 Like

Vivek Rawal (director) (45 Points)
Replied 31 March 2015

We tried calling this phone number and we were directed to NSDL. NSDL guided us to contact IT department's assessment officer. Yesterday, we spent half a day at IT department's office and there was no guidance on how can we rectify. We found a correction of challan option on 'traces' website but it is not functioning. So completely at loss on how do we ask to rectify this human mistake.

I hope there was clear guidance from IT department on rules and procedures for rectification of error.

Thanks very much for your kind attention.

Vivek

J. K. Ratan (Compliance Advisor) (794 Points)
Replied 31 March 2015

Dear Vivek

Need not to worry about this. You have two options

Option 1 :- You could utilised the excess amout paid by you within the one year starting from The date of payment. and against the last years dues starting from the date of payment.

Option 2 :- Go through the lenthy process i.e visit your concern ward at TDS CPC vaishali provide the all related document for claim refund.

Note:- Recentely TDS CPC has stoped to accept the online TDS Refund claim but still there is chances to receive any solution for this critical situation.

1 Like

Vivek Rawal (director) (45 Points)
Replied 31 March 2015

Thank you Mr. Ratan.

I do not think we have Option 1, as even in next one year we will not be able to adjust such a large amount as TDS under 94 J. So I think we have to go through Option 2. We will be thankful if you could provide guidance on what all documents to be enclosed with letter. We have challan of TDS and other documents like PAN, company registration documents MoA, etc. Also past audited financial statements and annual IT returns.

Thanks,

Vivek

J. K. Ratan (Compliance Advisor) (794 Points)
Replied 31 March 2015

Dear Sir

You Need to Provide the following Doduments......

1. TDS Challan

2. Bill of Services Received

3. Payment Detail to Service Provider (Bank Statement)

4. PAN of Company

5. TAN of Company

These documents should be enclosed with request letter.

Vivek Venkataram (Just cleared CS(441/800) now C.A Final Attempt in May 2015) (772 Points)
Replied 31 March 2015

Its an extremely tedious process.. best of luck

Sriram (CMA Final) (178 Points)
Replied 04 April 2015

Its not that you have to adjust it under 194J, you can adjust for other sections also.

Section quoted in Challan, at the time of depositing Tax deducted/ collected is irrelevant for the purpose of consumption in TDS Statement. you can adjust the excess amount in the TDS return. You can adjust the excess amount in next financial year also

please see the TDS-CPC link

https://contents.tdscpc.gov.in/en/tdscpc-communication69.H T M L

Hope this may slove your problem