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Tds payment correction

Mridul Sen (Student CA IPC / IPCC) (27 Points)

22 June 2015

Hello All,

The question is we have deducted tax u/s 94C & u/s 94I but at the time of payment the entire amount is paid u/s 94C.

Please give the steps to correct this and whether any interest is payable or not?

Thanks in Advance

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8 Replies

Deepak sharma (Learner) (1431 Points)
Replied 22 June 2015

/forum/wrong-code-done-in-tds-challan-329972.asp

1 Like

Rashi Bajaj (CA) (752 Points)
Replied 22 June 2015

You may correct the same while filing TDS Return by entering correct section against the amount while giving the reference to the same challan. No interest is payable for such error.

2 Like

Sonakshi Mangla (Employee) (310 Points)
Replied 22 June 2015

While preparing the return mention the section as 194C in challan details but in dedcutee details mention the corerct details (i mean corerct section under which tds has been deducted ) & adjust those deductee against the mentioned challan. You wont face any issue from TDS CPC & the return will be processed without any error. No need to worry.. !!!

1 Like

AJEET MAURYA (article) (32 Points)
Replied 23 June 2015

This is normal mistake done by deductor which TDS CPC dept. assume. Hence no need to make correction in chalan. Just select correct section agnst such chalan while filing tds return.

prashanth (bangalore) (28 Points)
Replied 23 June 2015

Sir Actually my question is c 194i is rent if u crossed 180000 u have to deduct 10% BUT 194C IS CONTRACT it's applicable only 1% or 2 % depanadpon case in ur problem u made all payment through 194C than now if u changed section than rate of percentage is differ na than how ul August sir...?

prashanth (bangalore) (28 Points)
Replied 23 June 2015

Mohammad saifee (Entrepreneur ) (72 Points)
Replied 23 June 2015

Dear prasanth, if i understand your question correctly, then pay another challan for difference amount of amount deducted on rent transaction and amount to be deducted u/s 194i.

Rashi Bajaj (CA) (752 Points)
Replied 24 June 2015

Prashanth, If you have deducted AND PAID tds on rent @ 1% only, then you need to fulfill the compliance in respect of the ther 9%. However, if amount calculated is @ 10% and included along with contract TDS @ 1%, then it is merely a challan entry error that can be corrected while filing returns.