notice regarding some less deduction in tds return

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Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2012 Hi,

I have submitted TDS Return for the first quarter 2010 (a.Y. 2011-12) and now we have recd.a notice from Income tax deptt that we have less dedutcted TDS from one of our service priveder. while checking our records we found that there was a service bill for Rs. 11030/- that was entered in our books in April 2010. but payment against the abovesaid bill was made to the service provider for Rs. 4420/- in April 2010 and for Rs. 6610/- in May. 2010. And we have deposited the TDS respectively Rs. 420/ -on 07/05/2010 and Rs. 661/- on 07/06/2010.
We are using Tally . ERP9, and at the filing of TDS of return in Annexure to form 26Q, the assessable value for Rs. 11030/- has been shown in April as well as Rs. 11030/- so in this way the assessable value of same bill has been shown twice.
Now please help us how to reply for the notice regarding Assessement for the return.

Should we submit revised return or is there any method to resolve the problem ?
Please help me.

Savita.

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2012 pleasde reply the abpve query related TDS return

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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14 July 2024 Based on the situation described, it appears that the TDS return filed for the first quarter of 2010 (AY 2011-12) has an error where the assessable value for a service bill of Rs. 11,030/- was inadvertently shown twice in the Annexure to Form 26Q. This resulted in the TDS deduction being reported incorrectly.

Here’s how you can proceed to resolve this issue:

1. **Understand the Notice**: Review the notice from the Income Tax Department carefully. It likely specifies the discrepancy in TDS deduction related to the service bill of Rs. 11,030/-.

2. **Correct Assessment**: The correct approach would be to rectify the mistake in the TDS return. Since the assessable value was mistakenly reported twice, leading to incorrect TDS deduction, you should prepare to submit a revised return to rectify this error.

3. **Prepare a Revised TDS Return**: In Tally.ERP9, you can prepare a revised TDS return (Form 26Q) for the relevant quarter (Q1 2010). Ensure the revised return reflects the correct assessable value and the corresponding TDS deducted (Rs. 420/- on 07/05/2010 and Rs. 661/- on 07/06/2010).

4. **Reply to the Notice**: Draft a response to the notice explaining the error and detailing the steps you have taken to rectify it. Include:
- Explanation of the mistake made in reporting the assessable value twice.
- Mention that a revised TDS return has been prepared and filed to correct the error.
- Provide details of the original return filed and the revised return filed subsequently.

5. **Submit the Revised Return**: File the revised TDS return using Tally.ERP9 or through the income tax department’s online portal, depending on the procedures applicable at the time.

6. **Document Everything**: Keep copies of all correspondence, the notice received, your response, and proof of filing the revised return for future reference.

7. **Seek Professional Advice if Needed**: If you are unsure about how to proceed or need assistance in preparing the revised return and drafting the response to the notice, consider consulting a tax professional or chartered accountant who can provide guidance specific to your situation.

By following these steps, you can effectively address the notice from the Income Tax Department regarding the incorrect TDS deduction and ensure compliance with tax regulations.

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