26 July 2020
By mistake I have deducted TDS @ 10% u/s 194C which actually should be 1% . Now I am preparing TDS return where section and rate to be mentioned . Now what to do ? please suggest and thanks ..
26 July 2020
Hello, there are two options available.
A. If you have paid challan for 10% TDS - In this case, go ahead to file TDS return with 10% TDS amount. Enter correct amount on which TDS deducted and enter 10% TDS amount.
B. If you have not paid challan for 10% TDS - 1. You may adjust excess TDS of 9% in next payment to creditor if you expect the creditor to be continuing. And file TDS return with 1% TDS normally.
2. If creditor is one time and no future transaction is expected with creditor, then pay the 10% TDS and show it as excess deducted in TDS return as explained in option A.
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