17 September 2012
Dear Sir, Kindly clarify one issue related to TDS. I have deducted TDS under 194 c ( contract ) @ 1 % on monthly basis on payment of RS 30,000/- p m from April 2012 till Aug 2012. Now it was found that it is not a contractual payment it should be a professional fee (194 J) and I have to deduct @ 10 % from retrospectively & paid it to Gov along with interest. Now my Query is Can i take the benefit of 1% TDS already deducted and paid on under the head contract to Govt and only deduct remaining remaining 9 % on all previous payment and paid to Govt along with interest and or forgane the whole TDS paid under@ 1% rate & deduct 10% retrospectivly accordingly revise the 1st Qtr return. Kindly resolve the issue. Thanking you
20 September 2012
Thanks Sir for reply, but in our case our TDS AO is in different state so i will request through letter. After above can I request for Change of TDS Circle address.
25 July 2025
Here’s a clear approach based on your TDS query:
1. Can you adjust 1% TDS already paid under Section 194C against the 10% due under 194J? Yes, the 1% already deducted and deposited under 194C can be treated as part payment towards your total TDS liability under 194J.
You must pay the remaining 9% TDS along with applicable interest for late payment.
2. Procedure to follow: Write a letter to your Assessing Officer (AO) explaining the mistake (wrong section), reasons for change, and request correction in challan details from 194C to 194J.
Revise your TDS returns (download consolidated FVU file) reflecting the correct section (194J) and adjusted TDS amounts.
Pay the remaining TDS + interest before filing the revised return.
3. Should you wait for AO’s approval before revising return? Ideally, try to meet AO or his subordinate to explain and get approval or acknowledgment before revising returns.
But if AO is in a different state, send the letter explaining the issue and wait for their reply.
You can proceed with revision after receiving acknowledgment or within a reasonable time frame to avoid penalties.
4. Regarding change of TDS Circle address: You can request change of TDS circle address separately with proper reasons.
This is independent of the above correction but should be done officially through a letter/application to the AO.
Summary: Pay remaining 9% + interest.
Write letter to AO for correction of challan details.
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