Tds
This query is : Resolved
26 July 2011
i have received professional fees but unfortunately my tds was deducted and deposited u/s 194C instead of 194J. Please advise me.
CA Navin Jain
(Expert)
26 July 2011
in your case less tds has deducted, its not your fault, You need to file your ITR and claim your tds
26 July 2011
but sir now i am having tds certificate for 194C and is supposed to have tds certificate for 194J.
27 July 2025
You're absolutely right to be concerned. Here's a clear breakdown of your situation and what you can do:
---
## ✅ Situation Recap:
* You received **professional fees**, which falls under **Section 194J** (TDS @ 10%).
* But the **deductor wrongly deducted TDS under Section 194C** (works contract, TDS @ 1% or 2%).
* Your **Form 16A / TDS certificate** and **Form 26AS** now show deduction under **194C**, not 194J.
---
## ✅ Consequences:
1. **Lower TDS Rate**: If TDS under 194C was only 1–2%, but your income is taxable at a higher rate, you might owe more tax while filing your ITR.
2. **Mismatch with Nature of Income**: It could cause scrutiny or notices from the Income Tax Department, since professional income is expected under 194J.
3. **You are not at fault**: The mistake is by the **deductor**, not you.
---
## ✅ Your Options:
### 🔹 1. **Ask the Deductor to Correct the TDS Return (Preferred)**
Request the deductor to:
* **Revise the TDS return**,
* **Rectify the section from 194C to 194J**, and
* **Re-issue Form 16A** under the correct section.
📌 *They can do this through the TRACES portal.*
👉 **Why this matters**:
* It aligns with the true nature of payment.
* Prevents mismatch in reporting for both parties.
* You get proper credit under the correct head (professional fees).
---
### 🔹 2. **If Correction Is Not Possible or Deductor Refuses**
* **You can still claim the TDS** as per Form 26AS while filing your ITR, even if it's shown under 194C.
* Attach a note in your return (if asked or in response to a notice) explaining:
> "TDS deducted under incorrect section (194C) instead of 194J due to deductor’s error. Nature of payment is professional fees."
🧾 **Important**: Keep an email or written proof of your communication with the deductor for your records.
---
## ✅ Summary:
| Action Item | Status |
| ----------------------------------- | ----------- |
| TDS wrongly deducted under 194C | ✅ |
| Request deductor to revise return | ✅ Preferred |
| If not revised, claim in ITR anyway | ✅ Allowed |
| Maintain documentation | ✅ Important |
---
Let me know if you want a draft email to send to the deductor requesting correction.
---
## ✅ Situation Recap:
* You received **professional fees**, which falls under **Section 194J** (TDS @ 10%).
* But the **deductor wrongly deducted TDS under Section 194C** (works contract, TDS @ 1% or 2%).
* Your **Form 16A / TDS certificate** and **Form 26AS** now show deduction under **194C**, not 194J.
---
## ✅ Consequences:
1. **Lower TDS Rate**: If TDS under 194C was only 1–2%, but your income is taxable at a higher rate, you might owe more tax while filing your ITR.
2. **Mismatch with Nature of Income**: It could cause scrutiny or notices from the Income Tax Department, since professional income is expected under 194J.
3. **You are not at fault**: The mistake is by the **deductor**, not you.
---
## ✅ Your Options:
### 🔹 1. **Ask the Deductor to Correct the TDS Return (Preferred)**
Request the deductor to:
* **Revise the TDS return**,
* **Rectify the section from 194C to 194J**, and
* **Re-issue Form 16A** under the correct section.
📌 *They can do this through the TRACES portal.*
👉 **Why this matters**:
* It aligns with the true nature of payment.
* Prevents mismatch in reporting for both parties.
* You get proper credit under the correct head (professional fees).
---
### 🔹 2. **If Correction Is Not Possible or Deductor Refuses**
* **You can still claim the TDS** as per Form 26AS while filing your ITR, even if it's shown under 194C.
* Attach a note in your return (if asked or in response to a notice) explaining:
> "TDS deducted under incorrect section (194C) instead of 194J due to deductor’s error. Nature of payment is professional fees."
🧾 **Important**: Keep an email or written proof of your communication with the deductor for your records.
---
## ✅ Summary:
| Action Item | Status |
| ----------------------------------- | ----------- |
| TDS wrongly deducted under 194C | ✅ |
| Request deductor to revise return | ✅ Preferred |
| If not revised, claim in ITR anyway | ✅ Allowed |
| Maintain documentation | ✅ Important |
---
Let me know if you want a draft email to send to the deductor requesting correction.
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