Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Tds paid under wrong section

Save Share

This query is : Resolved

YUSUF (Querist)

19 September 2011 THE ASSESSEE CO HAS DEDUCTED TAX IN ACCORDANCE WITH THE ACT @ 0.7 % INSTEAD OF 10% UNDER SECTION 194J UNDER LOWER DEDCUTION CERTIFICATE.
WHILE MAKING PAYMENT OF THE ABOVE TDS, THE AMOUNT WAS INCLUDED IN SECTION 194C,AND PAID WITHIN TIME

1.WHETHER ASSESS HAS TO PAY THE TDS AMOUNT AGAIN UNDER CORRECT SECTION AND CLAIM REFUND?
2.INTEREST TO BE CHARGED @ 1 % OR 1.5% OR NO INTEREST TO BE CHARGED AND FROM WHEN?

THANKS

Pragnesh

Pragnesh (Expert)

19 September 2011 Dear Member First you contact to your bank & follow as per NSDL new circular i.e. "New Procedure of Income Tax payment challan correction by banks" try to rectify the error. If bank is not ready for the same, then pay again balance TDS under 194J with interest. Interest will @1.50% on monthly basis. For Excess TDS, you should for refund else adjust in same finacial year under the same head.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now