tds query urgent
This query is : Resolved
29 April 2011
DEAR EXPERTS,
IF WE DEDUCT A CLIENT TDS ON PROFESSIONAL SERVICES(194J)(RS.20000/-) IN IIIRD QUARTER, BUT ACTUALLY IT WAS WRONGLY DEDUCTED ACTUALLY IT WAS EARNEST MONEY DEPOSIT(RS.2,00,000/-),
NOW IN THE FOURTH QUARTER WE HAVE TAKEN SERVICES FROM THEM Rs. 1,50,000/- IN WHICH TDS IS APPLICABLE Rs. 15000/-, CAN WE ADJUST THE SAME AMOUNT (20000/-) AS WE EARLIER WRONGLY DEPOSITED TO I.TAX DEPTT. WITH THIS FOURTH QUARTER TAX LIABILITY WHICH IS Rs. 15000/-, ALSO REPLY WHAT WILL BE THE TREATMENT OF REMAINING Rs. 5000/-(20000-15000).
THANKS,
NITIN BHATT
IF WE DEDUCT A CLIENT TDS ON PROFESSIONAL SERVICES(194J)(RS.20000/-) IN IIIRD QUARTER, BUT ACTUALLY IT WAS WRONGLY DEDUCTED ACTUALLY IT WAS EARNEST MONEY DEPOSIT(RS.2,00,000/-),
NOW IN THE FOURTH QUARTER WE HAVE TAKEN SERVICES FROM THEM Rs. 1,50,000/- IN WHICH TDS IS APPLICABLE Rs. 15000/-, CAN WE ADJUST THE SAME AMOUNT (20000/-) AS WE EARLIER WRONGLY DEPOSITED TO I.TAX DEPTT. WITH THIS FOURTH QUARTER TAX LIABILITY WHICH IS Rs. 15000/-, ALSO REPLY WHAT WILL BE THE TREATMENT OF REMAINING Rs. 5000/-(20000-15000).
THANKS,
NITIN BHATT
29 April 2011
You can revise your Q3 TDS return & show 20000/- payment of TDS as unadjusted.
With the same challan details, you can show the adjustment of 150000/- payment in Q4, Rest 5000/- will be shown as unadjusted & refundable in your Q4 etds return.
After the final assessment of your etds returns, you will get the refund of excess paid TDS.
With the same challan details, you can show the adjustment of 150000/- payment in Q4, Rest 5000/- will be shown as unadjusted & refundable in your Q4 etds return.
After the final assessment of your etds returns, you will get the refund of excess paid TDS.
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29 April 2011
Dear Subhash sir,
thanks for your valuable comments, i have one more query abour remaining part of tds rs.5000/- can v adjust the same amount with other client 194j tax liability for ivth quarter.(i.e we have tax liability of one client for the month of march is rs.5500/- can v adjust the amount rs.5000/- from this client & pay the tax only rs.500/-.
thanks,
nitin bhatt
thanks for your valuable comments, i have one more query abour remaining part of tds rs.5000/- can v adjust the same amount with other client 194j tax liability for ivth quarter.(i.e we have tax liability of one client for the month of march is rs.5500/- can v adjust the amount rs.5000/- from this client & pay the tax only rs.500/-.
thanks,
nitin bhatt
29 April 2011
Yes.. that's absolutely fine.....you can do that
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29 April 2011
nitin pls also reffer circular no 2/2011 dt 27/04/2011 for further clarification as it is a latest clarification issued
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12 May 2011
dear experts,
after preparing correction statement of IIIrd quarter , i have deleted the row of the respective deductee(Rs.20 k) in Sheet deductee details & in the sheet of " challan details" i have not made any changes while after verifying the sheet i found following errors in "TDS STATEMENT STATISTICS REPORT".
TDS/TCS - ERROR FILE
Line No Record Type Statement Type Field Name Challan Details Record Number Deductee/ Salary Detail No. Error Code & Description
3 Challan C3 - Deductee Correction Section / Collection Code 6 - T-FV-3043 Invalid Section / Collection Code
after preparing correction statement of IIIrd quarter , i have deleted the row of the respective deductee(Rs.20 k) in Sheet deductee details & in the sheet of " challan details" i have not made any changes while after verifying the sheet i found following errors in "TDS STATEMENT STATISTICS REPORT".
TDS/TCS - ERROR FILE
Line No Record Type Statement Type Field Name Challan Details Record Number Deductee/ Salary Detail No. Error Code & Description
3 Challan C3 - Deductee Correction Section / Collection Code 6 - T-FV-3043 Invalid Section / Collection Code
28 July 2025
Here’s a clear explanation and solution for your situation:
---
### Situation Recap:
* You **wrongly deducted and deposited TDS of Rs. 20,000** in Q3 (on earnest money, which is not taxable).
* In Q4, you have a **legitimate TDS liability of Rs. 15,000** on professional services.
* You want to **adjust the excess Rs. 5,000 from Q3 against Q4 liability or other clients**.
* You deleted the deductee row in Q3 correction statement but **did not update challan details**, and got the error:
> **T-FV3043 Invalid Section / Collection Code**
---
### How to handle this correctly:
1. **About Adjusting Excess TDS (Rs. 5,000) in Q4:**
* Yes, you **can adjust the Rs. 5,000 excess TDS paid in Q3 against the Q4 liability**, even for a different deductee under the same section (194J).
* This is allowed as per CBDT Circular No. 2/2011 dated 27/04/2011.
2. **Filing Correction Statement for Q3:**
* Since Rs. 20,000 was wrongly deducted, you **should file a correction return for Q3** where:
* You **remove the incorrect deductee entry of Rs. 20,000** (which you already did).
* **Update the challan details properly** — challan section code must match the nature of TDS deducted (for 194J, section code 194J must be entered).
* **Do NOT delete or leave the challan details inconsistent.** If you remove the deductee but keep the challan entry as before without correction, the software throws the error **T-FV3043 Invalid Section / Collection Code** because the challan and deductee details are mismatched.
3. **Correcting the Challan Details:**
* While deleting the deductee row, you must also **update or delete the corresponding challan entry in the challan sheet** if it pertains solely to that deductee.
* Or, if the challan was used for multiple deductees, **adjust the challan amount and ensure the correct section/collection code (194J) is entered**.
* In your case, since the TDS was wrongly deducted under 194J but should have been zero for earnest money, you may mark the challan as "Unadjusted" in the correction statement and carry it forward.
4. **Reporting in Q4 Return:**
* In Q4, you report the actual TDS liability of Rs. 15,000 and pay the net amount after adjusting the Rs. 5,000 excess.
* The unadjusted Rs. 5,000 from Q3 appears as "excess payment" and will be refunded after processing or can be adjusted against other liabilities.
---
### Steps to fix your error:
1. **Open your Q3 correction return file in RPU.**
2. In **Deductee details sheet:**
* Delete the row for Rs. 20,000 wrongly deducted.
3. In **Challan details sheet:**
* Either delete the challan corresponding to Rs. 20,000 if it only applies to the deleted deductee.
* Or adjust the challan amount and ensure the **section code is 194J** and data matches the deductee details.
4. Validate the file — no errors should appear.
5. File the corrected Q3 return.
6. In Q4 return, report actual TDS and adjust the Rs. 5,000 excess as unadjusted or carry forward.
---
### Summary
* The error **T-FV3043** is because the **Challan section code or challan details do not match the Deductee details after deletion**.
* Make sure challan details are consistent with deductee details in correction statements.
* You can adjust excess TDS paid in one quarter against liability in another, but your return filing must be consistent and error-free.
---
If you want, I can help you prepare or validate the correction file step-by-step! Would you like that?
---
### Situation Recap:
* You **wrongly deducted and deposited TDS of Rs. 20,000** in Q3 (on earnest money, which is not taxable).
* In Q4, you have a **legitimate TDS liability of Rs. 15,000** on professional services.
* You want to **adjust the excess Rs. 5,000 from Q3 against Q4 liability or other clients**.
* You deleted the deductee row in Q3 correction statement but **did not update challan details**, and got the error:
> **T-FV3043 Invalid Section / Collection Code**
---
### How to handle this correctly:
1. **About Adjusting Excess TDS (Rs. 5,000) in Q4:**
* Yes, you **can adjust the Rs. 5,000 excess TDS paid in Q3 against the Q4 liability**, even for a different deductee under the same section (194J).
* This is allowed as per CBDT Circular No. 2/2011 dated 27/04/2011.
2. **Filing Correction Statement for Q3:**
* Since Rs. 20,000 was wrongly deducted, you **should file a correction return for Q3** where:
* You **remove the incorrect deductee entry of Rs. 20,000** (which you already did).
* **Update the challan details properly** — challan section code must match the nature of TDS deducted (for 194J, section code 194J must be entered).
* **Do NOT delete or leave the challan details inconsistent.** If you remove the deductee but keep the challan entry as before without correction, the software throws the error **T-FV3043 Invalid Section / Collection Code** because the challan and deductee details are mismatched.
3. **Correcting the Challan Details:**
* While deleting the deductee row, you must also **update or delete the corresponding challan entry in the challan sheet** if it pertains solely to that deductee.
* Or, if the challan was used for multiple deductees, **adjust the challan amount and ensure the correct section/collection code (194J) is entered**.
* In your case, since the TDS was wrongly deducted under 194J but should have been zero for earnest money, you may mark the challan as "Unadjusted" in the correction statement and carry it forward.
4. **Reporting in Q4 Return:**
* In Q4, you report the actual TDS liability of Rs. 15,000 and pay the net amount after adjusting the Rs. 5,000 excess.
* The unadjusted Rs. 5,000 from Q3 appears as "excess payment" and will be refunded after processing or can be adjusted against other liabilities.
---
### Steps to fix your error:
1. **Open your Q3 correction return file in RPU.**
2. In **Deductee details sheet:**
* Delete the row for Rs. 20,000 wrongly deducted.
3. In **Challan details sheet:**
* Either delete the challan corresponding to Rs. 20,000 if it only applies to the deleted deductee.
* Or adjust the challan amount and ensure the **section code is 194J** and data matches the deductee details.
4. Validate the file — no errors should appear.
5. File the corrected Q3 return.
6. In Q4 return, report actual TDS and adjust the Rs. 5,000 excess as unadjusted or carry forward.
---
### Summary
* The error **T-FV3043** is because the **Challan section code or challan details do not match the Deductee details after deletion**.
* Make sure challan details are consistent with deductee details in correction statements.
* You can adjust excess TDS paid in one quarter against liability in another, but your return filing must be consistent and error-free.
---
If you want, I can help you prepare or validate the correction file step-by-step! Would you like that?
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