Tds return and rectification

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This query is : Resolved

ANSHU JAIN (Querist)

25 August 2014 I filed a TDS return for the Quarter 4 of F.Y 13-14 before the due date. there was a mistake in filing the return I took the challan no. of 3rd quarter of the same F.Y and the software accepted the same without showing any errors and the return was filed after the due date I received an intimation raising a demand for short payment and in 26AS a penalty U/s 234E has been levied which is exceptionally high than the TDS amount short paid. We tried to rectify the same by filing a correction statement but it is cancelled by the depatt. Please assist.

ANSHU JAIN

ANSHU JAIN (Querist)

25 August 2014 waiting for sum response..

ANSHU JAIN

ANSHU JAIN (Querist)

25 August 2014 Is there no one that can help me out..?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

28 July 2025 Got it — here’s what’s going on and how you can fix it:

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### Issue Summary:

* You filed the **Q4 TDS return** but mistakenly **used the challan number of Q3** while filing.
* The return was accepted but after due date.
* Because of this mismatch, **the system raised a demand for short payment** of TDS.
* You received a **penalty under Section 234E**, which is a flat penalty for late filing (₹200 per day of delay).
* When you filed a correction statement, it got **rejected/cancelled by the department** because the challan details and quarter details didn’t match.

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### Why the problem happened:

* **Challan numbers are linked to specific quarters** in the system. Using a challan number from Q3 in Q4 return causes mismatch.
* The system assumes the TDS for Q4 was not paid, raising demand & penalty.
* The correction statement must have the correct challan details matching the quarter.

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### How to rectify:

1. **Check your Challan details carefully:**
Identify the correct challan number(s) for the **actual payment made for Q4**. If you mistakenly referenced Q3 challan in Q4 return, find the actual Q4 challan.

2. **File a Correction Statement for Q4 with Correct Details:**

* Use the correct challan number and date that correspond to Q4 payments.
* If you did not pay TDS for Q4 earlier, deposit the correct amount with interest and penalty, get a new challan, and use this in correction.
* Correction statements must be filed **within 1 year from the due date** of the original return.

3. **If challan used is wrong and payment was made in previous quarter:**

* You may need to **file a correction statement for Q3** to include the challan details properly.
* Or file a refund claim for wrongly paid TDS and deposit fresh TDS for Q4 with correct challan.

4. **Penalty under Section 234E:**

* This penalty is ₹200 per day for late filing beyond due date.
* Unfortunately, this is a strict penalty and cannot be waived unless you can prove genuine hardship or there is an error on the department's side.
* If you file the correction return promptly, further penalty will be avoided.

5. **Contact TIN Facilitation Center or your Chartered Accountant:**

* They can assist in re-filing correction with correct details and submitting rectification requests.
* You can also file a **Rectification Request** online under Section 154 if you believe penalty is wrongly levied.

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### Important Notes:

* Always double-check challan numbers, dates, and TDS amounts before filing returns.
* Keep all challan receipts safely for future reference.
* Use the latest FVU software and ensure it’s updated for all validations.

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