Correcting TDS Payment Discrepancy in Form 26QC and Updating Form 16C

897 views 4 replies

Abdul Wasi

8 Points Joined July 2017

Hi everyone,

I need some help with an issue related to Form 26QC and TDS payment on rent. Initially, I entered the rent amount incorrectly, which resulted in a lower TDS being paid. I submitted a correction to update the rent amount, and now the corrected rent amount is showing, but the TDS amount is still the old, incorrect one.

My questions are:
1. How do I pay the remaining TDS amount that is due? Is there a specific challan or process for this additional payment?
2. How can I update Form 16C to reflect the correct TDS amount after making this additional payment? Are there any steps or documentation I need to follow to ensure Form 16C is accurate?
3. Are there any penalties or compliance issues I need to be aware of due to this correction and additional payment? What can I do to avoid or mitigate any penalties?

Any guidance or advice on this would be greatly appreciated!

Thanks in advance!

Replies (4)

sabyasachi mukherjee

27912 Points Joined May 2017

Ammend the return file a revised return

Eswar Reddy S

CFO- at NHTF

58275 Points Joined August 2012

Tds at 5% calculation will be on total rent and it is automated.

Check total rent column and correct it to full year rent and you have to enter % of rent as 5%

Abdul Wasi

8 Points Joined July 2017

Initially, the total rent amount was ₹90,000, so 5% TDS should have been calculated on this amount. However, I mistakenly entered ₹80,000 instead of ₹90,000, resulting in a difference of ₹10,000. Consequently, I paid 5% TDS on ₹80,000, which is ₹4,000.

When I submitted a correction request, I updated the rent amount to ₹90,000, which requires a 5% TDS of ₹4,500. Therefore, there is a remaining TDS amount of ₹500 that needs to be paid (₹4,500 - ₹4,000).

The person paying the rent does not have a TAN, as they are a resident individual paying rent exceeding ₹50,000, which requires 5% TDS. Could someone please guide me on the process to pay the additional ₹500 TDS and correctly file it in Form 26QC and Form 16C?