Payment of tds under wrong category

TDS / TCS 1449 views 3 replies

Debashis

MBA (Finance ) Asst. Manager Accounts

65 Points Posted on 23 December 2011

Dear Friends , During the month of November 11 My company had to pay TDS U/s 194 J Rs. 25,000/- and U/s. 194 I Rs. 10000/- and 194 A Rs. 30,000/- But unfortunately , payment of Rs. 35,000/- has been made u/s 194 J . and No amount has been deposited under 194 I. what would be the consequence ? My queiry is whether the balance amount of Rs. 10,000/- that has been paid u/s 194 J could be adjusted against next months payment under same category ? else , could it be adjusted against due under 194 I for the current period ( that is not paid ) waiting for quick response. thanks and regards, Debashis .

Replies (3)

deepak

C.A & C.S Final

63 Points Posted on 23 December 2011

Dear Debashis,

For the above related query, you must visit to the respective I.T Ward and ask to rectify the mistakes done .

CA Kiran Sutrave

428 Points Posted on 24 December 2011

Dear Debashis

Since the payment is made in one challan it is advisable to make a new payment under section 194I along with interest. Adjusted Rs. 10,000/- which is excess payment of TDS under section 194J in the month of December 2011 or till March 2012.

While filing TDS Returns, show Rs. 10,000/- in others and not in tax amount. When you are adjusting it with TDS liability of next month show it under Tax amount.

If 2 seperate Challans were deposited or payment was made online then as per new Challan Correction Mechanism, you can make an application for change with the Bank where the Challan has been depsoited within a period of 3 months from the date of payment or deposit of TDS.

For your reference Challan Correction Mechanism is attached for your reference.

sadashiv Rupchand Gaikwad

Proprietor

523 Points Posted on 25 December 2011

Write a letter regarding modification of challan in nature of Payment. Obtain copy changes copy from Banks.To show changes and credit certifacates to the TDS Officer