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TDS incorrect

CA Raj Doshi (Practising CA) (8735 Points)

16 January 2024

What are the consequences (other than interest and late fees ) of TDS deducted under Sec 194C at 1% but actually was required to be deducted at 194J at 10%.

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8 Replies

RAJA P M ("Do the Right Thing...!!!") (127175 Points)
Replied 17 January 2024

If wrong deduction then it's resolving like this (without any consequences)

--> Inform to deductee for wrong deduction and deduct actual amount.

--> TRACES - Go with correction in the details and actual amount...

(updation may be take one day)

1 Like

CA Raj Doshi (Practising CA) (8735 Points)
Replied 17 January 2024

Sir.

Any consequences like disallowance in computation or any reporting in tax audit ?

sabyasachi mukherjee (26073 Points)
Replied 17 January 2024

Yes , necessity of such reporting

RAJA P M ("Do the Right Thing...!!!") (127175 Points)
Replied 17 January 2024

@ Mr CA Raj Doshi,

It is disallowed in computation...
But, It must be clear before Tax Audit...

Otherwise it will disallowed with actual expenditure, TDS payment, Required payment and Interest with penalty...

CA Raj Doshi (Practising CA) (8735 Points)
Replied 17 January 2024

Dear Sir

Under which section will the disallowance trigger in such cases of short deduction ?

RAJA P M ("Do the Right Thing...!!!") (127175 Points)
Replied 17 January 2024

No Sir,

The TDS deduction can't be disallow in any manner
It must be clear before filling of ITR (Before filling of return All statuotary dues will be close)...

In case it's wrong then its need to correction.

If can't rectify then finally it can be sec 40(A)(ia) generally forced.