TDS section wrong

Yes, it can be corrected, but how it is corrected depends on whether the challan has already been consumed in a TDS return. 

• Once filed, section change is not allowed

• You must pay fresh TDS under 194C and claim refund for 194LC

• Act quickly to avoid interest and default notices

Claim refund for sec 194lc , pay penalty and file a revised return

Just yesterday paid. So we can able to correct section code from 4LC to 94 C

Understand the mistake

You have:

Deposited TDS under wrong section code (194-IC)

Actual nature of payment falls under 194C (contract payment)

This is called wrong quoting of section in TDS return, not non-payment of tax.

So tax is already with government .
Only reporting is incorrect .

TDS deposited under Section 194-IC cannot be used as 194C automatically.
You must file a correction return and change the section code

If TDS Return NOT filed yet

File 26Q using:

Correct section → 194C

Use same challan (BSR + challan number + date + amount)

✔ Allowed because challan is section-neutral

If TDS Return ALREADY filed

You need to file a Correction Statement

Steps:

Download Conso file from TRACES

Open in RPU utility

Change section code 194IC → 194C

Validate with FVU

Upload correction return