TDS WRONG SECTION AND EXCESS

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Abhinav Jain

Manager

70 Points Posted on 25 March 2009

The question is from a Pvt. Ltd. company.

I have made a mistake by following someone's advice of deducting TDS on contractual security charges @ 11.33% under 194J, instead of 2.27% under 194C.

In all I have paid over Rs.8000/- under 194J when I should have paid NIL in 2008-09. There is no other party with which I can adjust under 194J in the e-return.

MAIN PROBLEM:
1) I have deducted and paid extra Rs.6166/-. Can I get refund? Can I correct somewhere when filing in e-return?

2) Around Rs.1500/- I have paid under 194J wrongly. (So it looks like I have not paid Rs.1500/- under 194C)

How do I correct this mistake?

What are my options?

Replies (5)

madhur gupta

student/article

539 Points Posted on 25 March 2009

u may go for filing revised return

Abhinav Jain

Manager

70 Points Posted on 26 March 2009

No, I have not yet filed the returns.

I have made online payment under wrong section and 11.33% which is higher than 2.27%. So I have deducted and paid more!

madhur gupta

student/article

539 Points Posted on 28 March 2009

if u have deducted more t.d.s no problem u deposiy it with dept

other party will get credit of full amt

in future u deduct correct amt of t.d.s

T. Venu Madhav

Manager-Finance & Accounts

29 Points Posted on 02 April 2009

One Option available is tell the same thing to the Party from whose you deducted more TDS. Explain the same and make less payment to the party. and issue Form 16A to the party with Higher Amount of TDS.i.e actual TDS paid. File the Return U/S 194C the Higher Amount. Deducting Less than the amount Specified is Wrong and not deducting more TDS. Dont Worry.

Abhinav Jain

Manager

70 Points Posted on 03 April 2009

Thanks Madhav!

What I did was paid the actual TDS under 194C as I should have. And I asked the person who does tally entries himself to make it adjust with his account or with his brothers, whoever he can with. He agreed too.

Abhinav