One of Our client has made TDS payment U/s 194 - Dividend. 

Actual TDS Payment was for payment of Professional Services i.e. U/s 194J

 Now the question is how to file the TDS return.  Which section shall be quoted

From the point of Audit it is clear TDS deducted and remmited and therefore no comments on that.

 Due to error done while making TDS payment, Many problem may arise:

1. TDS Challan not accepted by Traces.

2. Assessing officer may ask that TDS is appearing in 26AS under section 194 but you have not shown the Income relating to it.(for the Deductee)

3. Deductor may get notice. etc.

 Advice : be careful while making TDS payment and filling the TDS returns.

Posted 3 years, 4 months ago by SANJAY KUMAR GANNA


not much complicated situation, just draft a letter to related assessing officer saying about the fact & to correct the mistake i.e. from 194 to 194j & also enclose challan copy of TDS paid.

after receiving your letter, assessing offcer will consider the query & will rectify the same.

once all this procedural formalities gets over you can file your TDS return.

Posted 3 years, 4 months ago by MANOJ SHARMA


TILL THAT TRACES WILL SEND NOTICE FOR LATE FILLING FEE

Posted 3 years, 4 months ago by SANJAY KUMAR GANNA


As manoj told, tds can be shifted from 194 to 194J by the AO.

Posted 3 years, 4 months ago by Mukesh Jain CA


late filling fees applys when you will file your TDS return after due date of filling return. to avoide late filling TDS liability you can file correction statement of TDS & the same is filled after filing your original return of TDS.

Posted 3 years, 4 months ago by MANOJ SHARMA


I think querry is very well solved by Manoj Sharma.

File the return and than revise it within time allowed.

Posted 3 years, 4 months ago by CA Pulkit Sharma


The only practical issue comes is the officers may harass to transfer the credit. They may not show interest & in one sitting your work will not  happen.

Posted 3 years, 4 months ago by Mukesh Jain CA


@Mukesh, Can you explain this?

I mean where the interest part comes?

Agree you will require two sittings, one for original and second for revised.

Posted 3 years, 4 months ago by CA Pulkit Sharma


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