WRONG SECTION QUOTED IN TDS CHALLAN - Professionals - Taxation - TIK Share
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WRONG SECTION QUOTED IN TDS CHALLAN


Kamaldeep Singh

2014-03-11

Hi,

Guys, kindly help me with this. By mistake section 94I has been quoted in challan 281 instead of 94A. Bank has refused to correct it as they say they have the power to correct it within 24 hrs. only and payment was mde on 07/03/14 so they can't help in this. Do we need to get the challan corrected from Income tax TDS officer? or we can file the return in April 14 with this Challan, as now section under which challan is deposited though is required to be mentioned in challan while payment of TDS but is not to be inserted in challan entry section in Form 26Q and relevant section is to be mentioned with each entry.

Kindly guide.

Regards,

CA Kamaldeep Singh.

Vedanta Deshika

2014-03-11

Please visit this link for Challan correction Mechanism

Reply

CA Pulkit Sharma

2014-03-11

Banks can rectify challans withing allowed time. Assessing officer has the power to rectify the challans.

Only twice the challans can be rectified subject to conditions.

To rectify wrongly deposit of TDS challan in different section, assessee will have to write letter to Income Tax department in TDS ward to rectify the same and it will be rectified by the ITO (TDS) Officer. There is no provision of writing the correct TDS section in return to rectify the writing of wrong TDS section in challan. If this is done, there will be a mismatch challan shown in the return.

The procedure to rectify the challan by assessing office is:

After the window period available to banks for challan correction, the assessee can
make a request for correction to his or her assessing officer (TDS ward), who is authorized under the departmental OLTAS application to make such correction in challan data in bonafide
cases, to enable credit of the taxes paid, to the concerned assessee.

 

Reply

CA Pulkit Sharma

2014-03-11

Format for writing letter to AO.

 

Date :..........

To
The ITO
Ward.xx (y), TDS, City
Address

Sub: Request for Correction and/or rectification of Section in TDS challan.

Sir,

This is to inform you that we had deducted TDS of Rs xxx/- (xx) u/s 194A pertaining to the month of Feb’2014 but at the time of online payment of the said amount the section was wrongly selected as 194I instead of 194A.

We, therefore, request you to kindly make the necessary correction in your records. We are also enclosing a photocopy of the said challan.

We regret for our inadvertent mistake.

Thanking you,

Yours faithfully,



For .................... Pvt. Ltd.


(Authorized Signatory) 

Reply

Kamaldeep Singh

2014-03-11

Guys, Thanks for your quick response. Well, I have done this challan correction work earlier also but I was just trying to avoid it. I now know that I will hav to do it as I have no other choice. I just want to know what is the relevance of these words:

  • Section Code has been removed from Challan and shifted to Deductee / Collectee Details – this implies that one can now deposit TDS against different sections through one Challan instead of separate Challans for each Section.

I haven't yet discovered a way out whether payment for different sections can be made through one challan while I pay TDS online. I thought that this was introduced so that various sections entries could be linked to one challan in 26Q. I am very confused.

Reply

CA Pulkit Sharma

2014-03-11

@Kamaldeep

We can use one challan for one section.

While filing the return each challan has to be matched with payments. If the major/minor heads of the payment does not match with heads given in challan department will ask for correctional statement.

Its not possible to pay different taxes in one challan.

Reply

Kamaldeep Singh

2014-03-11

Thanks bro.

Reply

Murtz Mirza

2014-08-23

Dear Pulkit

I had received two tds certificates from a company who had taken my premises on rent for A.Y. 2014-15.  the company is under winding up (directors are fighting). Now, whilst filing my return, i noticed that  the HEAD for deduction is shown in one certificate as 194IA and in one certificate as 194J

I cannot get the company to rectify the certificates. Will my return / tds (tax deduction) be disallowed whilst filing my return.

If it is disallowed, i will also face penalty under advance tax non payment.

Please advice , what should I do.

 

 

Reply

CA Pulkit Sharma

2014-08-23

You can file your returns and tax will be allowed by income tax department. However get a letter from company if possible about wrong filing. Incase IT department request you to provide information on your professional income you can produce the letter from the company.

Fault is done by compnay, the best you can do is get it rectified or get a letter. You at your end cannot do anything.

Reply

Pradipta Pradhan

2016-01-08

Hi I have deposited TDS Contractor Non Company 94C but by mistake one professional fees deductees comes under TDS contractor challan. But the thing is i have deposited 10% TDS on contractor on professional fees & 1% on other deductee. Is there any problem if i file return on the above.

Kindly help ..

Reply

CA Pulkit Sharma

2016-01-08

@Pradip

This seems natural. Nothing wrong, you need to select same challan while filing your TDS return. Although there is no such TDS rate and check if you can select deductee under 194j while filing return otherwise go under 94C only.

Reply

Pradipta Pradhan

2016-01-08

Thank you Pulkit Sir.

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