DEPOSIT OF TDS UNDER WRONG SECTION

[S.C. WADHWA]

Dear Sir,

My client a Pvt. Ltd. company deposited tds under section 194I instead of under section 194A.

Please mention how same may be corrected. 15/01/13 is due date for furnishing of return. Please tell if I have to visit inome tax office, then where I have to go and what is the procedure. My client ward is 50(4) M. Please tell the address of Income tax office where I have to visit.

 

[saurabh ghai]

Do not worry for same. What you have to do is mention correct section number in deductee sheet. As per new rules TDSCPC doesnt match challan section code. What it matches is section code written in deductee sheet with rate of TDS deducted. Suppose if u mention section code 194C then rate of TDS must be 2 percent or 1 percent as the case may be and if u would mention 194J then rate of TDS must be 10 percent .

[Pankaj Arora]

Dear Mr. Saurabh Ghai

Is there any circular/ notification/ communication from tdscpc or income tac to support your views.

Regards

AI Summary

TDS section code correction: amend deductee sheet to reflect correct section and matching deduction rate. Correct the TDS entry by amending the section code in the deductee sheet so that the section code recorded there matches the actual rate deducted; TDSCPC verifies the deductee-sheet section code and rate rather than the challan section code, so updating the deductee-sheet section to the proper head consistent with the deduction rate and then filing the return by the due date is the operative corrective measure.