WRONG SECTION REFLECTED IN CHALLAN 281

[sa Amr]

Dear Sir,

In Q2 last Financial year, TDS was recovered from a vendor against a bill of ₹ 8,00,000 @ ₹ 1% instead of ₹ 2% (194 C).

After filing of TDS returns @ 1%, a short fall of ₹ 8000 along with ₹ 250 as interest was raised by IT Department.

The same was paid by raising Challan 281 and was added through correction request in TRACES. How ever on submission of revised return again a demand of ₹ 32000 with interest was raised by IT Department. After going through Justification report it was revealed that the Section was mentioned as 194 A instead of 194 C.

On Log In with TRACES it was revealed that the particular penalty challan has been booked under section 194 A instead of Section 194 C.

Can such fault be rectified on line. If yes what would be the procedure and if not what is the alternative way.

AI Summary

Company Faces TDS Shortfall Due to Incorrect Deduction Rate and Section Code; Seeks Online Rectification Advice In a financial issue discussed, a company mistakenly deducted TDS at 1% instead of 2% for a vendor, leading to a shortfall and interest demand by the IT Department. A correction was made using Challan 281, but a revised return led to a further demand due to an incorrect section code (194 A instead of 194 C). The query seeks advice on rectifying this error online or alternative solutions. The response suggests referring to a specific website for guidance on online rectification of TDS returns.