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.

[DR.MARIAPPAN GOVINDARAJAN]

Please see the website http://economictimes.indiatimes.com/wealth/tax/traces-know-all-about-online-rectification-of-tds-return/articleshow/47745633.cms

AI Summary

TDS section misclassification may be corrected via TRACES rectification to address challan booking errors and demand adjustment promptly. A TDS shortfall was paid via Challan 281 but the payment was booked under the wrong section head, creating a demand when a revised return was filed; the taxpayer inquired whether this section misclassification on the challan can be rectified online via TRACES and what procedure or alternative remedy exists.