Incorrect claims in TDS and TCS statements include inconsistent entries or tax rates contrary to applicable income-tax provisions.

Incorrect claim apparent from information in a statement, for TDS and TCS purposes, includes a claim founded on an entry inconsistent with another entry concerning the same or another item in the statement. It also includes use of a tax-deduction or tax-collection rate that does not conform to applicable income-tax provisions. The Income-tax Act, 2025 adopts a combined TDS/TCS definition, whereas the Income-tax Act, 1961 addresses TDS and TCS separately.

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