When submitting TDS through challan, the deductor must supply information such as his or her PAN/TAN, the relevant assessment year, the applicable major and minor head code, the nature of the payment, and the amount of TDS to be deposited. While providing all of these details, there maybe clerical errors at anytime, resulting in the deductee receiving no tax credit. This article will be helpful in knowing about TDS Challan Correction Procedure.
Let’s take a quick look at “What is TDS (Tax Deducted at Source)?” before focusing on the TDS Challan correction procedure.
TDS (Tax Deducted at Source) was created with the goal of collecting tax directly from the source of revenue. According to this notion, a person (deductor) who is required to make a payment of a specific sort to another person (deductee) must deduct tax at source and send it to the Central Government’s account.
A difference in the specifics of the processing and reporting of tax in the TDS challan will result from an inaccurate financial or assessment year. As a result, there are chances that a deductee will not receive any Tax Credit.
Individuals obligated to collect or deduct tax from payments under the Income Tax Act of 1961 are given a Tax Deduction and Collection Account Number (TAN). However, the TAN is sometimes mentioned or changed improperly in the system. As a result, the payment is not recorded in the tax returns, and the tax department is unable to validate them.
If a person’s Permanent Account Number (PAN) is entered incorrectly, the tax paid will not be recorded, resulting in non-payment of tax by the same person.
If the deposit date differs from the TDS challan date, there will be a data mismatch, and the refund will most likely to be refused.
The TDS filed may be rejected if the information provided by an individual or a representative of an organisation or entity is erroneous. The same goes for the deductor information, which if entered improperly will prevent the file from being submitted to the portals.
When approaching a bank for TDS challan adjustment, an individual must be aware of the following points.
TDS Reconciliation Analysis and Rectification Enabling System (TRACES) allows for online TDS challan correction. The deductor is needed to follow the processes outlined below:
While a TDS challan can be changed, it cannot be removed from a statement that has already been submitted because it has been utilized. Furthermore, a taxpayer must request TDS challan correction in the bank within seven days of the date of deposit of the document. In this case, the taxpayer should contact the appropriate bank and request a challan rectification.
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on tds challan Minor Head is wrong then how to rectify. i.e instead of code 200 by mistake 400 is mentioned.
Hello Rakesh,
In this case you have three options;
1. TDS Challan Correction Via Bank,
2. TDS Challan Correction by an Assessing Officer,
3. TDS Challan Correction in TRACES.
You can select any of the above method for the rectification. For further assistance contact us at +919643203209 or email us at info@ebizfiling.com.