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TYPES OF CORRECTION IN TDS

To collect tax directly at the source of revenue, the TDS concept was established. Tax filing is a labor-intensive process that is prone to errors. The TDS statements and returns must be correct. To repair any inaccuracies in the original returns or statements, the Income Tax Department has established a mechanism for submitting revised TDS return "correction returns/statements." Informational, computational, or human errors are all possible types of blunders. In this article, we'll discuss the many TDS Return errors that can occur and how to fix them.

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TYPES OF CORRECTION IN TDS

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  1. TYPES OF CORRECTION IN TDS RETURN VINOD K AGRAWAL & ASSOCIATES, CA

  2. What is TDS Return? • Tax Deducted at Source is referred to as TDS. • This theory states that a deductor who must pay someone else (the deductee) must deduct tax at source and send the money to the Central Government. • The deductee from whose income tax source deductions have been made is entitled to get credit for the amount that has been deducted, according to a TDS certificate.

  3. What is a Revised TDS Return?  • The person who is deducting the TDS must routinely submit a TDS Return to NSDL. • If the deductor discovers an error or adjustments that are required, they may file a Revised TDS Return to revise the prior return.

  4. Who is required to file a TDS return? The filing of TDS returns is needed for the following categories. • Every business (including deductor and collector) • All tax and revenue collectors for the government • Account holders who are subject to audits under the Income Tax Act of 1961 • The filing of TDS Returns is necessary for any additional taxpayers from whom TDS was deducted.

  5. When do we need to file revised TDS Returns? In the following circumstances, we must submit amended TDS returns: • The TDS statement contains the wrong PAN number. • TDS amount unexpectedly deducted • Unexpected use of the quantity on the Challan • Giving false information on the return

  6. Types of correction in TDS Return under Income Tax Depending on the changes the deductor intends to make to the regular return, different correction kinds are used. There are generally six different categories of corrected returns. • C1 • C2 • C3 • C4 • C5 • C9

  7. C1 With the exception of the TAN number, all modifications to the deductor details are subject to the C1 correction. When the PAN number, deductor name, or address are wrong, the C1 correction is generated. • C2 Changes to the details of the deductor or the Challan are subject to the C2 correction. When the Challan Serial number is entered improperly, it is necessary. However, C1 correction is also a part of C2 correction when it occurs.

  8. C3 Any type of adjustment to the deductor details, challan details, or deductee details is supposed to be made using the C3 type of correction (except the PAN number). Correction for incorrectly stating an education Cess in great detail. The other information, such as the referral challan, may also be deducted. • C4 The C4 adjustment will apply to any modifications to the salary information. It only applies if a change is required to the Form 24Q fourth quarter statement. If the gross salary or total salary record is inaccurate, this modification may be made.

  9. C5 When there is a difficulty with the deductee's PAN number, C5 rectification is necessary. Additionally, Forms 26Q, 27Q, and 27EQ can be used to update the PAN. • C9 For any mistakes involving the addition of a new challan or any associated deductions, the C9 correction is given. The only change that has to be made online is this.

  10. THANKYOU VINOD K AGRAWAL & ASSOCIATES, CA

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