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Reason for Mismatch of TDS & Correction Statement

MISMATCH OF TDS

1. A major problem noted across the country is that of mis-match of TDS payments claimed by the deductees in their returns of income vis- a -vis the TDS payments reflected by the deductors in their e-TDS returns and also the non reflection of the TDS payments in the system, in case the e-TDS returns have not been filed by the deductors.

2. As per the present procedure, all payment of Direct Taxes, either by way of TDS / TCS, Advance-tax, Self-Assessment Tax and Regular Tax are uploaded to the credit of the concerned assessee in the computer systems. The Assessing Officers give credit to the taxes, when they are uploaded to the account of the concerned assessee through the national network of the Income-tax Department. In case of TDS / TCS, unless the deductors correctly upload the details of the deductions including the PAN and the amount, the taxes cannot be given credit in the account of the concerned deductee.

3. In all cases where there is a mis-match, the tax credits cannot be given, resulting in withholding of refunds and also creation of infructuous demand.

Main reasons for TDS mismatch

Deductor related reasons :

Deductee related reasons :

Bank related reasons :

 

Correction statements for correcting the mistakes in TDS statements:

Type of correction statement

Nature of corrections that can be made

C-1

Updation of deductor details – Name, address etc.

C-2

Updation of challan details

C-3

Updation of deductee details including addition of new records and deletion of existing records

C-4

Updation of salary detail records, deletion of existing records and addition of new records

C-5

Updation of PAN of deductees

C-9

Addition of challan records and underlying deductee records

Y

Cancellation of TDS statement filed with incorrect TAN

 

Action to be taken by deductors for various types of errors:

Nature of error

Type of correction statement to be filed or other action to be taken
Omission to include details of a challan

C-9

Entering of wrong CIN in challan details

C-2

Entering of incorrect amount in challan details

C-2

Quoting of wrong TAN in challan Approach TDS A.O for correction in the system
Quoting of wrong minor head code in challan Approach TDS A.O for correction in the system
Omission to include details of a deductee in the challan wise break-up

C-3

Non quoting of PAN of a deductee

C-5

Quoting of invalid PAN or non existent PAN or incorrect PAN of a deductee

C-5

Entering incorrect TDS amount in deductee details

C-3

Entry of wrong TAN by the bank while uploading challan data Approach TDS A.O for correction
Entry of wrong minor head code by the bank while uploading challan data Approach TDS A.O for correction

 

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