27 February 2021
While making the TDS payment Tan no. entered wrongly in Challan. The Indemnity Bond is Complulsory for such correction proceedure (rs. 500/- stamp paper or Rs 100).
06 July 2024
When correcting a TDS payment where the TAN (Tax Deduction and Collection Account Number) was entered incorrectly in the challan, it's essential to follow the correct procedure to rectify the error. Here’s what you need to know:
### Indemnity Bond Requirement:
1. **Indemnity Bond Details:** - For corrections related to TDS payments with an incorrect TAN, an indemnity bond on stamp paper is typically required. This bond serves as a legal assurance against any potential risks or liabilities arising from the correction.
2. **Stamp Paper Amount:** - The indemnity bond can be on stamp paper of Rs. 500/- or Rs. 100/-, depending on the specific requirements of the tax authority.
### NOC (No Objection Certificate) Requirement:
3. **NOC from Wrong TAN Holder:** - It is generally advisable and often required to obtain a NOC from the entity or person associated with the wrong TAN. This NOC affirms that they have no objection to the correction being made to the TDS payment details.
4. **Compulsory Requirement:** - Whether a NOC is compulsory depends on the specific policies and procedures of the tax authority handling the TDS correction. In many cases, obtaining a NOC helps expedite the correction process and ensures that all parties involved are informed and in agreement with the correction.
### Steps to Take:
- **Prepare Indemnity Bond:** Draft and execute the indemnity bond on the appropriate stamp paper amount (Rs. 500/- or Rs. 100/-).
- **Obtain NOC:** Contact the entity or individual associated with the wrong TAN and request a NOC. This can be in the form of a letter or certificate affirming their consent for the correction.
- **Submit Documents:** Along with the indemnity bond and NOC, submit any other required documents (such as proof of payment, original challan details, etc.) to the tax authority handling TDS corrections.
### Conclusion:
While the indemnity bond is compulsory for correcting TDS payments with incorrect TAN details, the requirement for a NOC may vary based on local tax regulations and the discretion of the tax authorities. It is advisable to consult with a tax professional or contact the relevant tax authority directly to clarify specific requirements and ensure compliance with the correct procedure for TDS correction in your jurisdiction.
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