Tds at wrong rate

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ashish alexander

ashish alexander (Querist)
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18 March 2014 Mr X was done TDS @ 1% as 194C instead of 194J. Can he claim deduction on net tax payable?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 March 2014 TDS deducted by customers can be claimed as deduction irrespective of the section under which such TDS has been deducted.

ashish alexander

ashish alexander (Querist)
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18 March 2014 sir thank you for the reply but can you tell me whether some act or case law specify the same?

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 March 2014 The Income Tax Act provides that TDS deducted shall be reduced from the tax liability.

It does not specify the section under which TDS has been deducted.

ashish alexander

ashish alexander (Querist)
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18 March 2014 thank you sir
however can we change the nature of our income from professional to contractual simply because the TDS is done at wrong rate

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 March 2014 1. Do NOT change the nature of income. Declare actual nature of service.

2. Claim TDS as deduction from tax liability.

3. Use the thank button to convey your thanks.

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