Tds paid in wrong assessment year

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 hi.
I need an expert advise on the following issue.
One of my client has turnover of 60lac in assessment year 2013-14. that means he is not liable to deduct TDS in AY 2014-15.
Still the client took TAN number and deducted TDS on some payments U/S 194C, and filed TDS returns.
one bill of 30-3-2014 was found after filing TDS return of Quarter 4 (jan-march 2014) of AY 2014-15 before due date.
I paid TDS for this bill online on 5th June 2014. in Q1 of AY2015-16

Turn over of AY 2014-15 is more than 2 crore.covered in audit first time.

1.How to rectify the above mentioned problem?
2.Can we have an option that "we were not liable to deduct TDS ,as we were not been audited in last AY2013-14"?

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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13 June 2014 Firstly there is no worry required
you have two options

1. you can pay one additional challan for AY 2014-15 & after that you can revise your return with that challan (in all case you have to rectify) & the challan which you paid with wrong Assessment year for that you can adjust the same in the Q1 of AY 2015-16 as now the liability of deducting TDS is on(recommended option)

2nd option
correction mechanism from bank is applicable only for physical challans with deposit date greater than equal to September 1, 2011.
For rectifications in challans paid through online mode (internet challan) , taxpayer may contact their concerned Assessing Officer (AO) of the Income Tax Department (ITD).