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Tds

Vinod Kumar Shukla (Accountant) (106 Points)

23 February 2016

Dear Sir, One of my client has obtained a lower TDS deduction certificate from income tax dept. Nature of business with him is contractual and I deduct TDS @ 0.42% as per certificate. While filling TDS return, I have mentioned this. But now, I got notice for lower deduction. How to solve this issue? Thanking you in advance.

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14 Replies

CA Mehul Chudasama (Chartered Accountant) (618 Points)
Replied 23 February 2016

Just File TDS correction return with file up the reason for lower deduction in deductee sheet along with mention Certificate number Address etc given in TDS deductee sheet

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Raghavendra (Accountant) (53 Points)
Replied 23 February 2016

You can also make online correction through TDS Traces Website, under challan correction tab

CA Chandan Sharma (Chartered Accountant) (283 Points)
Replied 23 February 2016

Dear Mukesh

Yes, you can make correction with TRACES website in online mode or file offline revised TDS return after updating the Lower Deduction details.

Please do check the details mentioned in the Lower Deduction Certificate (“LDC”) as TDS rate, amount of consumption yearly, LDC number, period of certificate.

CA Chandan Sharma (Chartered Accountant) (283 Points)
Replied 23 February 2016

Dear Mukesh

Yes, you can make correction with TRACES website in online mode or file offline revised TDS return after updating the Lower Deduction details.

Please do check the details mentioned in the Lower Deduction Certificate (“LDC”) as TDS rate, amount of consumption yearly, LDC number, period of certificate.

VISHAL JAIN (ra) (45 Points)
Replied 23 February 2016

if one person deduct someone tds and deposit this after the 1st person file its ITR can that person adjust its TDS in next year

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CA Chandan Sharma (Chartered Accountant) (283 Points)
Replied 23 February 2016

Dear Vishal

The query is not clear, please draft again

ashish (article) (151 Points)
Replied 23 February 2016

Well chandan ji.. Question is quite clear.. It is that if deductor has deducted TDS of deductee but not deposited till deductee has filled his ITR(i.e. deductee must not had been able to claim the TDS in that period) so whether such deductee can claim such TDS in subsequent period...... Well very good question even I do also want to know it's answer!!!!!!!!!!...

VISHAL JAIN (ra) (45 Points)
Replied 24 February 2016

Yes sir, Mr. Ashish rightly understand please answer same

CA Chandan Sharma (Chartered Accountant) (283 Points)
Replied 24 February 2016

Dear,

First thing if TDS amount is not deposited by the deductor before filing the Income Tax Return (‘ITR’) still we can claim/show it in our ITR pertaining to that assessment year. As soon as the amount deposited by the deductor it will automatically update the 26AS. Afterword, if the credit of the TDS amount not given in the 26AS please file the rectification u/s 154 of the Act for the same.
The other option is to revise the ITR as soon as TDS amounts reflect in the 26AS. The revised return can be filed within one from end of the assessment year.
Further if we want to claim in the next assessment year then we can carry forward the TDS credit amount and claim in the next AY by showing under brought forward TDS credit. In that reference please see the ITR`s from AY 2014-15 onwards there is an option in the ITR to carry forward and brought forward the TDS claim. Before AY 2013-14 there is no such option in the ITR.