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Tds payment made to wrong TAN

T.N.Reddy (M.Com) (255 Points)

22 April 2023

Sir, when we pay TDS to wrong TAN account, I learned that Banker can rectify such errors from his end within 15 days from the date of payment, is it correct? if so, to that extent, any provision in the income Tax Act or rules or any info from Traces site.

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178301 Points)
Replied 22 April 2023

https://incometaxindia.gov.in/Documents/challan-correction-mechanism-26082011.htm

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178301 Points)
Replied 22 April 2023

1. https://www.protean-tinpan.com/services/oltas/oltas-note.htm l

2. https://learn.quicko.com/application-for-correction-change-in-tan-tin-nsdl

ashish (ca) (82 Points)
Replied 22 April 2023

Yes, if TDS has been paid to a wrong TAN account, the bank can rectify the error from their end within 7 days (not 15 days) from the date of payment. The provision for this is given in Rule 128 of the Income Tax Rules, 1962. According to this rule, if any sum has been paid to the credit of the Central Government but has been credited to the wrong TAN account, the bank can rectify the error by transferring the sum to the correct TAN account within 7 days.

To initiate the process of rectification, the deductor needs to make a written request to the bank within 3 days of making the payment. The request should contain the following details:

The name and address of the deductor
The TAN of the deductor
The amount and date of payment
The TAN to which the payment was made erroneously
The correct TAN to which the payment should have been made
The bank will then verify the details and rectify the error within 7 days. However, it is important to note that this provision applies only to cases where the sum has been credited to a wrong TAN account belonging to the Central Government. If the payment has been made to an incorrect account belonging to a party other than the Central Government, the deductor will need to approach the concerned party for rectification.