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TDS return filled in wrong heads

08 February 2023

The second quarter return of TDS wrongly filled under the head 194I, Instead of 195. what will be the procedure for the correction?
and what will happen, if no corrections are made?

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3 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 08 February 2023

Check weather you can file revise TDS return ?.

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A.Senthil Subramanian (Tax Consultant) (1658 Points)
Replied 20 April 2023

194I section comes under 26Q. section 195 comes under 27Q. Two are different forms. So first make it zero in 26Q by filing correction filings. After verifying its acceptance & correctness then file 27Q for Q2 with the same challan. But being it is late return you may have to pay late filing fees for this. If not filed in 27Q i.e section 195 is for foreign payment, the impact of the Foreign payment may not be established with your records. For the more information please consult your CA/ Tax professional

Pranjal Gupta (141 Points)
Replied 21 April 2023

If you have wrongly filled TDS return under the wrong section, you can rectify the mistake by filing a correction statement. You can do this by filing a revised TDS return for the same quarter and financial year. You will need to select the "Original Correction" option in the return filing utility and provide the correct details for the section under which TDS was actually deducted.

The correction statement should be filed within the stipulated time period, which is generally one year from the end of the financial year in which the original return was filed.

If no correction is made, there can be consequences such as penalties or interest levied by the Income Tax Department for incorrect filing. Additionally, the taxpayer may face difficulties in claiming TDS credits or in obtaining refunds if the TDS is not reflected correctly in their Form 26AS or other tax records.

Therefore, it is advisable to rectify the mistake as soon as possible to avoid any future complications.

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