To collect tax directly at the source of revenue, the TDS concept was established. Tax filing is a labor-intensive process that is prone to errors. The TDS statements and returns must be correct. To repair any errors in the initial returns or statements, the Income Tax Department has established a mechanism for submitting revised TDS return “correction returns/statements.” Informational, computational, or human errors are all possible types of blunders. In this article, we’ll discuss the many TDS Return errors that can occur and how to fix them.
What is TDS Return?
Tax Deducted at Source is referred to as TDS. This theory states that a deductor who must pay someone else (the deductee) must deduct tax at source and send the money to the Central Government. The deductee from whose income tax source deductions have been made is entitled to get credit for the amount that has been deducted, according to a TDS certificate.
What Is A Revised TDS Return?
The person who is deducting the TDS must routinely submit a TDS Return to NSDL. If the deductor discovers an error or needs to make modifications to the return, they can file a Revised TDS Return to revise the prior return.
Who is required to file TDS return?
The following categories are required to file TDS returns.
- Every organization (including deductor and collector)
- All governmental revenue and tax collectors
- Individuals whose accounts are audited according to the Income Tax Act of 1961
- Any additional taxpayers who had TDS deducted are required to file TDS Returns.
When do we need to file revised TDS Returns?
We need to file revised TDS returns in the following cases:
- TDS statement with the incorrect PAN number
- Unexpected TDS amount deducted
- Unexpected use of the Challan quantity
- Including incorrect information in the return
Corrections in TDS Return, in various forms
Based on the changes the deductor intends to make to the normal return, different sorts of corrections are made. Six different categories of rectification returns can be found in general.
C1: With the exception of the TAN number, all modifications to the deductor details are subject to the C1 correction. When the PAN number, deductor name, or address are wrong, the C1 correction is generated.
C2: Changes to the details of the deductor or the Challan are subject to the C2 correction. When the Challan Serial number is entered improperly, it is necessary. However, C1 correction is also a part of C2 correction when it occurs.
C3: Any type of adjustment to the deductor details, challan details, or deductee details is supposed to be made using the C3 type of correction (except the PAN number). Correction for incorrectly stating an education Cess in great detail. The other information, such as the referral challan, may also be deducted.
C4: The C4 adjustment will apply to any modifications to the salary information. It only applies if a change is required to the Form 24Q fourth quarter statement. If the gross salary or total salary record is inaccurate, this modification may be made.
C5: When there is a difficulty with the deductee’s PAN number, C5 rectification is necessary. Additionally, Forms 26Q, 27Q, and 27EQ can be used to update the PAN.
C9: For any mistakes involving the addition of a new challan or any associated deductions, the C9 correction is given. The only change that has to be made online is this.
While preparing TDS returns, businesses and employers must deal with a sizable volume of information, which can lead to various errors. TDS return filings frequently require adjustments. Typically, C1, C2, C3, C4, and C5 updates are made using a single file. Following three days of filing returns, you can check for revisions. You need to check your TDS Return with your TAN and receipt number.