Through the motive of imposing the tax on the source of income itself, the TDS was introduced. Subject to inevitable mistakes, tax filing takes time. Preciseness in TDS returns and statements should be there. To correct any error in the original return or statement, the Income Tax Department has begun submitting modified TDS returns “Correction Returns/Statements”. Errors can be informational, computational, or human errors. The types of errors occurring in TDS returns and the corrections that can be made are informed in this blog.
Page Contents
What Does the Term TDS Return Inform?
TDS signifies tax deducted at source. A deductor who is needed to pay another person (deductee) has to deduct tax at source and furnish the amount to the central government. The deductee is authorized to credit for the amount deducted from the income tax source on the basis of the TDS certificate.
What is a Revised TDS Return?
Regularly TDS returns with NSDL needed to be filed by the individual who has a TDS deduction. A deductor could file a revised TDS return to update the former return when he finds any error or needed revisions in the return.
Who Needs to E-file TDS Return?
The below categories are needed to file the TDS returns:
- Each organization (including the deductor and collector)
- All Government Revenue and Tax Collectors
- Individuals whose accounts are audited by the Income Tax Act, of 1961
- Any additional taxpayers whose TDS has been deducted are required to file TDS returns
Why We Need to File a Revised TDS Return?
- TDS statement with wrong PAN number
- The unexpected TDS amount is deducted
- Unexpected use of currency
- Including wrong information in return
Types of TDS Returns Corrections
The sort of corrections differs as per the revisions in the deductor’s wishes in the regular return. There are 6 types of correction returns.
C1- All revisions incurred in the information of the deductor are as per the C1 correction, with TAN number exclusion. C1 correction is been created for the PAN number, the deductor’s name or address is wrong.
C2- C2 corrections shall apply to the revision in the currency or deductor information. It is needed if the challan serial number is been furnished wrongly. If C2 correction takes place then the same could have C1 correction.
C3- C3 type of correction (other than PAN number) is for any sort of correction in deductee particulars, challan details, or deduction details. Wrong mention of education cess in correcting specific information. For further information, like referring currency, Deductions can also be applicable.
C4- Amendments in pay details are as per the C4 revision. It is applicable only if the modification is needed in the fourth quarter statement of Form 24Q. This correction can be issued when the Gross Salary or Total Salary records are wrong.
C5- C5 rectification is needed if there is any issue with the PAN number of the deductee. PAN could be updated via Forms 26Q, 27Q, and 27EQ.
C9- For errors related to the addition of new currency or any deduction associated with that currency C9 corrections are allocated. This is the only modification that is required to be accomplished online.
Closure: Companies and employers are obligated to deal with a large amount of information at the time of preparing TDS returns, which can result in errors. Modifications to TDS return submission are regular. A single file is utilized to update C1, C2, C3, C4 and C5. You can review for changes three days post-return filing. To check your TDS Return your TAN and Receipt Number are needed.
In India, there have been significant changes in the past few years for filing tax returns. By using the revised Tax Deducted at Source (TDS) returns taxpayers understand must know the process of corrections. A revised TDS return is used to streamline and efficiently the way of tax returns.
Further, the process of making any corrections can be complicated and needs a clear understanding of the rules and regulations of the process. For your needs, we have put together a simple guide to outline the different steps for making corrections in your online TDS returns. Gen-TDS software from SAG Infotech is a very highly reliable and efficient software solution for filing your online TDS returns. You can correct TDS returns easily and accurately with a comprehensive set of tools.
This guide helps you ensure that you can e-file your tax returns accurately and on time, avoiding any unnecessary penalties, deductions or fines. With the user-friendly and advanced interface features, the software can make the full process of filing a TDS return, making it a useful preferred choice for your companies and individuals alike. Whether you are an owner of a small business or a seasoned accounting professional, the software will help you to e-file your online TDS returns quickly, securely, and without any hassle.
Author Bio
