In TDS (Tax deducted from source) returns, corrections are often a run-of-the-mill procedure. But why do we need these corrections?
That could happen for the following reasons:
- Wrong PAN number updated in TDS statement
- Abnormal deduction of TDS amount
- Abnormal utilization of Challan amount
- Mentioning wrong details in the return
Once the corrections are figured out, it doesn’t take long for the correcting steps to fall in place. The corrections can be done only through a few steps.
- Check for any defaults raised under various categories
- If you find the defaults, request for reports and files for the correction in return
- Online and offline mode of correction in the returns
What is TDS Return?
Before knowing the different types of corrections in TDS Returns, here is the brief information about TDS Return. TDS is a tax deducted at source by the employers or other deductors from the amount payable to the employee or other deductee. The withheld amount of TDS is deposited with the government by the deductor along with a quarterly statement of details. This quarterly statement is called TDS Returns.
The following are the 4 different types of TDS Returns
|Type of TDS Return||Description|
|Form 24Q||TDS Details from Salaries|
|Form 26Q||TDS Details of payments other than salaries|
|Form 27Q||TDS details from interest, dividends and other related amounts|
|Form 27EQ||Statement of Tax Collected at Source|
Form 15G and Form 15H can help to reduce the amount of TDS payable.
Now that we know what are different types of TDS Returns along with how to correct the errors in TDS Returns, let’s take a look at the types of TDS corrections.
Types of TDS Returns Corrections
The types of corrections depend on the changes that the deductor wants on the regular return. There are, essentially, 6 types of Correction Returns.
The C1 correction is applicable for all corrections done in the deductor details except for the TAN number. If the PAN number is wrong, or the deductor’s name or the address gets messed up, the C1 correction type is generated.
Applicable for corrections in deductor details or challan details. C2 correction is generated when the Challan Serial number is submitted wrongly. However, when C2 correction occurs, it includes C1 correction, as well.
The C3 type of correction is meant for any kind of correction in deductor details or challan details or the deductee details too leaving the PAN number aside. Let’s say an Education Cess has been mentioned incorrectly in particular detail, it will promptly generate a C3 correction. The deduction can also be made for other details like the TDS or the referring challan.
The C4 correction applies to the corrections in salary details. It’s applicable only if there’s a correction required in the 4th quarter statement of Form 24Q. If the Gross Salary or overall Salary Record is wrongly updated, this correction can be generated.
This correction is needed when there’s something wrong with the deductee’s PAN number. If the PAN is wrongly put in a salary detail, there will be a generation of C5 correction. The PAN can also be updated through Form 26Q, Form 27Q, and Form 27EQ.
For mistakes regarding a new challan addition or any deductions related to that challan, the C9 correction is generated. It is the only correction that has to be done online. If a new deduction is left out for some reason, there will be a new deduction record that generates the C9 correction type.
The corrections in TDS Returns are a common occurrence. C1, C2, C3, C4, and C5 are usually updated in a single file. To correct the wrongs, the deductor needs to contact the Assessing Officer concerned with the mistake. You can check for the corrections online after three days of filing the return. The TAN and receipt number is required to check that out.