If you have made a payment to a seller and failed to deduct TDS (Tax Deducted at Source) as required by Indian tax regulations, you can rectify the mistake by following these steps:
The first step is to calculate the TDS amount that should have been deducted from the payment made to the seller.
In addition to the TDS amount, you may be liable to pay interest for the period during which the TDS was not deducted. Interest is typically calculated at the rate of 1% per month (or part thereof) from the date on which the TDS should have been deducted until the date of actual deduction.
Once you have calculated the TDS amount along with the interest, deposit the total sum to the government treasury using the appropriate challan.
After depositing the TDS amount, file the TDS return using Form 26Q or Form 27Q, depending on whether the payment was made to a resident or non-resident seller, respectively.
Once the TDS return is filed and processed by the Income Tax Department, issue a TDS certificate to the seller.
If you have already filed TDS returns without deducting TDS, you can rectify the error by filing a correction statement using the TRACES portal within the prescribed time limit.
If the TDS return was filed late, you may be liable to pay a late filing fee. Ensure that any applicable late filing fee is paid along with the corrected TDS return.
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How to Rectify the Mistake of Not Deducting TDS from the Payment Made to the Seller?
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2024-04-15T11:43:25+00:00 2024-04-15T11:43:26+00:00Comment
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