It is time consuming to solve TDS errors while filling TDS return. In this post, we have given most common TDS errors and their solutions.
Most common TDS Errors and their solutions:
Tax Deducted at Source (TDS) in India is a tax collection method. In simple terms it is rate prescribed which is mandatory to be deducted and paid by the persons responsible for making payments.
A person responsible for deducting and paying TDS has to make the below mandatory compliance.
- TDS payment has to be made for each month: by 7th of following month
&
- File TDS return providing all TDS deducted in the respective quarter: by 31st of every month following the quarter.
In the below discussion, we are talking about all the errors which are made while computing TDS and mistakes which happens while filing for TDS returns and their respective solutions.
Tax deduction Account Number (TAN) not updated (Error Code 2027):
Error: Tax Deduction and Collection Account Number (TAN) is a 10 digit alphanumeric number issued to persons who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961. Thus in case the TAN is incorrectly mentioned or not updated in the system, any payment made by the assesse would not reflect in the company’s tax returns and the same would not be validated by tax department.
Solution: One must update and update the TAN properly in the department portal and in all the returns. In case one does not have TAN then the company must apply for the same and obtain the number.
Wrong Challan details (Error code 3021):
Error: In TDS return, TDS Payment challan contains all the major details viz.,
- Date of payment
- Amount of payment of tax
- Section under which the tax is deposited
- Bank code through which the payment is made.
These fields are important while filing TDS return and if these details are not properly entered then the return would show mismatch data and would not form a valid return.
Solution: One must enter all challan details properly. If the return is rejected due to wrong or mismatch details then one must revise the respective return with correct details and file again.
Wrong Permanent Account Number (PAN) (Error Code 2030):
Error: PAN is a unique 10-character alpha-numeric identifier, issued to all judicial entities which serve as an important proof of identification for the tax payer. In case PAN of the assesse is wrongly mentioned then the amount of tax paid would not be shown under his/ her name which will ultimately amount to non-payment of tax by the assesse.
Solution: One must enter proper PAN, If PAN is incorrectly mentioned in the return then the assesse has to revise the return by providing correct and accurate PAN details. In case assesse doesn’t have a PAN then he or she must apply for the same.
Wrong Section (Error code 3043):
Error: TDS is paid section wise i.e. 194C for TDS under contractor, 194I TDS on rent, 194A TDS on interest. Thus if TDS section is changed then the amount of TDS paid won’t reflect properly and would show a mismatch in the statement.
Solution: One must enter all challan details properly. If the return is rejected due to wrong or mismatch details then one must revise the respective return with correct details and file again.
Wrong Address or email address (Error code 2043 and 2053):
Error: Tax department requires details for the deductor viz., Name, address and email address of the concerned person responsible for deducting. While filing TDS return, one must provide correct and valid and correct address as well as email address. If the same is not given the return would be rejected.
Solution: One must enter all details properly. If the return is rejected due to wrong or mismatch details then one must revise the respective return with correct details and file again.
Date of Deposit must be same as Date of Bank Challan No (Error code 4212)
Error: In TDS return, date of deposit of TDS made must be same as challan date given by bank. If challan details are not properly entered the same will show mismatch data.
Solution: One must enter all details properly. If the return is rejected due to wrong or mismatch details then one must revise the respective return with correct details and file again.
Mismatch TDS amount for deductor and deductee tab (Error code 3066):
Error: The sum of TDS, total tax deposited amount as per deductee annexure must match the total of tax deposit amount as per Challan/Transfer Voucher number. In case the same doesn’t match the file won’t be uploaded on tax portals
Solution: One must enter all details properly. If the return is rejected due to wrong or mismatch details then one must revise the respective return with correct details and file again.
Correct Income Details (Error Code 3048):
Error: In TDS return, the TDS actual deposited and paid must match TDS to be deducted on specified income under respective section and respective rates.
Solution: One must enter all details properly. If the return is rejected due to wrong or mismatch details then one must revise the respective return with correct details and file again.
Incorrect responsible person details (Error code 2045, 2047, 2049, and 2050, 2053):
Error: Under TDS return, all details for a representative of the company or an organization must be submitted. Thus these details form important part for completion of the return.
Solution: One must check and enter proper details. In case there are any changes then one must enter the updated details for the respective responsible person viz., name, address, contact information etc.
Incorrect Deductor type (Error Code 2076):
Error: In TDS return, one must properly fill in the deductor type viz., company, individual, trust etc., .
Solution: One must check and enter proper details. In case there are any changes then one must enter the updated details
Invalid Assessment Year / Financial Year (Error Code 2034) :
Error: Financial year is the year in which tax was paid and Assessment year is the year in which tax is processed and filed. Thus the above details should be properly entered and completed.
Solution: One must check and enter proper details. In case there are any changes then one must enter the updated details
I hope this post regarding TDS errors and solutions helped you in some manner.Do not forget to use latest FVU and RPU version while filling TDS return. You can contact customer care for help with available numbers here.