TDS :- Short Payment or Short Deduction of TDS

Saturday, February 22, 2014 | comments

Short Payment

How much amount do I pay for intimation received on Short Payment with Provisional Interest?

Provisional interest is calculated till the date of processing of statement. Deposit principal amount of short payment along with interest @ 1.5% per month from date of deduction till date of deposit and file the correction for the same.


I have received an intimation u/s 200A with the demand raised due to short payment. I have made the payment within the prescribed time-limit. Now what should I do?

Short Payment defaults may be raised due to challan mismatch. You are requested to check the details filed in statement corresponding to the challan


Is the rounding off under section 288B allowed at the transaction level?

The system will not allow rounding off under section 288B at the transaction level but at the statement level.


Short Deduction

How much amount do I pay for intimation received on Short Deduction with provisional interest?

Deposit principal amount of short payment along with interest @ 1 % per month from date of deduction till date of deposit and file the correction for the same.


I have received an intimation of Short Deduction but payment amount is not eligible for TDS as the amount is below the threshold limit. What should I do?

You can file correction statement and raise threshold flag ('Y') in column no. 326 (24Q), column no. 424 (26Q), column no. 729 (27Q) and column no. 680 (27EQ) for 'Reason for no / lower deduction'.


I have received an intimation of Short Deduction u/s 194C however deductee is a transporter what should I do?

You can file correction statement and raise transporter flag ('T') for the particular deductee, who is a transporter, in column no. 424 (26Q) for 'Reason for no / lower deduction'.


What should I do in case of Short Payment / Short Deduction intimation received?

The default amount (along with the interest applicable till the date of payment of short payment default) will have to be deposited through challan no. 281 by ticking minor head 400. Download conso file from TRACES for filing correction and update the challan details. While filing correction fill up principal amount in column no. 402 in Form 26Q, column no. 302 in Form 24Q, column no. 702 in Form 27Q and column no. 652 in Form 27EQ and interest amount in column no. 403 in Form 26Q, column no. 304 in Form 24Q, column no. 705 in Form 27Q and column no. 655 in Form 27EQ. After adding the new challan, you will have to add new deductee rows for which short payment / short deduction has been raised and map to the corresponding challan.


      Finally it is easy to remember that interest @ 1.50% p.m.  will be charged in Payment either Short Payment or Late Payment and interest @ 1.00% p.m. will be charged in deduction either short deduction or late deduction.

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