What should I do in case of Late Payment / Late Deduction intimation received?
The default amount 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 detail. While filing correction, fill up 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. Mention default interest amount in second last interest column in challan detail of conso file. (Refer e-tutorial - https://www.tdscpc.gov.in/en/download-nsdl-conso-file-etutorial.html).
Note: In case of paper return, interest amount should be mentioned in annexure.
What is the procedure of calculating interest on Late Payment?
Deposit late payment interest @ 1.5% per month or part of the month from the date of deduction till date of deposit.
Procedure for calculating Late Payment:
No. of months in Defaults = 3 i.e., Mar-12 to May-12
What is the procedure of calculating interest on Late Deduction?
You have to deposit late deduction interest @ 1% per month or part of the month from the date of payment / credit to deductee till date of deduction.
Procedure for calculating Late Deduction:
No. of months in Defaults=1 i.e., 3-Mar-2012 to 4-Mar-2012
While filing a correction statement I quoted Late Deduction Interest amount in 'Other' column. How can I rectify?
'Deductor can file a correction statement, delete the amount from 'Other' column and mention interest amount in interest 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. You also need to mention demand amount of interest in second last column of interest in challan details.