Q1- What should I do in case of Late Payment / Late Deduction intimation received?
Ans:-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.
Q2- What is the procedure of calculating interest on Late Deduction?
Ans:-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.
Correct Calculation
No. of months in Defaults=1 i.e., 3-Mar-2012 to 4-Mar-2012
10000*1%*1(Months) =100.00
Q3-How much amount do I pay for intimation received on Short Deduction with provisional interest?
Ans:-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.
Q4-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?
Ans:-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'.
Q5-I have received an intimation of Short Deduction u/s 194C however deductee is a transporter what should I do?
Ans:- 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'.
Q6-I have received an intimation of Short Deduction however reported deductee has a lower rate certificate what should I do?
Ans:-You can file a correction statement and raise 'A' flag for respective deductees, in column no. 326 (24Q) & column no. 424 (26Q) for 'Reason for no / lower deduction'.
Q7-While filing a correction statement I quoted Late Deduction Interest amount in 'Other' column. How can I rectify?
Ans:-'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.
Q8-What should I do in case of Short Payment / Short Deduction intimation received?
Ans:-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.
Q9-How much amount do I pay for intimation received on Short Payment with Provisional Interest?
Ans:-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.
Q10-What is the procedure of calculating interest on Late Payment?
Ans:-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:
Calculation
No. of months in Defaults = 3 i.e., Mar-12 to May-12
4000*1.5%*3(Months) =180.00
Q11-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?
Ans:-Short Payment defaults may be raised due to challan mismatch. You are requested to check the details filed in statement corresponding to the challan.
Q12-Is the rounding off under section 288B allowed at the transaction level?
Ans:-The system will not allow rounding off under section 288B at the transaction level but at the statement level.