LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Tds interest paid short

Jyothis (Article) (1127 Points)

27 October 2015

Regular Statement filed is processed with defaults and / or PAN errors u/s 200A

1.For Q2 2015-16,tds interest payable was Rs.318 & company only Rs.200 & filed tds return.

Now a order is raised stating to pay balance 198+2 round off.

Is company liable to revise return & show the actual tds interest in return for q2 2015.

Or can company show balance interest paid in Q3 2015

Reply
Follow
Share

12 Replies

Miss Rinkal (Student) (1304 Points)
Replied 27 October 2015

You need to revise the return as the tds pertains to q2 of 2015-16. So cannot be paid in q3

1 Like

Prashant Hegde (Professional) (262 Points)
Replied 27 October 2015

You can do online correction by adding additional interest challan in your traces login without revise the return.

1 Like

Miss Rinkal (Student) (1304 Points)
Replied 27 October 2015

Yes I agree with Prashant Hegde. Online correction can also be done by adding challan details to the statement

1 Like

Jyothis (Article) (1127 Points)
Replied 28 October 2015

Pls explain the steps for online correction.

Jyothis (Article) (1127 Points)
Replied 28 October 2015

Interest as per order is not yet paid.So if we pay at the earliest & can we correct tds interest without revising Q2 tds e-filing.

Or is there any time limit for correction.

Miss Rinkal (Student) (1304 Points)
Replied 28 October 2015

Please find attached the file for your reference a detailed procedure for correction of tds return

Attached File : 131263 20151028061130 e tutorial online correction challlan correction.pdf downloaded: 179 times

1 Like

Prashant Hegde (Professional) (262 Points)
Replied 28 October 2015

You can refer below link and there add challan to statement option will helpful for you. https://contents.tdscpc.gov.in/en/e-tutorial-deductor.H T M L# There is time limit for payment but every month 1.5% interest will added to that amount and as per act you have to issue TDS certificate for Q2 within 30th of October. So delay may leads to non-compliance of act.

1 Like

Miss Rinkal (Student) (1304 Points)
Replied 28 October 2015

What is Online Correction?

TRACES has provided the functionality of “Online Correction” where deductor can perform correction of TDS/TCS statements online. Following are the various facilities available through online correction:

View default summary
Rectifying challan mismatch cases
Addition of new challan to the statement
Pay 220/interest/levy
Add or Delete Salary Detail
Rectifying statement challan information
PAN Correction
Correction in Personal Information
Add/Modify deductee detail
Movement of deductee rows

How to apply for Online Correction?

Login into TRACES as a deductor and raise the request for online correction under ‘Default’ Menu. For more information please refer E-tutorials.

Is it mandatory to have registration of Digital Signature on TRACES for all type of online correction ?

Digital Signature Matrix for functionalities through online correction

I have filed a paper return, and want to make online correction through TRACES. How should I proceed?

Online correction functionality on TRACES will not be available in case of paper return .

What will the deductor do if the request for correction is rejected by TDSCPC?

Deductor has to check the rejection reason by selecting ‘Track Correction Request under ‘Default’ from main menu. Then select the request number and click on hyperlink ‘Rejected’ under the heading ‘Status’. Once the user takes the necessary action on resolution of rejection reason, he can resubmit the online correction request through TRACES.

Is it necessary for a sub-user to submit online Correction?

Yes, after making the online correction, sub- user will submit the corrections to admin user for final submission to TDSCPC. Sub-user will not be able to proceed further without the intervention of Admin User.

I have received the demand for late fee and paid the same, now how can I file online correction for the same through TRACES?

Login into TRACES, under ‘Defaults’ raised the request for online correction. Once request number is generated and request status is in available status, user can make the online correction by choosing the option ‘Pay late fee/ 220/ interest’. For more detail refer e-tutorial.

My Digital Signature Certificate (DSC) is already registered on TRACES. However, when I am trying to submit online correction, system does not allow me to proceed. What is the reason?

You need to clear the cookies and reload the website. If issue still persists check the browser being used. Internet Explorer 7,8 or 9, Google Chrome and Mozilla Firefox 17 & above are compatible browser for TRACES.

What all information can be changed in Personal Online Correction option?

By choosing ‘personal information’ option from ‘Type of correction’ drop down online correction option, you can edit communication detail of TAN as per statement and name & communication detail of authorised person as per statement.

Can I cancel the online correction request?

Yes, before submitting the correction for processing, you can cancel the request under ‘correction ready for submission’ where you will get an option to ‘cancel statement’. By clicking on this, correction will not be submitted to TDSCPC and will be cancelled.

Can I submit multiple corrections with one request number?

Yes, you can do multiple corrections with one request number for the statement pertaining to same financial year, quarter and form type.

Can Deductor do online correction for TCS?

Yes, deductor can file online correction for both TDS and TCS.

Can salary details in annexure 2 be edited through online correction?

User can update only PAN of the employee in annexure 2. For correction in other fields, user can delete the existing deductee row and/or add new deductee row.

Can Deductor change the category of Deductor through Online Correction?

No, deductor cannot change the “category of deductor” through online correction.

1 Like

Miss Rinkal (Student) (1304 Points)
Replied 28 October 2015

And there is no time limit for correction of tds return.

Miss Rinkal (Student) (1304 Points)
Replied 28 October 2015

However if tds certificate is not issued on time I.e 15 days from due date of filing the return then penalty provisions may attract which is Rs 100/- per day of default.

1 Like

Jyothis (Article) (1127 Points)
Replied 28 October 2015

So delay in downloading tds certificate will atract penalty u/s 272A.

My doubt in general is allowance/disallowance of such penalty/interest under Income tax on tax computation

1.Interest on late payment of tds/service tax/income tax/advance tax

2.Penalty u/s 272A on delay in dowloading tds certificate

My understanding is disallowance only attracts on payments in nature of violation of law.

So can i conclude disallowance will attract only on delay in income tax return filing/payment of income tax and others payments on violation of any law.

That is there is no disallowance on tds interest,service interest,tds return delay penalty of tds,service tax,

Miss Rinkal (Student) (1304 Points)
Replied 29 October 2015

Any kind of fines, penalties or Interest on income tax is a disallowed expenditure.

Interest on late payment of tds, income tax and advance tax will be disallowed u/s 40(a)(ii) as it forms part of income tax.

However interest on late payment of service tax and vat will be allowed as service tax and vat are business expenditure and interest charged is merely due to compensating loss of interest to the govt as a result of late payment

The same analogy could not be applied in case of income tax as well. Since as per sec 40(a)(ii) specifically mentions "any sum". Hence they are disallowed. Needless to say tds and advance tax are just a form or part of income tax

Regarding penalty u/s 272A, it is not contravening the law or violation of law but due to non compliance.

There is a difference in both the terms. Contravening the law is intentionally offending the law. Whereas non compliance can happen due to ignorance of the law or unintentional in nature.

However as already mentioned, all fines, penalties or interest expense related to income tax will be disallowed.

Hence not all penalties tantamount to disallowances. Here I am trying to explain wrt vat and service tax. If it is due to non compliance then it will be allowable but if penalty is levied due to contravention of law then it will be disallowed

Hope you are now clear with the doubts

1 Like