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Traces notice for short deduction of tds on salary

Veerendra J S (Professional Officer) (28 Points)

18 April 2014

Dear Sir

Our Client Recd a Notice from TRACES Regarding Short Deduction of TDS on Salary

as per our calculation of IT for the AY 2014-2015 we have deducted TDS on Salary and Submitted e-TDS statements for 24Q4 - 2013-2014.

In Justification Report Department has calculated the Tax more than TDS made.

we are not understanding how the IT Calculated by the System in TRACES

herewith i am attaching TRACES Justificaiton Report

Kindly advice how respond to the notice

Veerendra JS

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3 Replies

manoj (student) (5205 Points)
Replied 18 April 2014

THIS MAY BE DUE TO DATE DIFF CONTACT YOUR A.O.

saurabh shahu (Audit Assistant) (142 Points)
Replied 19 July 2014

Dear Sir,

As per verfication of Justification report it is seems that the Systems has considered the Education cess & Higher Education cess before Adjustment of Rebate U/s. 87A.hence the system Calculated the education cess before Adjustment of Rebate. although it is wrong correct calculation of Tax .... Basic 10000

Less: Rebate 2000

Balance: 8000

Add: Education Cess 240

Total 8240.00

V Prabhakara Rao (Assistant Manager) (106 Points)
Replied 21 July 2014

Dear Mr. Veerendra

What you have filed is correct. Even we did the same. The issue of Notice is because of miscaluculation of 87A rebate by TRACES. I am providing the comparison of calculations:

Descripttion		As per Your Return	TRACES
1) Taxable Income		392078	392078
2) Basic Exemption		200000	200000
3) Net Taxable Income	(1 - 2)	192078	192078
4) Tax on Total Income	3 x 10%	19208	19208
5) Rebate under Section 87A		2000
6) Tax Payable after Rebate	(4 - 5)	17208	19208
7) Surcharge @ 10%	NA
8) Education Cess @ 3%	7 x 3%	516	576
9) Tax payable	(6 + 8)	17724	19784

10) Rebate under Section 87A			2000
11) Tax payable	(9 - 10)	17724	17784