Section 200A | Processing of statements of TDS

CA.R.S.KALRA | Last updated: 15 March 2021

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Section 200A outlines the procedure for processing statements of tax deducted at source (TDS). It details how sums deductible are computed, taking into account arithmetical errors and apparent incorrect claims. The section also covers the calculation of interest and fees, and how the final amount payable or refundable to the deductor is determined after adjustments.

"200A. Processing of statements of tax deducted at source.-

(1) Where a statement of tax deduction at source has been made by a person deducting any sum (hereafter referred to in this section as deductor) under Section 200, such statement shall be processed in the following manner, namely:-

(a) the sums deductible under this Chapter shall be computed after making the following adjustments, namely:-

any arithmetical error in the statement; or
an incorrect claim, apparent from any information in the statement;

(b) the interest, if any, shall be computed on the basis of the sums deductible as computed in the statement;

(c) the sum payable by, or the amount of refund due to, the deductor shall be determined after adjustment of amount computed under clause (b) against any amount paid under section 200 and section 201, and any amount paid otherwise by way of tax or interest;

(d) an intimation shall be prepared or generated and sent to the deductor specifying the sum determined to be payable by, or the amount of refund due to, him under clause (c); and

(e) the amount of refund due to the deductor in pursuance of the determination under clause (c) shall be granted to the deductor :

Provided that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the statement is filed.

Explanation.- For the purposes of this sub-section, "an incorrect claim apparent from any information in the statement" shall mean a claim, on the basis of an entry, in the statement-

Section 200A: Processing TDS Statements Explained

of an item, which is inconsistent with another entry of the same or some other item in such statement;
in respect of rate of deduction of tax at source, where such rate is not in accordance with the provisions of this Act;

(2) For the purposes of processing of statements under sub-section (1), the Board may make a scheme for centralised processing of statements of tax deducted at source to expeditiously deter- mine the tax payable by, or the refund due to, the deductor as required under the said sub-section."

Where a statement of tax deduction at source or a correction statement has been made by a person deducting any sum (hereafter referred to in this section as deductor) under section 200, such statement shall be processed in the following manner:

the sums deductible under this Chapter shall be computed after making any arithmetical error or an incorrect claim, apparent from any information in the statement;
the interest, if any, shall be computed on the basis of the sums deductible as computed in the statement;
the fee, if any, shall be computed in accordance with the provisions of section 234E;
the sum payable by, or the amount of refund due to, the deductor shall be determined after adjustment of the amount computed under clause (b) and clause (c) against any amount paid under section 200 or section 201 or section 234E and any amount paid otherwise by way of tax or interest or fee;
an intimation shall be prepared or generated and sent to the deductor specifying the sum determined to be payable by, or the amount of refund due to, him under clause (d); and
the amount of refund due to the deductor in pursuance of the determination under clause (d) shall be granted to the deductor.

Provided that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the statement is filed.

FAQ :

Section 200A details the process for handling statements of tax deducted at source (TDS) submitted by deductors.

Statements are processed by computing deductible sums, adjusting for arithmetical errors or apparent incorrect claims, calculating interest and fees, and determining the final amount payable or refundable to the deductor.

This refers to a claim that is inconsistent with another entry in the statement or where the rate of tax deduction is not in accordance with the Act.

An intimation will be sent to the deductor specifying the amount payable or refundable. However, this intimation must be sent within one year from the end of the financial year in which the statement was filed.

Yes, the Board may establish a scheme for centralised processing of TDS statements to expedite the determination of tax payable or refunds due.