Online tds return
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 May 2014
I have filled the TDS correction return(challan correction) of our client today.
No fees was paid for the return & same was submitted.
now return status shown as "Processed With Defaults"
My question is that - is it compulsory to submit the fee for the return?,& Y status is shown as "Processed With Defaults"
No fees was paid for the return & same was submitted.
now return status shown as "Processed With Defaults"
My question is that - is it compulsory to submit the fee for the return?,& Y status is shown as "Processed With Defaults"
20 May 2014
if the return was filed in time, 234E wont apply. but if there are other defaults like short deduction, interest on late deduction/deposit etc, payment is to be made with respect to such defaults...
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 May 2014
Thank u for the reply Sir.
Actually i have filed the return of Q3 in which i wrongly fill the amount of interest in fee column & demand of the same int. raised.
now i have filed the challan correction return online & same was processed with default for the same interest amount. Y demand for interest is raised again?
Actually i have filed the return of Q3 in which i wrongly fill the amount of interest in fee column & demand of the same int. raised.
now i have filed the challan correction return online & same was processed with default for the same interest amount. Y demand for interest is raised again?
09 August 2024
When dealing with TDS (Tax Deducted at Source) corrections, especially when a challan correction return is filed, there are specific procedures and implications to be aware of. Here's a detailed response to your queries:
### **1. Is It Compulsory to Submit the Fee for the Return?**
For TDS returns, there is generally no fee for filing or correcting the return itself. However, if there is a demand for interest or penalty due to late payment or incorrect filing, you must pay these amounts as per the demand raised by the tax authorities.
- **Challan Correction**: When you file a correction for a challan, you are correcting the details of the tax payments made. This correction does not itself require a fee unless specified otherwise in certain cases.
### **2. Why Is the Status Shown as "Processed With Defaults"?**
The status "Processed With Defaults" indicates that the correction return has been processed but with some issues or discrepancies that need to be addressed. The common reasons for this status include:
- **Incorrect Details**: If there were errors in the original or correction return, such as incorrect amounts or misentered data, the system may flag this as a default.
- **Pending Interest or Penalty**: If the correction return has not addressed outstanding interest or penalty amounts correctly, the system may continue to show a default.
### **3. Why Is a Demand for Interest Raised Again?**
Given your situation, here’s why you might see a demand for interest even after filing a correction:
- **Original Error**: If the initial TDS return contained incorrect details (e.g., incorrect interest amount in the fee column), a demand for interest may be raised for the period in question.
- **Challan Correction**: When you filed the challan correction return, if the correction did not fully address the previous error (such as by not correcting the interest or penalty details), the demand for interest would still be valid.
- **System Processing**: The TDS system might require a specific correction or payment to clear the demand. If the system still detects discrepancies, it will continue to raise the demand for interest or penalties.
### **Steps to Resolve the Issue:**
1. **Verify Correction Details**:
- Ensure that all the details in your correction return are accurate and that you have correctly addressed the errors from the original return.
2. **Check Demand Details**:
- Review the demand notice carefully to understand what amounts are being charged and why. This will help you determine if there’s a need to pay additional interest or penalties.
3. **Pay Outstanding Amounts**:
- If there’s an outstanding demand for interest or penalties, ensure that these amounts are paid to the tax authorities.
4. **Refile Correction if Necessary**:
- If the initial correction did not address all issues, you might need to file another correction return or correct the details further.
5. **Consult Tax Authorities**:
- Contact the TDS/CPC (Centralized Processing Center) for clarification on the demand and the status of your correction return. They can provide guidance on what further steps need to be taken.
6. **Ensure Timely Payments**:
- Make sure all payments are made timely and accurately to avoid further penalties or defaults.
### **Summary**
- **Fee for Correction Return**: Generally, no fee is required for filing or correcting a TDS return, but outstanding interest or penalties need to be settled.
- **Processed With Defaults**: Indicates there are still issues with the return that need to be addressed.
- **Demand for Interest**: Likely due to unresolved discrepancies or outstanding amounts related to the initial incorrect return.
For precise guidance, always refer to the official TDS website or consult with a tax professional.
### **1. Is It Compulsory to Submit the Fee for the Return?**
For TDS returns, there is generally no fee for filing or correcting the return itself. However, if there is a demand for interest or penalty due to late payment or incorrect filing, you must pay these amounts as per the demand raised by the tax authorities.
- **Challan Correction**: When you file a correction for a challan, you are correcting the details of the tax payments made. This correction does not itself require a fee unless specified otherwise in certain cases.
### **2. Why Is the Status Shown as "Processed With Defaults"?**
The status "Processed With Defaults" indicates that the correction return has been processed but with some issues or discrepancies that need to be addressed. The common reasons for this status include:
- **Incorrect Details**: If there were errors in the original or correction return, such as incorrect amounts or misentered data, the system may flag this as a default.
- **Pending Interest or Penalty**: If the correction return has not addressed outstanding interest or penalty amounts correctly, the system may continue to show a default.
### **3. Why Is a Demand for Interest Raised Again?**
Given your situation, here’s why you might see a demand for interest even after filing a correction:
- **Original Error**: If the initial TDS return contained incorrect details (e.g., incorrect interest amount in the fee column), a demand for interest may be raised for the period in question.
- **Challan Correction**: When you filed the challan correction return, if the correction did not fully address the previous error (such as by not correcting the interest or penalty details), the demand for interest would still be valid.
- **System Processing**: The TDS system might require a specific correction or payment to clear the demand. If the system still detects discrepancies, it will continue to raise the demand for interest or penalties.
### **Steps to Resolve the Issue:**
1. **Verify Correction Details**:
- Ensure that all the details in your correction return are accurate and that you have correctly addressed the errors from the original return.
2. **Check Demand Details**:
- Review the demand notice carefully to understand what amounts are being charged and why. This will help you determine if there’s a need to pay additional interest or penalties.
3. **Pay Outstanding Amounts**:
- If there’s an outstanding demand for interest or penalties, ensure that these amounts are paid to the tax authorities.
4. **Refile Correction if Necessary**:
- If the initial correction did not address all issues, you might need to file another correction return or correct the details further.
5. **Consult Tax Authorities**:
- Contact the TDS/CPC (Centralized Processing Center) for clarification on the demand and the status of your correction return. They can provide guidance on what further steps need to be taken.
6. **Ensure Timely Payments**:
- Make sure all payments are made timely and accurately to avoid further penalties or defaults.
### **Summary**
- **Fee for Correction Return**: Generally, no fee is required for filing or correcting a TDS return, but outstanding interest or penalties need to be settled.
- **Processed With Defaults**: Indicates there are still issues with the return that need to be addressed.
- **Demand for Interest**: Likely due to unresolved discrepancies or outstanding amounts related to the initial incorrect return.
For precise guidance, always refer to the official TDS website or consult with a tax professional.
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