Section 200a
This query is : Resolved
12 August 2011
Sir/Madam,
We have received a demand note from I-tax department stating to deposit a sum of Rs.38662/- within 10 days under section 200A as interest set off for late payment of salary statement.
Kindly advice us what to do now???
Regards
Kamal J Kakoty
We have received a demand note from I-tax department stating to deposit a sum of Rs.38662/- within 10 days under section 200A as interest set off for late payment of salary statement.
Kindly advice us what to do now???
Regards
Kamal J Kakoty
12 August 2011
Pl check whether the TDS on salaries has been deposited late or any interest for which your company was liable at the time of depositing the TDS amount, but not paid. If the things are correct on your part explain the situation to the AO and proceed accordingly.
13 August 2011
Thank you very much.
27 August 2011
Sir,
what challan should use to deposit the interest under section 200a
Kamal J kakoty
what challan should use to deposit the interest under section 200a
Kamal J kakoty
23 July 2025
Section 200A - Interest on Late Payment of TDS
Section 200A of the Income Tax Act, 1961, deals with the processing of TDS returns by the Income Tax Department. Under this section, if there is any delay in the payment of TDS or filing of TDS returns, the department may charge interest under Section 234A, 234B, or 234C and may levy fees as per the provisions.
In your case, since you have received a demand note for the sum of Rs. 38,662, this likely represents interest charged by the department due to the late deposit of TDS on salaries.
Steps to Proceed:
Verify the Demand:
Ensure that the TDS payments were indeed made late or the TDS returns were filed late. The interest amount in your demand could be because of the delay in depositing the TDS or in filing the TDS returns.
Deposit the Interest:
To pay the interest amount, you'll need to use the challan for TDS payments.
Challan to use: Challan 281.
Challan 281 is used to deposit TDS and TCS (Tax Collected at Source), and also for interest and penalties for TDS defaults.
Payment Details:
When making the payment using Challan 281, choose the following details:
Tax applicable: TDS on Salary (Section 192) or other applicable sections depending on the type of TDS.
Nature of Payment: Choose the appropriate section, like "Interest on late payment of TDS under Section 200A."
Additional Information:
Interest for late payment: According to Section 234A, 234B, and 234C, interest for late payment of TDS is calculated as:
1% per month or part of the month on the outstanding amount from the due date of payment until the actual date of payment.
File an Appeal (if required):
If you believe the demand is incorrect or you have sufficient evidence that the TDS payment was made timely, you can approach the Assessing Officer (AO) and explain the situation.
Appeal: If necessary, you can file an appeal against the demand, providing the correct details and documentation of your payments.
Summary:
Verify the cause of the demand for Rs. 38,662.
Use Challan 281 to deposit the interest amount under Section 200A.
Ensure to use the correct section code and nature of payment while making the payment.
Section 200A of the Income Tax Act, 1961, deals with the processing of TDS returns by the Income Tax Department. Under this section, if there is any delay in the payment of TDS or filing of TDS returns, the department may charge interest under Section 234A, 234B, or 234C and may levy fees as per the provisions.
In your case, since you have received a demand note for the sum of Rs. 38,662, this likely represents interest charged by the department due to the late deposit of TDS on salaries.
Steps to Proceed:
Verify the Demand:
Ensure that the TDS payments were indeed made late or the TDS returns were filed late. The interest amount in your demand could be because of the delay in depositing the TDS or in filing the TDS returns.
Deposit the Interest:
To pay the interest amount, you'll need to use the challan for TDS payments.
Challan to use: Challan 281.
Challan 281 is used to deposit TDS and TCS (Tax Collected at Source), and also for interest and penalties for TDS defaults.
Payment Details:
When making the payment using Challan 281, choose the following details:
Tax applicable: TDS on Salary (Section 192) or other applicable sections depending on the type of TDS.
Nature of Payment: Choose the appropriate section, like "Interest on late payment of TDS under Section 200A."
Additional Information:
Interest for late payment: According to Section 234A, 234B, and 234C, interest for late payment of TDS is calculated as:
1% per month or part of the month on the outstanding amount from the due date of payment until the actual date of payment.
File an Appeal (if required):
If you believe the demand is incorrect or you have sufficient evidence that the TDS payment was made timely, you can approach the Assessing Officer (AO) and explain the situation.
Appeal: If necessary, you can file an appeal against the demand, providing the correct details and documentation of your payments.
Summary:
Verify the cause of the demand for Rs. 38,662.
Use Challan 281 to deposit the interest amount under Section 200A.
Ensure to use the correct section code and nature of payment while making the payment.
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