Short deduction of tds
This query is : Resolved
30 September 2013
Hello.
I have just recently joined a company, in which will going through TDS filing, company has short deducted TDS of a party. I have already filed revised TDS returns of all Q twice. Is there any declaration which I can take from party were in he can state that the balance tax is being paid by the party. And thereby the liability of my company can be reduced.
Please help. urgent as it is pertaining to last year FY 12-13.
I have just recently joined a company, in which will going through TDS filing, company has short deducted TDS of a party. I have already filed revised TDS returns of all Q twice. Is there any declaration which I can take from party were in he can state that the balance tax is being paid by the party. And thereby the liability of my company can be reduced.
Please help. urgent as it is pertaining to last year FY 12-13.
30 September 2013
Nothing is required if you have paid the balance tds and filed revised return the credit of same can be seen in party's form 26 as.. nothing needs to be done now..
30 September 2013
Arun.
I have not paid the balance TDS but in past the return is being already revised for 2 times and it is pertaining to 2Q of last year.
I have not paid the balance TDS but in past the return is being already revised for 2 times and it is pertaining to 2Q of last year.
25 July 2025
Got it — so the company short deducted TDS and already filed revised TDS returns twice, but the balance TDS hasn't been paid yet?
Here’s what you can do:
No declaration from party will relieve your company of TDS liability.
The responsibility to deduct and deposit TDS on time is on the deductor (your company), regardless of whether the deductee pays their tax or not.
Deposit the short deducted amount ASAP.
Since the balance TDS hasn't been paid, the company must deposit the remaining TDS amount immediately with interest and any applicable penalty for late deduction/payment.
File a revised TDS return again after deposit.
After payment, file the revised TDS return reflecting the full and correct deduction for the quarter. You can file multiple revised returns — there is no limit on the number of revisions before the due date.
No impact on deductee's liability.
The party from whom TDS was deducted will get credit only once the full TDS is deposited and reflected in Form 26AS.
Interest & penalty
Be prepared for interest under sections 201(1A) for late deduction and late payment, and possibly penalty if the delay is significant.
Summary:
You cannot avoid TDS liability by declaration from the deductee.
Deposit the short deducted amount with interest immediately.
File the revised TDS return after payment.
Inform your accounts or tax department to avoid delays.
Here’s what you can do:
No declaration from party will relieve your company of TDS liability.
The responsibility to deduct and deposit TDS on time is on the deductor (your company), regardless of whether the deductee pays their tax or not.
Deposit the short deducted amount ASAP.
Since the balance TDS hasn't been paid, the company must deposit the remaining TDS amount immediately with interest and any applicable penalty for late deduction/payment.
File a revised TDS return again after deposit.
After payment, file the revised TDS return reflecting the full and correct deduction for the quarter. You can file multiple revised returns — there is no limit on the number of revisions before the due date.
No impact on deductee's liability.
The party from whom TDS was deducted will get credit only once the full TDS is deposited and reflected in Form 26AS.
Interest & penalty
Be prepared for interest under sections 201(1A) for late deduction and late payment, and possibly penalty if the delay is significant.
Summary:
You cannot avoid TDS liability by declaration from the deductee.
Deposit the short deducted amount with interest immediately.
File the revised TDS return after payment.
Inform your accounts or tax department to avoid delays.
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