Short tds deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2012 Dear expert,
One of my client deducted Rs. 1984/- instead of Rs. 2098/- in 4th quarter of FY 2011-12. Now tds default email has been received for short deduction of Rs. 115/-. Now what can be done, as it would be tedious task to file correction statement, just only for the difference of Rs. 115/- .
Please advise me.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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01 May 2012 Even if it is the default of Rs. 115, you need to file the rectification statement.

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2012 after depositing Rs. 115/-, there would be two challans of Rs.1984/- and Rs. 115/-, then how to adjust two challans for one payment entry during preparation of correction statement. As there is only one challan space for each payment in RPU provided by TIN. As one challan amount can be splited for two different deductees but how to adjust two challans for single payment?

Ram Ji Srivastava

Ram Ji Srivastava (Expert)
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01 May 2012 you have to split the bill amount according the tds amount after that you will be adjucted the tds figure according to your challan amount.

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2012 after depositing the tax, if my client writes a letter to ITO TDS with the copy of challan for rectification of mistake,
Whether it is sufficient or revised return would be only resort.

Ram Ji Srivastava

Ram Ji Srivastava (Expert)
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02 May 2012 In my opinion, revised return is right soluation for the same.

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2012 If this revised return is filed after 1 july 2012, whether it also attract the penalty of Rs. one lac or not? (as amended provisions of department)
Please advise me.

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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25 July 2025 Here's a detailed answer to your query on short TDS deduction of Rs. 115/- and related compliance:

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### 1. **Short Deduction of TDS: Rs. 115/-**

Even if the shortfall amount is small (Rs. 115/-), the Income Tax Department requires correction of TDS returns to reflect the accurate deduction and payment.

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### 2. **Correction Statement / Revised TDS Return**

* You **must file a correction (or revised) TDS return** for the relevant quarter showing the correct TDS amount (Rs. 2098/- instead of Rs. 1984/-).
* This ensures that the deductee gets correct credit in Form 26AS and no mismatch arises.

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### 3. **Payment of Additional Tax (Challan)**

* You will have **two separate challans**:

* One for Rs. 1984/- (original payment)
* One for Rs. 115/- (additional payment to cover shortfall)

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### 4. **How to Reflect Two Challans in Revised Return?**

* The revised return utility (RPU) allows you to split the payment amounts per deductee.
* You need to **allocate the TDS amounts in the revised return according to the challan amounts**.
* For instance, show Rs. 1984/- against one challan and Rs. 115/- against the other, splitting the tax deducted for the concerned deductee accordingly.
* Even if it feels cumbersome, this is the correct procedure.

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### 5. **Is a Letter to ITO Sufficient?**

* Writing a letter to the Assessing Officer (ITO) explaining the shortfall and attaching challans is **not sufficient** to regularize TDS defaults.
* The department requires the revised return to be filed electronically.
* The letter can be sent to explain or request waiver/consideration of penalty but cannot replace filing of revised return.

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### 6. **Penalty Concerns If Filed After Due Date (1st July 2012)**

* Under amended provisions (Finance Act 2012 onwards), if the revised TDS return is filed **after due date (31st July of the financial year following deduction year)**, a penalty of up to Rs. 1,00,000/- may be imposed.
* However, the penalty is **discretionary** and often not imposed for small amounts or genuine mistakes if tax + interest is paid promptly.
* To avoid penalty:

* Deposit short TDS + interest immediately
* File revised return at the earliest
* Provide a proper explanation if required

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### **Summary:**

| Step | Action |
| ------------------------ | ------------------------------------------------------------------------------------------ |
| Deposit short TDS amount | Pay Rs. 115/- immediately with applicable interest. |
| File revised return | File revised TDS return for the quarter showing full Rs. 2098/- TDS with correct challans. |
| Letter to ITO | Optional, only for explanation or waiver request, not a substitute for revised return. |
| Penalty | May apply if revised return filed late, but avoid by prompt compliance and explanation. |

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If you want, I can help draft the revised TDS return or a letter to the ITO explaining the situation. Would you like that?

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