Tds

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mungoti manasa (Querist)
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12 December 2014 Where to enter Interest amount in TDS RPU when in challan
1)Only interest is paid in challan
2)when interest is paid with TDS can i know clearly how to mention

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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12 December 2014 1. While paying only interest just add the interest challan in the challan sheet. no need to mention anything in deductee sheet

2. When interest is paid with TDS interest amount need to show in challan sheet only as separate column is there

mungoti manasa

mungoti manasa (Querist)
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13 December 2014 In case if only interest has been paid, i am mentioning the challan in challan sheet, interest column after processing of the return,
the interest challan is not setting -off against default penalty, & i have challan balance in statement.
For set-off of interest to default raised online what should i do sir?
Can anyone please suggest me.
Thanks for the reply Sir.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 December 2014 Give me more clarity, penalty or interest?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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27 July 2025 This is a **common issue** when using the **TDS Return Preparation Utility (RPU)** — especially when dealing with **interest payments** under Section **201(1A)**. Let's clarify your two queries:

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## ✅ **1) Where to enter interest amount in RPU when:**

### A) **Only Interest Is Paid in a Challan:**

If you have **only paid interest** (no TDS), and want it to be set off against defaults raised by the TRACES portal:

* In the **Challan Details** sheet:

* Enter challan number, BSR, date, amount, etc.
* Enter the **interest amount** in the **“Interest” column**.
* Keep the **TDS column as zero (0)**.
* **Do NOT map this challan to any deductee rows**, because it's only interest.
* **Important**: This **won’t automatically get adjusted against TRACES defaults** — because defaults must be **linked to a demand raised**.

### Solution:

To get the **interest paid matched with TRACES demand**, you **must**:

* Use **TRACES Justification Report Utility (JRU)** to import the **default notice (justification report)**.
* Update your **correction return** using that justification.
* While creating correction return in **RPU**, **tag this interest-only challan** against the **default row** (e.g. "Late Deduction Interest") when you update challan mapping.

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## ✅ **2) When Interest Is Paid Along With TDS in the Same Challan:**

* In the **Challan Details**:

* Enter the **TDS amount** in the TDS column.
* Enter **interest amount** in the **interest column**.
* Total challan amount = TDS + Interest (+ Fee, if applicable).
* In the **Deductee details**, **map** only the TDS part to the deductee row.
* Again, to link the **interest portion** to any TRACES default, correction through **JRU** and proper **mapping in correction return** is essential.

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## ❗ Why It’s Not Getting Adjusted Automatically:

TRACES doesn’t auto-adjust interest-only challans unless:

* The **correction statement specifically maps it** to a **default raised**.
* The **Challan Utilization** is done correctly in **RPU/Correction Return**.

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## ✅ Final Recommendation:

* **Download Justification Report** from TRACES.
* Use **Justification Report Utility (JRU)** to prepare corrected return.
* In RPU, map the **interest-only challan** against respective **default row**.
* Generate the corrected return using **FVU** and submit on **TIN/Protean portal**.

If you'd like step-by-step instructions with screenshots, I can help with that too.

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