Tds Q-4 F.y.2015-16 24Q RPU Short Deduction..??
This query is : Resolved
17 May 2016
Dear Sirs,
I have Query regarding Intimation U/s200A for short deduction received from Traces as follows :
One of our employee have some income from bank interest & bank already deduct 10% tds on that interest income.
Employee has in the category of 20% slab of income tax. When filling income details of that employee in Annexure II of form 24Q ,there is short deduction of that TDS deducted by bank (10% TDS). Now, please suggest me ,Can I pay that short deduction amount ? OR If i have paid that amount then it is necessary to filled correction return.
17 May 2016
If you have already paid the amount then you should get the return revised.
If you have not paid the amount than in correction return you can make the income from other sources as Zero.
Else if you have not filed the return yet then you may not show the interest income in Annexure-II.
If you have not paid the amount than in correction return you can make the income from other sources as Zero.
Else if you have not filed the return yet then you may not show the interest income in Annexure-II.
17 May 2016
I have already file my return.
Is there in possibilities for any more notices from tds after making interest income as zero.
17 May 2016
No, there will no issuance of such notices in that case.
17 May 2016
Thanks for your valuable reply.
I have few more queries.
I have downloaded conso file for correctiin ,but there is no option for making any changes in Annrxure II.
27 July 2025
Gotcha! Here’s a clear step-by-step answer based on your TDS short deduction issue in Form 24Q for FY 2015-16 Q4:
---
### Situation Summary:
* Employee earned **bank interest** income.
* Bank deducted TDS @ **10%** (bank’s rate).
* Employee falls under 20% tax slab, so ideally TDS should be at 20%.
* In your 24Q Annexure II, this appears as **short deduction**.
* You want to know how to pay/adjust short deducted TDS and correct returns.
---
### What You Should Do:
1. **If you have NOT paid the shortfall amount yet:**
* You can pay the short deduction amount.
* Then file a **correction (revised) return** for that quarter.
* In the revised return's Annexure II, you should properly reflect the **correct TDS**.
* If you want, you can also set the interest income as zero in Annexure II to avoid showing the bank’s short deduction (though this means you’re not reporting the interest income in TDS statement).
2. **If you HAVE already paid the short deduction amount:**
* You *must* file a **revised return** to reflect this payment.
* This ensures your records with TDS CPC and TRACES are reconciled.
* Revised return helps avoid future notices.
3. **If you have filed the return and NOT paid the shortfall:**
* You can still pay the shortfall amount now.
* Then file revised return.
* If you don’t file revised return, there is a chance of receiving notices later.
---
### About Annexure II Editing in RPU:
* The **24Q RPU tool** does **not allow editing Annexure II** directly for correction.
* To correct Annexure II, you generally have to **prepare a correction file (consolidated file)** with correct data externally (Excel etc.) and then upload.
* Alternatively, you can make corrections by adjusting data in the original quarterly TDS data and re-upload the full file.
* For small corrections in Annexure II, you may need to manually adjust in your source data before creating the correction file.
* If the tool doesn’t permit, consider reaching out to your TDS software vendor or use TRACES offline utility if available.
---
### Important Notes:
* The bank is responsible for TDS on interest, so generally **employer is not liable** for TDS on bank interest income of employee.
* The short deduction here is because bank deducted at 10%, and employee’s slab is 20%, but you as employer don’t have to pay the difference on behalf of bank.
* You can show interest income in Form 16 or employee’s income tax return, and employee will pay tax on that income as per slab.
* If short deduction notices come, you can clarify the bank is deductor for bank interest.
---
**Summary:**
| Situation | Action |
| -------------------------- | --------------------------------------------------- |
| Short deduction paid | File revised return to reconcile |
| Short deduction unpaid | Pay amount + file revised return |
| Filed return, unpaid | Pay amount + file revised return |
| Annexure II editing issues | Correct data externally, regenerate correction file |
---
Would you like me to help you draft a revised return procedure or prepare a template to fix Annexure II data?
---
### Situation Summary:
* Employee earned **bank interest** income.
* Bank deducted TDS @ **10%** (bank’s rate).
* Employee falls under 20% tax slab, so ideally TDS should be at 20%.
* In your 24Q Annexure II, this appears as **short deduction**.
* You want to know how to pay/adjust short deducted TDS and correct returns.
---
### What You Should Do:
1. **If you have NOT paid the shortfall amount yet:**
* You can pay the short deduction amount.
* Then file a **correction (revised) return** for that quarter.
* In the revised return's Annexure II, you should properly reflect the **correct TDS**.
* If you want, you can also set the interest income as zero in Annexure II to avoid showing the bank’s short deduction (though this means you’re not reporting the interest income in TDS statement).
2. **If you HAVE already paid the short deduction amount:**
* You *must* file a **revised return** to reflect this payment.
* This ensures your records with TDS CPC and TRACES are reconciled.
* Revised return helps avoid future notices.
3. **If you have filed the return and NOT paid the shortfall:**
* You can still pay the shortfall amount now.
* Then file revised return.
* If you don’t file revised return, there is a chance of receiving notices later.
---
### About Annexure II Editing in RPU:
* The **24Q RPU tool** does **not allow editing Annexure II** directly for correction.
* To correct Annexure II, you generally have to **prepare a correction file (consolidated file)** with correct data externally (Excel etc.) and then upload.
* Alternatively, you can make corrections by adjusting data in the original quarterly TDS data and re-upload the full file.
* For small corrections in Annexure II, you may need to manually adjust in your source data before creating the correction file.
* If the tool doesn’t permit, consider reaching out to your TDS software vendor or use TRACES offline utility if available.
---
### Important Notes:
* The bank is responsible for TDS on interest, so generally **employer is not liable** for TDS on bank interest income of employee.
* The short deduction here is because bank deducted at 10%, and employee’s slab is 20%, but you as employer don’t have to pay the difference on behalf of bank.
* You can show interest income in Form 16 or employee’s income tax return, and employee will pay tax on that income as per slab.
* If short deduction notices come, you can clarify the bank is deductor for bank interest.
---
**Summary:**
| Situation | Action |
| -------------------------- | --------------------------------------------------- |
| Short deduction paid | File revised return to reconcile |
| Short deduction unpaid | Pay amount + file revised return |
| Filed return, unpaid | Pay amount + file revised return |
| Annexure II editing issues | Correct data externally, regenerate correction file |
---
Would you like me to help you draft a revised return procedure or prepare a template to fix Annexure II data?
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