TDS Q4 RETURN - DEFAULTS DUE TO WRONG DEDUCTIONS DATES

This query is : Resolved

Quick Summary

This discussion addresses TDS Q4 return defaults arising from incorrect deduction dates entered in Form 27Q, despite timely deposit of TDS. The user mistakenly entered the same deduction date for February and March as for January, leading to an 'Interest on Late Payment' default. The advice provided suggests waiting for the statement to be processed, then attempting online correction via TRACES to update the deduction dates for February and March. If online correction is unavailable, the user is advised to request a Conso File and use the TDS RPU utility for an offline correction.

Abhijit

Abhijit (Querist)
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01 June 2025 Respected Experts,

I had filed 27Q returns for Q4 of 2024-25, however I submitted the return with wrong deduction dates.

For Q4 months of JAN-FEB-MAR, I had (mistakenly) entered the same deduction date of 09/01/2025 while actually paying (depositing) the TDS on time for each month.

Month - Deduction Date

JAN - 09/01/2025 (Correct)

FEB - 09/01/2025 (Wrong. Should have been 09/02/2025)

MAR - 09/01/2025 (Wrong. Should have been 09/03/2025)

Now I see the 'DEFAULTS' status for 27Q Q4 regular return statement with XXX amount payable for 3(b) INTEREST ON LATE PAYMENT as type of default.

I downloaded the JUSTIFICATION REPORT and this is when I realized I had entered wrong deduction dates for the months of FEB and MAR. Same deduction date of 09/01/2025 for both the months.

screenshot - https://postimg.cc/rdf5MFJ5

I also see one Unconsumed Challans (Date of Deposit 07-May-2025) inside Traces dashboard.

When I try to proceed with REQUEST FOR CORRECTION (online/offline), I get the following error.

No data available for the specified search criteria.
Reasons can be:
1) There is no statement filed for the searched criteria. Please verify FY, Q, FT are entered correctly.
2) The statement is filed and is being processed in CPC TDS. Please try after some time.
3) The original statement filed is a paper return.

Please help me fix this.

Your knowledgeable guidance would really help.

Best Regards.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 June 2025 Paper return may not have been filed online.
File online TDS return again with correct deduction dates.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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03 June 2025 You're facing a default for "Interest on Late Payment" under 3(b) because the wrong deduction dates were reported in Form 27Q for Q4 of FY 2024–25, even though you deposited TDS on time.

Let’s break it down and provide a step-by-step solution:

Root Cause of the Problem
In Form 27Q:

Deduction Date is the date on which you deducted tax.

Due Date to Deposit TDS is 7 days from the end of the month in which deduction occurred.

Since you entered 09/01/2025 as the deduction date for FEB and MAR too, the system assumes TDS for those months was deducted in JAN, and hence interest is calculated from the incorrect deduction date until the actual deposit date.

This mismatch leads to interest under Section 201(1A) being shown, even though your actual deduction and payment were timely.

How to Correct It
You need to revise the 27Q return for Q4 by correcting the Deduction Dates for the entries of February and March.

Step-by-Step Correction Process:
1. Wait Until Statement is Fully Processed (if recent)
If the return was filed recently, the error message:

“No data available for the specified search criteria...”
often means the TDS statement is still under processing by CPC-TDS.

Wait a few days and try again — processing can take up to 7 days.

2. Use TRACES Online Correction (Preferred)
Go to TRACES login.

Navigate to:

rust
Copy
Edit
Defaults → Request for Correction → 27Q Q4 of FY 2024–25
If it's available, you'll see the option to correct Deduction Details.

Correct the Deduction Dates:

FEB: 09/02/2025

MAR: 09/03/2025

Submit and validate using DSC or EVC.

3. If Correction Still Not Available
If online correction still throws errors after waiting a few days, try this:

a) Request for Conso File (Correction Statement)
Go to:

arduino
Copy
Edit
Statements → Request for Conso File
Select FY: 2024–25, Qtr: Q4, Form: 27Q

Download once available.

b) Revise Using TDS RPU Utility (Offline Method)
Use the downloaded Conso File + Justification Report

Open with TDS RPU (Return Preparation Utility) and correct the deduction dates.

Validate with FVU File Generator and upload the corrected file on TIN portal.

This will override incorrect deduction dates.

About Unconsumed Challan
You mentioned an unconsumed challan dated 07-May-2025 — this might have been deposited after the correction filing or due to wrong tagging.

Once the deduction dates are corrected, you'll be able to consume/link this challan properly during correction, if applicable.

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