21 October 2014
Hi All My TDS Return is processed with defaults for QTR 1 & 2 for F.Y. 2014-15 because of Short Interest Calculation on delayed payments. Shall I pay the difference amount & revise the return , I m not able to download justification report also.
21 October 2014
Ideally you should check the calculation from Justification report and if found ok then make the payment. Return must be revised after making the payment.
04 November 2014
Sanjay sir inspite of putting correct BSR no. token no. challan no. etc required for Downloading Justification Report, it is showing amt not matching with challan. what to do ?????? not able to download JR ????????????? thnx priya
05 November 2014
Hi All I deducted Tds on 21/4/2014 Qtr1 amt 4455 + interest 312= 4767 & 15/7/2014 Qtr2,4455+ 178 interest = 4633/-both paid on 13.10.2014 later on party submitted form 15G,he is not ready to claim refund, now i want to adjust that amt to some other party tds deducted on 16/09/14 for Q2 is 6000/- i hv not filed Tds Return yet for both the QTRs. how to adjust the TDS 6000/-& how much interest to show, what about bal amt ????? section is same . plz reply thnx priya
08 November 2014
Sanjay Sir i got an intimation u/s 200A, for interest on late payments, while making payment through 281, where should i put the interest amt in Code 200 or 400, actually i have already paid through 200, do i have to revise the challa, since i hv to revise my TDS Return??????
28 July 2025
Here's a detailed response to your **TDS Return default, adjustment, and payment clarification** queries:
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### 🔍 **Issue Summary**
You have:
1. Filed TDS for **Q1 and Q2 of FY 2014–15**, but got **defaults due to short interest** (under Section 201(1A)). 2. **Form 15G** was submitted late by deductee (after TDS deducted and paid). 3. You paid both **TDS + interest** through Challan 281 on 13.10.2014. 4. You now want to **adjust unused TDS** against another party (same section). 5. You received **intimation under Section 200A** for **interest**. 6. You’re unclear on **how to show interest** in challan and revise your TDS return.
---
### ✅ **Step-by-Step Solution**
---
### 🟡 1. **About "Processed with Defaults"**
If TRACES shows **"processed with defaults"**, it means you must:
* **Download the Justification Report** (JR) to know exact reasons (e.g. interest shortfall). * **Pay short interest (if justified)** and * **Revise the TDS return** to tag that interest correctly with the appropriate challan.
> 🛠️ **Problem:** You’re unable to download JR because of challan mismatch. > ✅ **Fix:** Double-check the following while requesting JR:
* **Token Number (15-digit)** of the original filed return. * **Challan CIN details** (BSR Code, Date, Challan Serial No., and Exact Amount). * Match the **TDS amount exactly** (don’t include interest in challan amount — that's a common mistake). * Use **TRACES credentials** of the **deductor**.
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### 🟢 2. **TDS Already Paid – Form 15G Issue**
* Even if Form 15G is received late, and the deductee doesn’t want a refund, **you cannot un-deduct or reverse TDS** once paid. * However, the **TDS paid** for that party can be **adjusted** against other deductees **only if**:
* **Section is same** * **Challan not yet fully utilized** * And TDS return has **not yet been filed**
✅ You **can tag the same challan** to another deductee (Rs. 6000 in Q2) **while preparing TDS return**, provided it’s under the same **section code** and **correct PAN** is entered.
---
### 🟣 3. **Interest Payment – Code 200 or 400?**
When paying **interest or late filing fees**, use:
| **Purpose** | **Code to Use in Challan 281** | | ----------------------------------- | ------------------------------ | | TDS Payment | **200** | | Interest, Late Fee | **200** | | Regular Assessment Demand (from AO) | **400** |
> ✅ Since you are paying **interest due to late payment**, you must use **Code 200** in Challan 281, NOT 400.
📌 **No need to revise the challan**, as long as it's paid under the right TAN and section code. But you must **revise your TDS return** and tag the **interest portion** separately.
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### 🔁 4. **Revising the TDS Return**
After payment:
1. Download the **Conso file** from TRACES 2. Use **RPU (e.g., NSDL's latest version)** to prepare a **correction statement** 3. Use the **“Add/Tag Challan”** feature 4. Allocate the **TDS amount** and **interest** appropriately
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### ⚠️ 5. **Balance Amount?**
If you still have **unutilized TDS** (e.g., the Rs. 4455 of unused TDS from Form 15G deductee), it will **remain in your challan**. You can:
* Use it in future returns (same TAN, section) * Or it may be **refunded** or adjusted by CPC-TDS eventually (rare)
---
### 📝 Summary:
* ✅ **Use Code 200** for interest under Challan 281 * ✅ You **can adjust** unused TDS to another party if section and challan are same * ✅ **Revise the TDS return** to reflect changes and avoid mismatch * ❌ Don’t file incorrect NIL returns just to avoid fees — that triggers **Section 271H** * 🧾 Ensure correct challan CIN to download **Justification Report**
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Let me know if you want help generating the **Correction Statement (FUV)** or tagging interest in RPU.
CAclubindia
