Tds short payment

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Bharathi

Bharathi (Querist)
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15 November 2014 hi what is mean by short payment in TDS and how it is calculated?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 November 2014 Shortage between the TDS amount need to be calculated and to be paid as per rates specified in the section and the actual amount you have deposited for that section tds

Bharathi

Bharathi (Querist)
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15 November 2014 can u plz illustrate with an example sir?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 November 2014 Ex 1.

Say you have deducted TDS @ 10% u/s 194A. But the PAN is not correct therefore system will calculate 20% TDS and you will receive notice for Short Deduction of remaining 10%.

Ex 2.

You deducted TDS @1% 194C whereas TDS should have been deducted @2% so there is a short deduction of 1%.

Hope its clear now.

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CA Pradeep Kumar Rajput

CA Pradeep Kumar Rajput (Expert)
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15 November 2014 When TDS payment made to government are less then actual tax deducted, it is short payment of TDS.

Suppose u deducted Rs. 10 TDS but u paid to the government only Rs. 8 then Rs. 2 are short payment.

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