How to pay TDS default payment

If TRACES (TDS Reconciliation Analysis and Correction Enabling System) shows a default on TDS, you'll need to pay the due amount to avoid further action.

 Here's a step-by-step guide:

1. Log in to the TRACES portal (www.tdscpc.gov.in) with your credentials.

2. Navigate to the "Default" or "Outstanding Demand" section.

3. Select the relevant assessment year and default type (TDS).

4. Verify the details and amount payable.

5. Click on "Pay Online" and select the payment option (e.g., Net Banking, Debit/Credit Card).

6. Make the payment and note the challan number.

7. Confirm the payment on the TRACES portal.

Regarding the income tax portal, an outstanding demand may appear under the "TDS Defaults" or "Outstanding Demands" section.

To resolve this: 1. Log in to the Income

The problem is that at TRACES I don't see Default or Outstanding Demand option.

All I see is "Vew Default Summary" which shows the default penalty and interest amount.  That is why I am confused how to pay.

There is another option called "request for correction."  .  

My default is for TDS on Rent, and I am the tenant.

Contaact help desk TRACES

At the income tax portal you can find out all the default notices & demands. You can pay it as the other tds challan paid , financial year & the Assessment year is the most important, one should take more precaution on that .

You have to submit an online correction request for the particular quarter first. For further procedures kindly DM.

Hello,

How can we pay the outstanding demand of the years before 2017-18 on the traces portal and how to adjust it?

To pay a TDS default, use Challan 281. Here is the step-by-step.

1. Log in to incometax.gov.in and go to e-Pay Tax.
2. Select Challan 281: TDS/TCS payable by Non-company Deductors (or Company Deductors).
3. Choose the correct nature of payment: 92A for salary TDS, 92B for TDS on other payments.
4. Pay the principal TDS plus interest under Section 201(1A).

Interest under Section 201(1A):

- 1% per month from the date TDS was required to be deducted to the date of actual deduction (if deduction itself was late)
- 1.5% per month from the date of deduction to the date of actual deposit

Example: TDS deducted on June 1 and deposited on August 10 means 1.5% per month for June, July, and part of August. Part months count as full months.

After paying:

- File a correction TDS return through TRACES to link the challan to the correct deductee entries.
- The deductee Form 26AS updates once the correction return is processed.
- If you also missed the quarterly return filing deadline, Section 234E applies at Rs 200 per day. Pay that as part of the same challan.

This [Section 201(1A) guide on late TDS deposit](https://taxgarden.in/blog/section-201-1a-interest-late-tds-deposit-deduction-india) has worked-out examples with the interest calculation so you can verify your numbers before paying.