No credit for interest on tds

644 views 2 replies

Dear Friends/ Seniors,

 

On of my client had made late payment of TDS along with interest, the TDS returns were filed and a notice was received from traces,  where the credit for the TDS had been given but not for interest. As per the notice the interest amount was payable by the company, this interest was on a bit higher side than actually paid by them, thus the balance was paid and a correction report was filed. Now again the company has received the notice, in this one the credit for the additional interest is given to the company but not the one which was originally paid at the time of TDS payment.

 

This has hapened twice and now again the third time the notice is received, with the same query.

 

Kindly suggest what should be done. We have even tried generating the report from different software but the same issues still exist.

 

Thanks in advance

 

Warm Regards

Ravi Dasija

Replies (2)

Firstly I recommend to verify the challan of original interest paid whether the interest row was seperatly filled in the challan. If yes, then there are two places where such intererest is to be shown in the e-tds return. Generally my practical experience is that tax payers mention the interest amount only at one place that is as a break up of challan details, however there is an another coloumn where such interest is to be shown once again. Only then the credit for such interest will be given.

Your second interest payment was accepted since you may have paid it through a seperate challan mentioning the interest amount seperalty and would have added a seperate challan in the correction return, hence TRACES has given such interest credt without second verification. 

Whenever, an interest is paid alongwith the tax in a single challan, TRACES is verifying whether interest amount is been mentioned at two places in the return as discussed above and only then the credit is being given.

If you still face the problem or you have done everything as said above and there are no results please write back or write an email to TRACES.

Dear Mr. Mehta,

 

Thanks for your valuable reply.

 

Yes, the interest amount was seperately mentioned in the challan while making the payment, also at the time of filing the returns the amount of interest had been mentioned at both the places available (in the original return the same was not done but however when the returns were filed, this was taken care off).

 

I had also tried to get in touch with traces but at that point no proper reply was given, will try the same again today.

 

Once again thanks for your time and reply.

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