Received defaults notice for tax on sale of property

date of tax deduction is irrelevent, as it has to be deducted FROM the payment so the deduction date should be 25/06/2015, if the entry is made errorneeously then rectify it, and resubmit as date of deduction 25/06/2015 

date of deposit of TDS and filing TDS return matters 

Thanks for the prompt reply Sharma Ji,

But I am a bit confused here -

1. Is it because of incorrect "date of tax deduction" that I got Notice. If yes, is it as compliant with rules? because payment date is 25-Jun-2015 so last date for deduction should be 07-July-2015. Also Why Interest is 2% ? 

Lastly Please guide, If I correct this date and resubmit, will it resolve the issue? 

2. As you suggested "date of tax deduction is irrelevent" is the reason behind notice is some thing else. Please help me understand it.

Please help me resolve the same.. Thanks in advance for your valuable inputs..

Originally posted by : Vineet
	Thanks for the prompt reply Sharma Ji, But I am a bit confused here - 1. Is it because of incorrect "date of tax deduction" that I got Notice. If yes, is it as compliant with rules? because payment date is 25-Jun-2015 so last date for deduction should be 07-July-2015. Also Why Interest is 2% ?  Lastly Please guide, If I correct this date and resubmit, will it resolve the issue?  2. As you suggested "date of tax deduction is irrelevent" is the reason behind notice is some thing else. Please help me understand it.

date of deduction is 25th june 2015 as you have made payment to seller AFTER deduction of TDS

date of payment is 7th July 2015, 

date of deduction is not same as date of payment , try to understand 

Sir,

I suggest you to file a correction statement of Form 26 QB and edit date of deduction as 25-06-2015. (date of payment and date of deduction shall be the same)  

The interest rate is not 2%. Interest is calculated @ 1% per month for two months. In Form 26QB already filed, date of payment is 25-06-2015 and date of deduction is 04-07-2015. Hence, interest will be calculated @ 1% per month for the month of June 2015 and also for the month of July 2015. 

Hi,

After paying “Interest on Late Deduction” using “demand payment” link on the TIN portal is there any correction required in form 26QB.

Please advice

Thanks

Please provide your input for the above issue.

Thanks in advance 

Sarthak

Dear D J M Sir,

As per your advice I have Filed an online correction in form 26QB and submitted the required documents to the AO . 

But the status on traces still shows as "Pending for AO approval". 

Should I wait for the AO to take action  

or  

Should I also go ahead and pay the demanded interest amount for safety (to avoid further penalty if AO doesnt approve) ? 

So If I pay now, Can I claim a refund later in case AO approves my original correction request? 

Please advise.