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TDS Default for Late Deduction - Clarification needed **

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Viswa nath

Sales professional

84 Points Posted on 10 June 2023

Sir, For Q4'23 TDS Filing in 27Q,
have deposited TDS 4 days after due date. instead of 7/Mar paid on 11/Mar.
For this i have paid 1.5% interest for 1 month (Rs.342).
But my 27Q received TDS Default demand of Rs.10,750 as interest under 201

It seems the demand incorrect.
Should I submit a correction in Traces.

Details : Paid to Deductee: 1 Lakh -on 17/FEB/23. TDS @ 22.88% is 22,800 deposited 4 days late by 11/Mar with 1.5% (Rs.22800)= 342 (Due date 7 of next month = 7/Mar)

The default demand is for Late deduction = Rs.10750 as interest.

The Payment & TDS deducted date is same (17/Feb).
Have incorrectly mentioned deducted date in 27Q RPU as deposit date(11/Mar).
Is the late deduction demand is due to this.

Replies (3)

Quick Summary

A user filed their Q4'23 TDS return on 27Q, depositing the TDS four days after the due date. They paid 1.5% interest for the late deposit but received a significant default demand of Rs. 10,750 for 'interest for late deduction'. The user believes this demand is incorrect as the TDS was deducted and paid on the same date, and suspects an error in reporting the deposit date on TRACES. They are seeking clarification on whether to file a correction.