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Tds defaults

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Ashok Nalpe

M.Com

21 Points Posted on 11 September 2015

Hi , I am Ashok, I have some Questions.

1. If TDS payment is done on 7th of the follwing month but credited on 8th, so do I need to pay Interest for the same default? Justification shows it as default for 2 Months.

2. What is to be done in case of Short payment and Short duduction and what are the resons for such defaults, if every thing is done correctly.

3. In above two cases what actions to be done to correct it?

Replies (1)

CMA Poornima Madhava

CMA

9106 Points Posted on 11 September 2015

It happens when you make payment online after 8PM in which case it gets credited only next day or when you make payment through bank and there is a delay from bank in making such payment. If so, you need to pay interest for 2 months because date of credit to be considered irrespective of date of payment.
Short payment/deduction happens when the rate of tax is incorrect or amount is incorrect or when any certificate for lower/nil deduction is available and the same is properly not updated in the TDS return. In this case, you need to revise the return correcting the error.