I paid TDS on my property which I delayed it by a day and received a demand notice
The demand notice has two entries
Late fee: 200
Interest: 61.50
When I go to the demand payment form there are four entries
Principal tax (a)
Interest (b)
Penalty (c)
Fee under section 234E (d)
My question is, what amount to enter in each? In my case I have made the TDS payment already so I'm confused with the "Principal Tax" amount
| Field in Demand Payment Form | Amount to Enter |
|---|---|
| Principal Tax (a) | 0 |
| Interest (b) | 61.50 |
| Penalty (c) | 0 |
| Fee u/s 234E (d) | 200 |
Because Form 26QB already included your tax amount (TDS on property). The demand notice is not asking for TDS again, only for delay-related charges.
The challan will get validated in a few days and the demand will disappear from the portal.
A TDS demand for property usually has two parts: the TDS shortfall under Section 201(1) if you deducted the wrong rate, and interest under Section 201(1A) at 1.5% per month from the date of deduction to actual deposit. If you deducted the correct 1% but filed Form 26QB late, the notice is only for interest. You pay both on the TIN-NSDL portal via a revised 26QB, and the demand should clear once processed. If the numbers in the notice seem off, compare your sale deed value against what you used as the TDS base (it should be the sale price, not the stamp duty value). Guide: taxgarden.in/blog/tds-on-property-purchase-section-194ia-form-26qb-india
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