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TDS Short Deduction Interest on Form 26QB

TDS 1253 views 3 replies

While submitting Form 26QB, I made two mistakes

  1. I made a rounding error which caused a short deduction of Rs 0.47
  2. I entered incorrect Date of Payment in the challan which gave impression that I had filed the TDS late.

For this, I received a notice from TDS CPC which mentioned  Short Deduction, Interest on Late Payment & Late Filing Levy.

Then I submitted a request for correction of Date of Payment in Form 26QB through TRACES portal. This request got approved after verification of all documents & transactions. Unfortunately, I did not do anything about Short Deduction.

After the correction got approved, I received another notice in which there is a demand Rs. 1,327 for Late Deduction interest against the processing of latest correction. Apparently this amount is 1% of Total Amount for which I had paid TDS.
Is paying the demand my only option now? Any guidance would be appreciated.

 

Replies (3)

Firstly, it's great that you've already corrected the Date of Payment in the challan through the TRACES portal.

However, the short deduction of Rs 0.47 is still pending. Regarding the demand notice for Rs. 1,327, you have a few options: - *Pay the Demand*: You can pay the demand amount, but this might not be the best option, considering you've already corrected one mistake. -

*File a Rectification Request*: You can file a rectification request online to correct the short deduction error. This might help you avoid paying the demand amount.¹

 - *Submit a Revised Return*: If you're not comfortable with the rectification request process, you can submit a revised return to correct the errors.

Before proceeding, ensure you: 1. *Verify the Demand Notice*: Double-check the demand notice to ensure it's accurate and not a result of another error.

2. *Gather Supporting Documents*: Collect all relevant documents, including the corrected challan and proof of TDS payment. 3. **Consult

Hi Akhilesh,

I'm trying to get the date of payment corrected on my 26QB. Do you mind sharing the documents you needed to get verified? 

I'd submitted the following and my request was rejected for missing documents. Wondering if you had additional documents?

  1. Indemnity Bond Notarised 
  2. Copy of Challan & Form 26QB originally filed 
  3.  Bank Statement Reflecting the Transaction of 26qb payment.
  4. Copy of PAN and Aadhaar
  5. Form 26QB Correction Acknowledgment

 

In my case, Income Tax Officer asked for following documents

1. Copy of Sale Deed/Agreement.
2. Copy of PAN of the seller.
3. Bank account statement containing the amount(s) of all payments of sale consideration paid to the seller.
4. Copies of all Receipts issued by the seller.


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