Q1: What are the various types of defaults that may get generated on 26QB processing?
Ans: Following are the types of Defaults that may get generated on 26QB processing:—
1) Short Deduction: Short deduction is computed when the rate at which TDS Deducted is less than 1%.
Short Deduction Computation u/s 200A
|Sr. No.||Section Code||Amount Paid / Credited as per 26QB (Rs.)||TDS Deposited as per challan (s) (Rs.)||Rate at which Deposited as per 26QB (%)||TDS Rates as per Act (%)||TDS Deductible (1%* Amount Paid/credited as per 26QB) (Rs.)||Short Deduction (Rs.) (Col 7- Col 4)|
|1||194-IA||9252000.00||9252.00||0.10 %||l %||92520.00||83268.00|
2a) Late Payment Interest: When deductor deposits the TDS after due date of challan deposit, it is a case of late payment and interest will be charged accordingly. Late payment interest will be charged @ 1.5% per month from the date of tax deduction to date of tax deposition.
Late Payment Interest Computation u/s 200A read with Sec. 201(1A)
Date of Deduction as per 26QB (dd-mmm-yyyy)
Due Date for TDS Deposit (dd-mmm-yyyy)
Date of Deposit as Per OLTAS (Challan) (dd-mmm-yyyy)
TDS amount consumed from challan (Rs.)
Period of Delay in Months (Col 4 – Col 3)
Interest on Late Payment U/S 201 (1A)(Rs.)(Col 5 * Col 6*1.5%
* Due date of TDS deposit will be by 7th of the next month of the month for which transaction is reported.
3a) Late Deduction Interest: When deductor does not deduct the TDS amount on the date of Payment/Credit, then, Interest on Late deduction is computed i.e. if the date of deduction is after the date of payment credit, then the late deduction interest is computed. Late deduction interest is charged @ 1% per month from date of transaction to date of tax deduction.
Late Deduction Interest Computation u/s 200A read with Sec. 201(1A)
Date of Payment/credit as per 26QB (dd-mmm-yyyy)
Due Date of Deduction (dd-mmm-yyyy)
Date of Deduction as Per 26QB (dd-mmm-yyyy)
TDS Deductible (1% * Amount Paid/credited as per 26QB) (Rs.)
Period of Delay in Months (Col 4-Col 3)
Interest on Late Deduction U/S 201 (1A)(Rs.)(Col 5* Col6*1.5%
*Due date of deduction will be date of payment/credit whichever is earlier.
3b) Interest on Short Deduction Short deduction interest is calculated @ 1% per month on Part of the month from the date on which tax was deductible to the date of the processing of statement. Please note that ‘interest on Short Deduction’is provisional in nature. As you pay the short deduction default amount, the corresponding interest (i.e interest on short deduction) would be reversed and the “Interest on Late payment” or “Interest on late deduction” shall be levied appropriately, as the case may apply.
Short Deduction Interest Computation u/s 200A read with Sec. 201(1 A)
Short Deduction (Rs.) (as per Col 8)
Date of Payment/Credit as per 26QB (dd-mmm-yyyy)
Order Passed Date as per intimation (dd-mmm-yyyy)
Period of Delay in Months (Col 4-Col 3)
Interest due to short deduction (Rs.) (Col 2 * Col 5 *1%)
4a) Late Filing Fee: As per section 234E, where a person fails to file the TDS/TCS statement within the due date prescribed in this regard, and then he shall be liable to pay, by way of fee, a sum of Rs.200 for each day during which the failure continues. Fee amount will not exceed TDS deductible as per 26QB filed.
Late filing fee Computation u/s 234E
Due date of Filing of 26QB* (dd-mmm-yyyy)
Date of deposit of Challan (dd-mmm-yyyy)
Delay in Filing (No. of Days) (Col 3-Col 2)
Fee per Day(Rs.)
Total Fee (Rs.) (Col 4* Col 5)
Total TDS Deductible (1%* Amount paid/credited as per 26QB) (Rs.)
Fee Payable =Min (Col 6. Col 7) (Rs.)
* Due date of filing will be by 7th of the next month of the month for which transaction is reported.
Note: 1) Interest is chargeable for every month or part of the month on the amount of such tax.
2) A month is considered to be a calendar month as per general clauses act.
Q 2. How can these defaults be resolved? Is online correction facility for form 26QB available now?
Ans: For the resolution of these defaults, the buyer needs to use the “demand payment” link on the TIN portal through URL- https://onlineservices.tin.egovnsdl.com/etaxnew/tdsnontds.jsp. For further detailed procedure of demand payment the buyer/deductor may refer to Question No.3.
However, if the buyer/deductor finds that the default has arisen due to wrong data entry in his 26QB statement, then the functionality for online correction of Form 26QB is now available to the deductors (buyers). For that the buyer can log in to www.tdscpc.gov.in and make the online correction request in the respective fields.
Q3. Is there any approval required for online correction of 26QB statement? If yes, the details thereof ?
Ans: If the buyer makes correction using Digital Signature Certificate (DSC), then there is no need of TDS assessing officer (AO)’s approval for making correction in any field of 26QB form. But, if the buyer doesn’t make correction using Digital Signature Certificate (DSC), then following fields in 26QB online correction require approval of their TAN assessing officer (AO):
If the buyer wants to change the PAN of buyer but doesn’t make correction using DSC, then after the successful submission of correction request, an approval request will be automatically sent simultaneously to both, PAN of Seller and Updated PAN of Buyer and status will be shown as “Pending for PAN approval” in the inbox of buyer. After getting their approval, an approval request will be automatically sent to the TDS assessing officer and status will be shown as “Pending for AO approval” in the inbox of the buyer. However, if the same request is made using DSC then AO approval will not be required and only approval from PAN of Seller and Updated PAN of Buyer will be required.
If the buyer wants to change the PAN of seller but doesn’t make correction using DSC, then after the successful submission of correction request, an approval request will be automatically sent to the PAN of previous Seller and status will be shown as “Pending for PAN approval” in the inbox of buyer. After getting the approval of previous seller, an approval request will be automatically sent to the TDS assessing officer and status will be shown as “Pending for AO approval” in the inbox of the buyer. However, if the same request is made using DSC, then AO approval will not be required and only approval from PAN of previous Seller will be required.
NOTE: In all the cases where approval by AO is required, the dcductor will be prompted to approach the TDS assessing officer with hard copy of the correction request. The dcductor/buyer should carry his Identity Proof & PAN Card along with the documents related to Transfer of Property and the proofs of payment made, for verification at the end of Assessing officer.
Q.4 Is the intimation letter and justification report sent by CPC -TDS password protected? If yes, what is the password to open the same?
Ans: Yes, the attached document containing the intimation letter and justification report sent by CPC -TDS is password protected. To open the PDF, enter the first four characters of your PAN in capital letters, followed by an underscore (_) and date of payment/credit in the format DDMMYYYY. For e.g., if your PAN is ABCD12345E and date of payment/Credit as regular statement is 30-Sep-2012, enter password as ‘ABCD_30092012’