Action to take on Late Payment Interest defaults in Quarterly TDS Returns

CPC-TDS is now days sending letter to all the TDS deductors in respect of Late Payment Interest defaults in Quarterly TDS Statements/ Returns filed by the deductor. In the letter they specify the Late Payment Interest Outstanding as per their records starting from F.Y. 2007.

CPC-TDS generally provides information of outstanding Late Payment Interest for various TANs belonging to you in following format

Financial year wise details of the above are available online to you on TRACES (www.tdscpc.gov.in) under aggregated TAN compliance (www.tdscpc.gov.in/app/tap/supertanreq.xhtml) report.

On receipt of such communications deductor has to pay the Late Payment interest amount and file the TDS correction statement.

CPC-TDS provides the above information to help deductor in in complying with the provisions of section 40(a)(ia) of Income Tax Act, 1961 and to ensure that correct information is disclosed in paragraph 27A/B of Tax Audit Report(Form 3CD) u/s 44AB of the Income Tax Act.

Actions to be taken by the TAN holders/ Deductor:

• Download quarter-wise Justification Report from our portal TRACES for the details of Late Payment Interest default.
• Please use Challan ITNS 281 for payment of the above, Download the Consolidated File from our portal and submit correction statements.
• Online Correction facility provided by TRACES can also be used for closing the above defaults by suitably tagging the challans.