Many times after filing of TDS return, Assessee received intimation from TDS CPC for short payment of TDS or in other case, when we try to put conso file request on TRACES, system is showing us the pop up message for short payment of TDS. In such case, many of us got confused as how to solved this problem. Hence, todays article is mainly focus on how to resolved issue of Short Payment of TDS.
Route Cause Analysis of Short Payment of TDS:
Route of the Issue:
- Data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
- Mistake in Challan such as interest Is not considered
- Actually, paid less due to some miscalculations of TDS on transactions
Cause due to above mistakes:
- Received Intimation from TDS CPC for short Payment
- Non processing of Conso file request
Solutions for Short Payment of TDS:
There are two options to solve this issue:
1. Through Conso file Request on TRACES:
To make the resolution process non-intrusive, CPC (TDS) proposes a new change while submitting request for download of the Consolidated (Conso) file for a particular quarter. If there is a “Short Payment defaults” on account of unmatched challans for the relevant quarter, the deductor would be provided with online view of all available unconsumed challans, which can be tagged with deductees, to close the above default.
Following are key information to be noted in this regard:
- CPC(TDS) mandates to close the above default by tagging unconsumed challans, if available in CPC(TDS) system, through online correction (without digital signature).
- In case there is no available challan for consumption, the deductor is required to first deposit the due tax in the bank and then the same challan will be available for tagging in CPC(TDS) system after around 3-4 days of deposit.
- The Online Correction facility of TRACES needs to be used for closure of the Short Payment default.
- The user will not be able to download Conso file for the relevant TDS statement on closure of the above default.
- Once the challan is suitably tagged, CPC(TDS) shall suo moto reprocess the cases thereby reducing the Short Payment default by equivalent amount.
What Actions to be taken:
- During submission of request for Conso File, a message will be displayed, if there are Short Payment defaults in the TDS statement and instructions will be provided to submit Online Correction.
- Details of defaults will be provided during Online Correction process.
- In case of insufficient challans, please use Challan ITNS 281 to pay the demand or use any other Challan, which has adequate balance available.
- Submit an Online Correction using the functionality on TRACES to tag the challans with deductee rows. Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down list.
Online Challan Corrections:
- A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
- Unmatched challans can be corrected and tagged to Deductee rows in the statement.
- The corrections in TDS statements can be raised even without Digital Signature.
- Correct KYC information needs to be submitted for the purpose of validation.
- All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard.
2. Direct Request for Correction:
1. Use Challan ITNS 281 to pay the demand with your relevant Banker, if there are no challans available for consumption. Please wait for 2/3 days for the challan to be updated with TRACES.
2. Please download the Justification Report from our portal TRACES to view your latest outstanding demand.
3. Please use the Online Corrections facility on TRACES to submit corrections, to payoff/ close the demand.
4. To avail the facility, please Login to TRACES and navigate to Defaults tab to locate Request for Correction from the drop-down list. You can refer to our e-tutorials for necessary help.
5. In case of Short Payment Defaults due to Unmatched Challans, please use Tag Unmatched Challan facility using Online Corrections.
6. In case of Short Payment Defaults due to Insufficient Challans, please use Move Deductee facility using Online Corrections. With use of this feature, a portion of the Deductee Rows can now be moved to any other Unconsumed OLTAS challan with adequate balance.
(Republished with Amendments by Team Taxguru)