CPC (TDS) reminder communication to Banks: Closure of Short Payment defaults in Quarterly TDS Statements

Please refer to the earlier CPC(TDS) Communication Reference No.070/2014; dated 29th November 2014 regarding Defaults in TDS Statements for different TAN’s associated with your PAN.

The Centralized Processing Centre (TDS) has observed from its records that there are Short Payment Defaults in Quarterly TDS Statements submitted by different TANs associated with your PAN and therefore,ddownloading of TDS Certificates are currently restricted for your TANs

The details of the TANs and outstanding Short Payment Defaults against them have been provided as annexed with this letter. Financial year wise details of the above are also available to you to be viewed online on the web-portal TRACES (www.tdscpc.gov.in) under “Aggregated TAN compliance ReportPlease note that

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  • CPC (TDS) has initiated a special drive for closure of Short Payment Defaults due to Unmatched or Insufficient Challans in the TDS Statements.
  • Since the due date for filing of TDS Statements for Quarter 4, 2014-15 and distribution of TDS Certificates subsequently is approaching fast, you are suggested to close the above defaults without any further loss of time.

Order u/s 201 Intimation u/s 200A of the Income Tax Act, 1961 intimating the outstanding demand for different years has already been sent by Income Tax Department on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement to the relevant deductors (TANs).

This information is being provided to you for further necessary action for closure of Short Payment Defaults at the earliest by moving deductee rows/ matching/tagging of Unmatched challans or by payment/ tagging in case of Insufficient challans.

This would be helpful for you 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 21b(ii) of Tax Audit Report(Form 3CD) u/s 44AB of the Income Tax Act. Besides, after the closure of short payment defaults, the TANs under reference would be able to download Form 16/16A thus avoiding unnecessary inconvenience to your customers.

Actions to be taken by the TAN holders associated with you:

  • Download “Aggregate TDS Compliance Report” from our portal TRACES for the details of Short Payment defaults against each TAN associated with your PAN.
  • Quarter-wise Justification Reports can be downloaded by the referenced TANs from our portal TRACES for the details of Short Payment defaults.
  • Please use Challan ITNS 281 for payment of TDS in case of Insufficient Challans.
  • Online Correction facility provided by TRACES should be used for closing the above defaults by suitably moving deductee rows/ matching/ tagging of challans.

Notes:

  • You are requested to instruct the deductors to pay the demand and file correction statement or make the necessary correction in the statement within 15 days.
  • Short payment default may be on account of mismatch in challan particulars as quoted by you in TDS statement with the challan particulars as per OLTAS. Accordingly, the OLTAS challans may have remained unconsumed on account of mismatch. You can check the OLTAS challan details on Traces. You are requested to close the short payment default through “moving deductee rows” and “tagging” of correct challan using “online correction” facility at TRACES portal (www.tdsccpc.gov.in).
  • It is to inform that while downloading TDS certificate (Form 16/16A), deductor would be prompted to first close the ‘Short payment’ default on account of ‘Challan mismatch’, if any. As the next due date for download of Form 16/16A is 30thMay 2015, you are requested to close your defaults well in advance to avoid any issue in downloading of TDS certificates for 4thquarter of 2014-15.
  • Non-deduction of TDS attracts provisions of section 40(a) (ia) of the Income Tax Act, 1961 in your final accounts.
  • Late Filing fee and Late Payment Interest are not allowable expenses.

CPC (TDS) TEAM

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0 responses to “Close Short Payment defaults in Quarterly TDS Statements – Reminder to Banks”

  1. Rishi says:

    I have purchased first property (Flat) in Bangalore on Dec-2013 and made full
    payment to builder and they not informed me to pay TDS on purchased flat.
    but I have made TDS payment on 28-Feb-2014.
    I have received notices from TDS to Pay default amount on 26QB statement.
    Can you please guide me the process to make payment online?

    Please find below details

    Defaults have been identified in the 26QB statement filed by you for FY 2013-14,and processed by ITD u/s 200A.

  2. Bishal koirala says:

    In case in f.y in month may TDS has been deducted because of 30000 limitation and if in next
    contract on oct of rs 26000 . no tds has been deducted then in the month of jan time if he has another
    contract of 26000 then here what should i do since the limit of 75000 cross now
    whether i deduct TDS on 26000 or 20000 also and do Interst on tds has to be calculated on 26000 if yes please give me proper solution how do I calculate…
    Thanks & Regards
    Bishal Koirala

  3. vswami says:

    Of equal, rather more concern, from taxpayer -deductee’s point of view, and in their interests,is deduction in excess of what should have been done by bank. As experience shows, such excess deduction arises owing to various reasons, but mainly attributable to the ignorance /imbecility of the responsible principal officer in bank branches.In such situations, keeping in mind what Sec 200A of IT Act, in terms, provides; to be precise, in view of the scheme of things as clearly envisaged and mandated in (c), (d) and (e) of sub-section (1)of section 200A.
    It goes without having to add that,the bank is duty bound to, besides bringing on the record of Traces/the 26AS the correction of such excess TDS, as soon as noted,also allow credit to the deductee of such excess TDS; of course, together with compensatory interest thereon, and even without the account holder having to ask for it. This is an area where mostly because of lack of vigilance / awareness on the part of account holders, banks do not but follow varying practices,thereby , besides putting the affected taxpayers to face hardships vis a vis the Department, unduly enrich selves.

    Sharing own individual experience by others openly, on such or similar matters, might serve the purpose of common good.

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