FAQs
Categories
Sub-Categories
- (Q1.)What is Short payment?
- When the Deductor fails to deposit whole or part of the TDS/TCS to the Central Government's account or fails to quote the proper Challan/BIN details in TDS/TCS statement, then Short Payment arises.
Short Payments can arise due to following reasons:
* Short Payment due to Challan Mismatch (Unmatched Challan) - When Deductor mentions wrong challan details in the statement.
* Short Payment due to less tax deposited.
* Short Payment Due To Insufficient amount (Overbooked challan) - When Deductor claims more amount than the available balance of challan amount. - Provisional Interest for short payment is calculated from date of deduction to date of processing of the statement.
Deductor needs to deposit principal amount of Short Payment along with interest @ 1.5% per month till the date of deposit and file the correction statement for the same. - Yes, Deductor can bifurcate the single Challan multiple times in the statement but credit given to the Deductee tagged against the Challan should not be more than the available challan amount.
- Deductor needs to mention correct section code in the statement against Deductee because statement's section code is considered for consumption purpose.
- No, challans can be used either in the same financial year or within the range of +/- 1 Financial Year only i.e Challan of F.Y 2013-14 can be used in all the quarters of F.Y 2012-13, F.Y 2013-14 and F.Y 2014-15.
- Q2, Q3 can be used in - 1 quarter only not in +1 quarter and Q4 and Q1 BIN can be used in -1/+1 quarter
Note: BIN cannot be used to clear Late Payment and Late filing fee (BIN of same quarter can only be used to clear demand of Short Payment and Short Deduction).
