FAQs
Categories
Sub-Categories
- (Q.1)What type of demand may be generated after processing of 26QC challan-cum-statement?
- Following Type of Defaults may be generated: -
1. Short Deduction: Short deduction is computed when the rate at which TDS Deducted is less than the applicable section rate i.e., 5%.
Example: Short Deduction Computation u/s 200ASr. No Section Code Amount Paid / Credited as per 26QC(Rs.) TDS Deposited as per challan (s)(Rs.) Rate at which Deposited as per 26QC (%) TDS Rates as per Act (%) TDS Deductible (5% * Amount Paid/credited as per 26QC) (Rs.) Short Deduction (Rs.) (Col 7 - Col 4) 1 2 3 4 5 6 7 8 1 194IB 9252000.00 9252.00 0.10% 5% 462600.00 453348.00
2. (a)Late Payment Interest: When Tenant/Deductor deposits the TDS after due date of deposit, it is a case of late payment. In such cases Late payment interest will be charged @ 1.5% per month from the date of tax deduction to date of tax deposition.
Example: Late Payment Interest Computation u/s 200A read with Sec 201(1A)
Note: As per Rule 30(2B), notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194-IB shall be paid to the credit of the Central Government with in a period of 30 days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QC.Sr. No Date of Deduction as per 26QC (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 Interest on Late Payment U/S 201 (1A) (Rs.) (Col 5 * Col 6 *1.5% 1 2 3 4 5 6 7 1 31-Jan-19 2-Mar-19 10-Mar-19 9252 2 277.56
3.(a) 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 charged @ 1% per month from date of payment/credit to date of tax deduction.
Example: Late Deduction Interest Computation u/s 200A read with Sec 201(1A)
* Due date of deduction will be date of payment or credit whichever is earlier.Sr. No Date of Payment/credit as per 26QC (dd-mmm-yyyy) Due Date of Deduction (dd-mmm-yyyy) * Date of Deduction as Per 26QC (dd-mmm-yyyy) TDS Deductible (5% * Amount Paid/credited as per 26QC) (Rs.) Period of Delay in Months Interest on Late Deduction U/S 201 (1A) (Rs.) (Col 5* Col 6) *1% 1 2 3 4 5 6 7 1 27-Feb-19 27-Feb-19 10-Mar-19 6620 2 132.40
3.(b) Interest on Short Deduction: It is calculated @ 1% per month or 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 be.
Example: Short Deduction Interest Computation u/s 200A read with Sec 201(1A)Sr. No Short Deduction (Rs.) Date of Payment/Credit as per 26QC (dd-mmm-yyyy) Order Passed Date as per intimation(dd-mmm-yyyy) Period of Delay in Months Interest due to short deduction (Rs.) (Col 2 * Col 5 * 1%) 1 2 3 4 5 6 1 453348 7-May-19 12-Feb-21 22 99736.56
4. Late Filing Fee: As per section 234E, where a person fails to file the TDS/TCS statement within the time prescribed in Income-tax Act, 1961 then the deductor shall be liable to pay, by way of fee, a sum of Rs.200 per day during which the failure continues. Fee amount will not exceed TDS deductible as per 26QC challan-cum-statement filed.
Example: Late filing fee Computation u/s 234E
Note-1: As per Rule30(2B), notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194IB shall be paid to the credit of the Central Government with in a period of 30 days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QC.Sr. No Due Date of Filing of 26QC*(dd-mmm-yyyy) Date of deposit of challan(dd-mmm-yyyy) Delay in Filing (No. of Days) Fee per Day (Rs.) Total Fee (Rs.) (Col 4 * Col 5) Total TDS Deductible (5% * Amount Paid/credited as per 26QC) (Rs.) Fee Payable = Min (Col 6, Col 7) (Rs.) 1 2 3 4 5 6 7 8 1 30-Mar-19 02-April-19 3 200 600 6620 600
Notes:
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 FY 1897. - Demand payment for TDS on "Rent of Property" can be done through Income tax Portal (www.incometax.gov.in).
For further information, please refer E-Tutorial- Demand Payment for: TDS on Property(26QB) / Demand Payment Rent of Property(26QC)/Demand Payment for TDS on Resident Contractors And Professional(26QD), Demand Payment for TDS on Transfer of Virtual Digital Asset(26QE). - Justification Report consists of various defaults/errors identified by the Income Tax Department (ITD) after processing of the form 26QC filed by tenant. Justification report provides detailed information/calculation about the defaults.
- No, Demand for late filing and interest on late payment cannot be waived off by CPC-TDS.
- Tenant can select "Other" option in the Challan for making the payment of Late filing fee u/s 234E if column for Fee is not available.
