What is the procedure to correct the short deduction default ?
Illustration of short deduction default closure :
Example: U/s 194J Payment of Rs. 300000 has been made to PAN 1. Rate at which TDS should be deducted is 10% i.e. Rs. 30000 (300000*1%).
However, TDS Rs. 3000/- has been deducted on payment/credit amount Rs. 300000 on 01/03/2014 Screen shot 1)
Amount Paid/credited in Original:
Screen shot 1
Steps for correction:
Step 4
Enter the difference amount i.e. 270000(300000-30000) in the column Amount paid/credited and Short deduction amount of Rs 27000(10% of 270000) in the TDS column.
Follow the Correction procedure for the default interest amount as per the e-tutorial named as 'Default Correction'.
