TDS intimation (short deduction, interest, late fee): how to reply

CPC-TDS processing of a TDS/TCS statement flags short deduction, interest or late fee

Filed through TRACES justification report -> correction statement.

30 days from the notice date. Set by the statute or rules; counted from the notice date.

Unverified: This is to be confirmed against the notified text.

Filed as a correction statement on TRACES; no form is annexed.

• deductor/TAN/statement identification
• PAN and challan mismatch list matched line-by-line to the justification report
• independent recomputation of s.201(1A) interest and s.234E late fee
• note on the correction statement filed or to be filed on TRACES

This is a reconciliation exercise, not a legal argument, walk through the justification report line by line: PAN errors, challan mismatches, short deduction, and interest/late-fee computation. Recompute interest under s.201(1A) and late fee under s.234E independently and compare each to the demand; file the online correction statement on TRACES for anything that is a genuine data error rather than arguing it in the reply. Only escalate to a legal ground (rate applicability, exemption) where the short deduction is disputed on law, not a filing error.

1. PAN / challan corrections

   List PAN errors and challan mismatches identified from the justification report.

2. Short deduction reconciliation

   Reconcile deductee-wise short deduction flagged against the deductor's records.

3. Interest / late fee computation

   Recompute interest u/s 201(1A) and late fee u/s 234E and compare to the demand raised.

4. Prayer

   Request the demand be revised or dropped once the correction statement is filed.

• Section 200A, Income-tax Act, 1961
• Section 206CB, Income-tax Act, 1961