In the TDS Return filed, the intimation for Late Payment can be received for the following reasons:
Case #1: There was a delay in payment of TDS dues for which interest was not paid before filing TDS Return
Case #2: The interest component was present in the Challan, but the ‘interest was not allocated’
Case #3: Challan was paid on time, but owing to some error in the ‘date of deduction / payment’ in the corresponding deductee record(s)
Procedure to handle the Late Payment intimation:
Case#1: Interest not paid
- Make the payment of the interest using ITNS 281 Challan for the amount as per the intimation
- This Challan needs to be added online through TRACES
- While adding this Challan through TRACES, make sure that apart from the amount of the Challan, the interest amount is also to be entered under ‘Interest Allocation’ – this is very important
- Once successfully done, it will take 24-48 hours for the Challan to be visible in TRACES
Case #2: ‘Interest not Allocated’
- The interest now needs to be allocated against the Challan(s) through TRACES
- In TRACES, identify the Challan, and place the interest amount under ‘Interest Allocation’ – needless to say, there should be enough balance in the Challan for this allocation
- Once successfully done, it will take 24-48 hours for the modified Challan(s) to be visible in TRACES
Case #3: Error in ‘Date(s)’ in Deductee Records
- The incorrect ‘Date(s)’ in the Deductee Records needs to be rectified by preparing a Correction Statement
- This Correction Statement needs to be filed
- Once successfully done, it will take around 24-48 hours for acceptance
TDS chalan is paid on 30/04/2022, amount debited to SBI bank account on 30/04/2022. Date of tender is 30/04/2022 on chalan but date of payment appearing on chalan 01/05/2022. Payment of TDS was made through SBI after 8.00PM.
Interest is charged for delay. submitted rectification application.
Interest is charged treating payment as late, is it correct?
Yes