Following are the types of Defaults that may get generated on 26QB processing:-
1.Short Deduction:
Short deduction is computed when the rate at which TDS Deducted’ is less than 1%.
Short Deduction Computation u/s 200A
| Sr. No | Section Code | Amount Paid / Credited as per 26QB (Rs.) | TDS Deposited as per challan (s)(Rs.) | Rate at which Deposited as per 26QB (%) | TDS Rates as per Act(%) | TDS Deductible(1% * Amount Paid/credited as per 26QB)(Rs.) | Short Deduction (Rs.)(Col 7 – Col 4) |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| 1 | 194IA | 9252000.00 | 9252.00 | 0.10% | 1% | 92520.00 | 83268.00 |
2.(a)Late Payment Interest:
When deductor deposits the TDS after due date of challan deposit, it is a case of late payment and interest will be charged accordingly. Late payment interest will be charged @ 1.5% per month from the date of tax deduction to date of tax deposition.
Late Payment Interest Computation u/s 200A read with Sec 201(1A)
| Sr. No | Date of Deduction as per 26QB(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(Col 4 – Col 3) | Interest on Late Payment U/S 201 (1A)(Rs.)(Col 5 * Col 6 *1.5% |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| 1 | 28-Feb-14 | 7-Mar-14 | 10-Mar-14 | 6620 | 1 | 99 |
* Due date of TDS deposit will be by 7th of the next month of the month for which transaction is reported.
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 dedution interest is computed. Late deduction interest is charged @ 1% per month from date of transaction to date of tax deduction.
Late Deduction Interest Computation u/s 200A read with Sec 201(1A)
| Sr. No | Date of Payment/credit as per 26QB(dd-mmm-yyyy) | Due Date of Deduction (dd-mmm-yyyy)* | Date of Deduction as Per 26QB(dd-mmm-yyyy) | TDS Deductible(1% * Amount Paid/credited as per 26QB)(Rs.) | Period of Delay in Months(Col 4 – Col 3) | Interest on Late Deduction U/S 201 (1A)(Rs.)(Col 5* Col 6)*1.% |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| 1 | 27-Feb-14 | 27-Feb-14 | 10-Mar-14 | 6620 | 2 | 132 |
* Due date of deduction will be date of payment/credit whichever is earlier.
3.(b) Interest on Short Deduction
Short deduction interest is calculated @ 1% per month on 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 apply.
Short Deduction Interest Computation u/s 200A read with Sec 201(1A)
| Sr. No | Short Deduction (Rs.)(as per Col 8) | Date of Payment/Credit as per 26QB(dd-mmm-yyyy) | Order Passed Date as per intimation(dd-mmm-yyyy) | Period of Delay in Months(Col 4 – Col 3) | Interest due to short deduction (Rs.)(Col 2 * Col 5 * 1%) |
| 1 | 2 | 3 | 4 | 5 | 6 |
| 1 | 83268.00 | 7-May-14 | 12-Feb-16 | 22 | 18304.00 |
4.Late Filing Fee:
As per section 234E, where a person fails to file the TDS/TCS statement within the due date prescribed in this regard, and then he shall be liable to pay, by way of fee, a sum of Rs.200 for each day during which the failure continues. Fee amount will not exceed TDS deductible as per 26QB filed.
Late filing fee Computation u/s 234E
| Sr. No | Due Date of Filing of 26QB*(dd-mmm-yyyy | Date of deposit of challan(dd-mmm-yyyy) | Delay in Filing(No. of Days) (Col 3- Col 2)) | Fee per Day(Rs.) | Total Fee(Rs.)(Col4 * Col5)) | Total TDS Deductible(1% * Amount Paid/credited as per 26QB)(Rs.) | Fee Payable = Min(Col 6, Col 7)(Rs.) |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| 1 | 7-Mar-14 | 10-Mar-14 | 3 | 200 | 600 | 6620 | 600 |
* Due date of filing will be by 7th of the next month of the month for which transaction is reported.
Note:
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.
Source: TRACES