Interest on short deduction of tds

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arun laxman gaikwad (Querist)
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28 February 2014 Dear Sir
We have recd a notice from TDS Traces Gaziabad for the TDS returns of FY 2010-11.

In the notice they have charged demand for default of short deduction and also interest thereon.

Mistakenly instead of 2%, we have deducted TDS @1% on contractors for partnership deductees which we agree.

Now we are going to rectify these deductions in revised returns by adjusting amount paid credited according to TDS and will mention TDS rate 2%.

Our question is although we correct the TDS deduction defaults in returns, Is it necessary to pay interest on short deductions as per notice ?

Kindly advice at the earliest.

Arun

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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28 February 2014 Once you correct the data and upload it then you have to intmate the concerned ITO TDS about this and also to file rectificate about this