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Help Needed with Correction of TDS Form 27Q for Short Deduction

kalyani bhawsar (Full Time Investor) (363 Points)

02 August 2024

Hi,

I am currently filing a Correction of TDS form 27Q for a short deduction and need some guidance on what "amount paid to seller" I should use while filing the form. Here's my situation:

I have already made the payment to the seller and recorded that amount in the first row when I initially made the deduction.
Now, for the second row, I'm unsure what "amount paid" I should use since I have not paid anything additional to the seller the second time.

Despite making corrections, I keep receiving short deduction requests from TRACES. Can anyone guide me on how to resolve this issue?

Thanks in advance!

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4 Replies

NARENDRA (ACCOUNTS MANAGER) (1994 Points)
Replied 02 August 2024

First of all please be clear what kind of correction you want to make??

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kalyani bhawsar (Full Time Investor) (363 Points)
Replied 02 August 2024

I have to make entry for short deduction (SD) using RPU. I have already paid the SD amount and also added the challan.

BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)
Replied 02 August 2024

While making correction, divide the amt to both the rows and mention the tax amt and file the return.

kalyani bhawsar (Full Time Investor) (363 Points)
Replied 05 August 2024

Thank you for your suggestion. I have already made the correction, but I received another short deduction (SD) notice. Here is a detailed example of the amounts involved, which might help in identifying where I am going wrong:

Total Amount to be paid to the Seller before TDS: Rs 39,00,000
TDS Rate: 3% (Applied for lower TDS)
TDS paid: Rs 1,17,000
Amount paid to the seller (After TDS): Rs 37,83,000
Amount eligible in the TDS Certificate: Rs 38,50,000
Amount in first SD notice: Rs 1,050 (duly paid)
Amount in second SD notice: Rs 990

While correcting Form 27Q, I have divided Rs 37,83,000 in 2 rows, with 37,00,000 in the 1st row (TDS 117000) and Rs 3000 in the 2nd row (SD of Rs 1050).

Despite correcting and paying the first short deduction notice, I keep receiving additional SD notices. Can anyone help me understand what might be causing this and how to resolve it?

Thanks in advance!