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Tds default

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One of my client has received a default notice for short deduction of TDS. The client has received a certificate issued U/s 197 from Seller of the Property (who is NRI) for lower TDS rate. The same is correctly provided in the ETDS return for short deduction. However, CPC has not considered the Certificate and issued a demand for differenial tax. Now as all data in correct in the ETDS return, what is the solutions to nullify the demand.

Please suggest......
 

Replies (3)

Reply the notice, stating the facts, justifying your correctly deducted TDS calcualtion, to your Jurisdictional ITO (TDS), along with a copy of certicifate issued u/s. 197.

Go for 154
File rectification under section 154 & also give a letter to related ito stating the fact along with short deduction certificate so that they nullify your demand.


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