TDS penalty on less interest payment

Rajendra Tiwari (Accountant) (25 Points)

05 April 2022  

I deposit TDS on purchase of property for the payments made to builder. This time I deposited the payment late i.e. for the payment made on 27 Jan 22, the TDS deposit was done on 23 March 22, with interest. I made a mistake in calculating the interest and instead of 3 months of interest I deposited for the two months. Now after 5-6 days I got a demand notice from Income tax department asking to pay the penalty of Rs.4200 for that 1month of less interest. I deposited only Rs.80 less and I did it myself. The total TDS deposit was Rs.5504.So I have to pay double the amount in lieu of the Rs. 80 short payment.

So instead of asking me to deposit the extra interest they are considering the TDS deposit as late and adding late fee of Rs.200 per day for 21 days. Is there any way to get it fixed except making the payment of demand amount. I think this is very very unfair.