Issue of Default Demand for e-TDS/TCS return 24Q4 by TRACES.

Quarterly statement of deduction of tax under sub section (3) of section 200 of the Income tax Act, 1961 in respect of Salary for the quarter ended June/September/December/March i.e. 24Q1, 24Q2, 24Q3 and 24Q4.  Every person, being a person responsible for deducting tax under Chapter XVII-B shall, in accordance with the provisions of sub-section (3) of section 200, deliver or cause to be delivered to the prescribed income-tax authority or to the person authorized by such authority, quarterly statement which is in Form No. 24Q in respect of deduction of tax at source under sub-sections (1) and (1A) of section 192.

A new Demand Notice for the Assessment Year 2012-13 issued by Income Tax Department to Taxpayees’ on the basis of incorrect TDS Return.  On inquiry, it is found that this demand has been raised mainly due to Technical errors of TRACES.   I mean to say, PAN numbers already corrected in 24Q4 return through submission of correction return.  But tdscpc.gov.in still showing wrong pan numbers (which have already been corrected through correction return and accepted by TRACES)  marking in Red Color and have charged maximum of tax between 20% or Tax Slab charged on employee.   This percentage has been calculated on taxable amount of the each employee.

Secondly, major error was that TRACES has shown wrong Category of employee.  Deductor had entered  category of employee as Women and demand notice has been issued  assuming the same employee as Male.  

Finally It has been decided that deductor should check their record deeply and should not pay any demand notice without his satisfaction.  However justification report is also not satisfactory report till date.

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