Answer

1. F

   Facts

   Besides CPC processing, the TDS assessing officer can pass an order under Sec 201 (now Sec 398) treating you as an assessee in default for tax and interest. Time limits apply, and replies are filed with documents.

2. P

   Provisions and law

   • Sec 201, Income-tax Act 1961 (now Sec 398, Income-tax Act 2025)A deductor who fails to deduct or pay TDS is treated as an assessee in default
   • Sec 201(1A), Income-tax Act 1961 (now Sec 398(3), Income-tax Act 2025)Interest at 1% a month for late deduction and 1.5% a month for late payment after deduction
   • Sec 40(a)(ia), Income-tax Act 196130% of an expense is disallowed if TDS on it was not deducted or paid by the return due date (2025 Act number to be confirmed)
3. A

   Analysis

   Typical issues are payments where TDS was not deducted at all, or deducted at a lower rate. Example: a notice lists ₹12 lakh of payments to a single vendor without TDS. Show which payments were below thresholds, which had lower deduction certificates, and where the vendor paid tax (Form 26A). Interest may remain even where tax is not recoverable.

4. C

   Conclusion

   1. 1Read the notice for years, payments and amounts
   2. 2Collect ledgers, invoices and certificates
   3. 3Get Form 26A where payees have paid tax
   4. 4File a point-wise reply by the due date
   5. 5Ask for a personal hearing if needed

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.