Answer

1. F

   Facts

   A genuine TDS default is paid by challan through e-Pay Tax under the TAN, using the right financial year and minor head for TDS payable by taxpayer. The challan must then be tagged to the statement through a correction.

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 234E, Income-tax Act 1961 (now Sec 427, Income-tax Act 2025)Late fee of ₹200 a day for a late TDS or TCS statement, capped at the TDS or TCS amount
3. A

   Analysis

   Paying alone does not close the default; CPC needs the challan tagged in the statement. Example: default of ₹3,600 interest and ₹1,800 short payment for Q1 FY 2025-26; pay ₹5,400 under the TAN, then file a correction statement linking the challan to the default rows. Check the default summary on TRACES after processing.

4. C

   Conclusion

   1. 1Confirm the default amount on TRACES
   2. 2Pay through e-Pay Tax under your TAN, right year and minor head
   3. 3Wait for the challan to appear on TRACES
   4. 4Tag it in a correction statement
   5. 5Confirm the default shows nil

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