Find
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.
ITR
Paying a genuine TDS default demand
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Provisions
Sec 201, Income-tax Act 1961 (now Sec 398, Income-tax Act 2025); Sec 201(1A), Income-tax Act 1961 (now Sec 398(3), Income-tax Act 2025); Sec 234E, Income-tax Act 1961 (now Sec 427, Income-tax Act 2025)
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.
Close
- Confirm the default amount on TRACES
- Pay through e-Pay Tax under your TAN, right year and minor head
- Wait for the challan to appear on TRACES
- Tag it in a correction statement
- Confirm the default shows nil
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