Late Payment and Late Deductions

Hello Everyone,

In this post, we will learn how to rectify the default of Late Payment and Late Deduction via Saral Pro.

Before proceeding, just to know the type of default;

  • Late Deduction is raised when TDS is deducted after the payment of the amount to the deductee. It may arise due to a mistaken record entry or actual default.
  • Late Payment is raised when the tax amount is not paid within the due time, i.e. seven days for the month of the tax deduction.

Ahead of starting the correction, make sure to;

  • Identify the type of defaults raised for the said Form-Quarter-FY
  • Request and download the required Conso FIle and Justification report.
  • Pay tax (if needed) and add the challan to the statement via Online correction in the TRACES portal.

Select the respective form, financial year, and quarter, and select the type as Correction from the drop-down.

Under the Justification Report tab, import the Justification report file, which can be in ZIP format or Text Format.

On importing the justification report, the records identified for the default for late deduction will be listed in the Late Deduction section, and those defaults specified for late payment will be listed in the Late Payment section.

Let us begin with the default correction. We will start with Late Deduction by clicking on the said section, and all the records identified for the default will be viewed.

As highlighted in the screenshot, we can now set the action for each record from the Set Action list. Select the required record and click on the action needed from the Set Action list.

There are three types of action sets which are as follows;

  • Update Deduction – This will set the record to be updated in the upcoming process. The details that can be updated are the section, linked challan, payment and tax amount, and payment and tax paid date. 
  • Add to Pay Interest: This will add the interest amount as mentioned in the record for payment.
  • Nullify Deduction Record: This will set the payment and tax amount to zero. 

Once a particular record is set for an action, that record will be moved to the Action Set.

We can view such records under the Action Set tab, indicating the Action set to each record.

Like the Late Deduction, the late payment default records are viewed under the Late Payment tab. The Set Action for late payment is similar to that of Late deduction.

Note : 

  1. If there is any mistake in the action set to the records(Late payment or Late Deduction), select the record under the Actions Set tab and click on the UNDO. The record will then be moved back to the Defaults pending tab.

2. The Clear All option will clear all the records set for action and take us back to the Import Justification Report page. Hence, use this option only to remove the entire correction process.

The next step of correction will be read in the next part of the blog. It ends the reading to default handling of Late Payment and Late Deduction in Saral Pro.