Short Deduction and Short Payment
Hello Everyone,
In this post, we will learn how to rectify the defaults of Short Deduction and Short Payment via Saral Pro.
Let us first learn what Short Payment and Short Deduction are :
- Short Deduction is raised when the TDS amount deducted is less than the actual tax amount.
- Short Payment is raised when the customer pays less than the actual payable amount.
As explained below, we can handle these corrections in Saral Pro using the Justification Report.
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 short deduction will be listed in the Short Deduction section, and those defaults specified for the short payment will be listed in the Short Payment section.
Let us begin with the default correction.
We will start with Short Deduction by clicking on the said section, and all the records identified for the default will be viewed under the Default Pending section.
We must 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 five sets of actions, which are as follows :
- Adjust Existing & Add New Deduction: This will adjust the existing record payment amount to the tax amount and create a new record of the remaining amount.
- Correct TDS Amount: This will help us update the tax amount in the record where the tax amount is wrongly entered. Note that, this can be done if an excess amount is available in the challan.
- Update Deduction: This will mark the record to be updated in the upcoming process. The details that can be updated are the section, payment and tax amount (if the amount is available in the challan), and payment and tax paid date.
- Nullify Deduction Record: This will nullify the record by making the payment and tax amount zero.
- PAN Update: This will let us modify the wrongly updated PAN number. One has to add the correct PAN in the deductee master before setting this action.
Note: To change the Name of the Deductee in a record, first Nullify the deduction record and then add it as a new record.
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.
Note:
- If there is any mistake in the action set to the records in Short 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.
Like the Short Deduction, the short payment default records are viewed under the Short Payment tab. Click on the + icon to view the records.
There are three sets of actions, which are as follows :
- Nullify Deduction Record: This will nullify the record by making the payment and tax amount zero.
- Update Deduction: This will mark the record to be updated in the upcoming process. The details that can be updated are the section, payment and tax amount (if the amount is available in the challan), and payment and tax paid date.
- Nullify and Add new deduction: This will nullify the existing record by marking the payment and tax amount as zero. Parallelly, it will create a new record with the exact details of the deduction and challan. This action can be used when the tax credit is given to the wrong party and the tax credit has to be reversed in correction.
Note:
- 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.
That completes the reading to Short Deduction and Short Payment in Saral Pro.
