BI CFO / Notice Desk / Guide
TDS default notice under section 200A
| What it is | The result of processing your TDS statement, showing defaults |
| Deadline | Pay or correct as soon as possible; interest keeps running |
| Risk | Medium: demands, interest and blocked TDS credit for your payees |
| Our fee | ₹3,500 per quarter statement |
Send your notice to a CA Free first look within 1 working day.
Common defaults
- Short deduction: wrong rate, wrong section, or higher rate for missing PAN
- Short payment: challan amount less than TDS reported
- Late payment interest at 1% or 1.5% a month
- Late filing fee of ₹200 a day under section 234E, up to the TDS amount
- Challan or PAN details entered wrongly
How to fix it
- Download the justification report from TRACES to see each default line by line.
- Pay any genuine shortfall with interest.
- File a correction statement for wrong PANs, challans or sections.
- Recheck the demand on TRACES after processing.
Income tax notices about years up to tax year 2025-26 still cite the Income-tax Act, 1961, which is why most notices issued today use the familiar section numbers. Notices about tax year 2026-27 onwards cite the renumbered sections of the Income-tax Act, 2025; the process is broadly the same.
Common questions
Do my vendors lose their TDS credit?
Yes, until the statement is corrected. Errors in PAN or challan details stop credit appearing in their Form 26AS.
Can the 234E fee be waived?
Generally no; it is a fixed fee for late filing.
Got this notice?
Upload it and a CA tells you what it means, the deadline, the risk and the fixed fee to reply, within 1 working day. The first look is free. Send your notice to a CA.
Related guides
- Section 143(1) intimation: what it means and what to do
- Defective return notice under section 139(9)
- Section 245: refund adjusted against an old demand
- Section 148A notice: before your assessment is reopened
- Section 143(2) scrutiny notice: what happens next
- GST ASMT-10: discrepancies found in your returns
- GST DRC-01A and DRC-01: before a demand is confirmed
- GSTR-3A: notice for not filing GST returns
- GST registration query, suspension or cancellation notice
General information as of October 2026, not advice on your case. Rules change; check the notice and current law, or ask us.