Income Tax
TDS Notice Reply
Quick answer: TDS notice reply under Section 201 / 201(1A) — short payment, late deposit, incorrect deduction — representation before AO.
₹2,999
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Why choose FinTax24
- 1500+ TDS notices resolved for AY 2018-19 to AY 2025-26
Audience
Who needs TDS Notice Reply?
- Deductors who received Section 201 short payment notice for TDS deducted but not deposited on time.
- Deductors who received Section 201(1A) interest notice for late deposit of TDS deducted.
- Deductors who received non-deduction notice for payments where TDS was not deducted at all.
- Deductors who received incorrect rate notice — TDS deducted at lower rate than applicable.
- Deductors who received Section 271H penalty notice for late / incorrect return filing.
- Foreign remittance payers who received Section 195 non-deduction notice on payments to non-residents.
- Deductors who received Section 276B prosecution notice for willful non-payment of TDS.
How it works
- 1
Notice Scrutiny & Analysis
We analyse the notice section, time limit, and specific demand or query raised by TDS-CPC / AO.
- 2
Challen & Return Reconciliation
Challan 281 deposit records reconciled with TDS / TCS return — error identified.
- 3
Reply Drafting
Detailed written reply drafted with supporting evidence — bona fide deduction / technical error / genuine dispute.
- 4
E-Filing / Paper Submission
Reply uploaded on TRACES / e-filing portal or submitted in or in-person at the AO's office.
- 5
Personal Hearing Representation
Our CA appears at the personal hearing with TDS-CPC / AO and argues the case.
- 6
Order Pronouncement & Appeal
We obtain the order, advise on appeal under Section 246A, and file Form 30 within 30 days if needed.
Timeline
Why file this
Benefits of tds notice reply
- End-to-end TDS notice reply under Section 201 and Section 201(1A) — short payment, late deposit, non-deduction.
- TDS-CPC intimation analysis — error identification and reconciliation with challan 281 deposit records.
- Section 201(1A) interest computation — 1.5% per month from date of deduction to date of payment.
- Section 271H penalty defence — reply with bona fide deduction claim, genuine dispute, or technical error.
- Form 26AS / AIS reconciliation — confirms deductee TDS credit matches with deposit return.
- Proof of deposit defence — challan 281 with correct BSR code, serial number, date, and amount.
- Section 276B prosecution defence — avoid 1-3 years imprisonment + fine for willful non-payment.
- CIT(A) appeal under Section 246A within 30 days of demand of intimation for unsuccessful notices.
Documents required
8 documents needed for tds notice reply.
- Original Section 201 / 201(1A) / 271H / 276B notice or intimation from TDS-CPC / AO.
- TDS / TCS return acknowledgment (token number, date of filing, return type).
- Form 26AS / AIS for the relevant FY — confirms deductee TDS credit matching.
- Challan 281 deposit receipts — BSR code, serial number, date of deposit, amount, section.
- TDS deduction records — deductee PAN, payment date, TDS rate, TDS amount.
- TDS / TCS certificates issued (Form 16 / 16A / 16C) for the deductee.
- Correspondence history with TDS-CPC / AO — earlier replies, hearing notices, remand reports.
- Engagement letter / power of attorney authorising CA / tax consultant to represent.
DIY vs FinTax24
Why file tds notice reply with FinTax24 instead of doing it yourself.
| Aspect | DIY / Portal | Local Tax Consultant | FinTax24 |
|---|---|---|---|
| Filing time | 7–14 days (typical) | Varies by availability and workload | 7-15 business days |
| Expert review | None | Depends on the consultant | Expert verified on every filing |
| Document check | You self-verify; rejected on portal | Manual review may vary | Pre-verified by our team before submission |
| Support | Email / chatbot | Appointment-based or office hours | WhatsApp + phone, Mon–Sat 10 AM–7 PM IST |
| Pricing | Government fees only | Consultant fee + government fees | Transparent: From ₹2,999 + govt fees |
Frequently asked questions
What is a Section 201 TDS notice?
Section 201 deems a deductor as an assessee in default for short payment / non-payment / non-deduction of TDS. The AO issues a notice showing the TDS amount in default, interest under Section 201(1A), and penalty under Section 271H. Reply within the notice time limit with proof of payment, technical error, or genuine dispute defence.
What is the Section 201(1A) interest rate?
Section 201(1A) interest is 1.5% per month (simple interest) on the TDS amount in default, calculated from the date of deduction to the date of payment. For example, ₹10,000 TDS deducted in April but deposited in November (7 months) attracts interest of ₹10,000 × 1.5% × 7 = ₹1,050.
What is the Section 271H penalty for TDS default?
Section 271H penalty ranges from ₹10,000 to ₹1,00,000 for filing incorrect / incomplete TDS return. The penalty is in addition to Section 201(1A) interest and Section 234E late fee. Defence arguments include bona fide omission, technical / clerical error, genuine dispute, and reasonable cause.
What is the time limit to respond to a TDS notice?
Time limits vary: Section 201 demand — 30 days to file CIT(A) appeal under Section 246A from demand of intimation. Section 201(1A) interest — usually 30 days to respond. Section 271H penalty — 30 days to reply. Section 276B prosecution notice — appear in or in-person within 7-15 days. Non-response leads to ex-parte order.
Can I challenge Section 201 / 201(1A) demand?
Yes. Section 201 demand can be challenged by filing a CIT(A) appeal under Section 246A within 30 days of demand of intimation. Section 271H penalty appeal also under Section 246A. ITAT appeal under Section 253 within 60 days of CIT(A) order. Pay the disputed TDS amount before appeal to avoid recovery action.
What is Section 276B prosecution for TDS default?
Section 276B prescribes prosecution with imprisonment from 1 year to 3 years + fine for willful non-payment of TDS / TCS to the credit of the Central Government. Bail provisions apply. Defence arguments: no willful default, technical / clerical error, bona fide dispute, or reasonable cause for non-payment.
What is the fee for TDS notice reply at FinTax24?
TDS notice reply starts from ₹2,999 per notice at FinTax24 — covers Section 201 short payment, Section 201(1A) interest, Section 271H penalty. Section 276B prosecution defence starts from ₹9,999. CIT(A) appeal under Section 246A starts from ₹7,999. ITAT appeal starts from ₹14,999. Complete representation included.
How long does it take to resolve a TDS notice?
Section 201 short payment / late deposit demand is typically resolved in 60-120 days through reply and AO order. Section 201(1A) interest is computed and collected by AO in 60-90 days. Section 271H penalty orders are passed within 6-12 months of the assessment. CIT(A) appeals take 12-24 months. ITAT appeals take 2-5 years.
Sources & authority: For regulations on tds notice reply, refer to incometax.gov.in , eportal.incometax.gov.in .
Last reviewed by: FinTax24 Compliance Desk · Reviewed on:
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