The Short Payment Defaults are generally due to ‘Insufficient Challans

he Short Payment Defaults are generally due to ‘Insufficient Challans’, which could be due to the following reasons:
You have adequate balance available in OLTAS challans, however, some other challans may have been incorrectly used, which are already consumed.
You have tried to consume more than the available challan amount for reporting TDS deducted in the statements.
In this respect, you are requested to take not of the following provisions of the Income Tax Act, 1961:

Consequences of failure to pay the demand:
As per the provisions of section 220 of the Act, Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.
If the amount specified in any notice of demand is not paid within the period limited under sub-section (1), the assessee
shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period
commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day
on which the amount is paid.

If any person fails to deduct or pay the whole or any part of the tax, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay under Section 271C of the Act.
Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.

Section 278A of the Act prescribes for punishment for second and subsequent offences, if any person has been convicted of an offence under section 276B.
Action to be taken at the earliest:
Download the Justification Report fromhttp://contents.tdscpc.gov.in/ to view your latest outstanding demand.

Use Challan ITNS 281 to pay the above demand with your relevant Banker, if there are no challans available for consumption.
If there are unconsumed Challans available, please use Move Deductee facility using Online Corrections, as specified below
Download the Conso File from our portal.
Prepare a Correction Statement using the latest Return Preparation Utility (RPU) and File Validation Utility (FVU).

Submit the Correction Statement at TIN Facilitation Centre.
You can use the Online Corrections facility on TRACES to submit corrections, to payoff the demand. To avail the facility, please Login to TRACES and navigate to Defaults tab to locate Request for Correction from the drop-down list.

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