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Many deductors receive a TDS (tax deducted at source) demand notice from the Income Tax Department. A TDS demand notice could be sent for any one of the following defaults:

  • Short payment
  • Short deduction
  • Interest on payments default under section 201(1A)
  • Interest on short payment
  • Interest on late payment
  • Additional late payment interest
  • Interest on deduction default under section 201(1A)
  • Interest on short deduction
  • Interest on late deduction
  • Additional late deduction interest
  • Short payment on account of late filing fee
  • Additional late filing levy
  • Interest under section 220(2)

The TDS demand notice does not inform the deductor about the reason behind the notice. To find out the reason for default, the deductor has to download a justification report from the TRACES website. The justification report contains all details about the TDS demand notice.

Here is a step-by-step guide on how to download a justification report:

Step 1:

Login to TRACES

Step 2:

Under the ‘Defaults’ tab, click on the ‘Request for Justification Report Download’ link.

Step 3:

Select the financial year, quarter and form type in which you wish to download the justification report.

Step 4:

Once you have done KYC validation either through digital signature or by using an authentication code, you will be shown a request number.

Step 5:

It takes 24 to 48 hours for a download request to be processed. To check the status of your request number, go to ‘Downloads’ tab and click on ‘Requested Downloads’.

Step 6:

When your request number shows ‘Available’ as the status, click on the row to download the file.

Step 7:

You will be taken a download screen from where you will be able to download the justification report.

Save the file on your computer and open it to find out why a TDS demand notice was sent to you.

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