What is a TDS justification report and how do I read it?

Question

tdsguru.in (CA firm) · Accepted Answer

It is a TRACES report that lists every default in a processed statement — short deduction, short payment, late deduction, late payment and late filing — row by row with the amount and reason. The justification report is generated by TRACES after a statement is processed and details each default along with the deductee, the section, the computed shortfall and the interest. It is downloaded as a text file and opened with the TRACES justification-report utility. Read it row by row: identify whether each flag is a PAN issue, a rate/threshold issue, or a challan mismatch, then correct or pay accordingly. It is the single best document for resolving a demand accurately.