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Advocate C P Chugh

I have raised the following query with CPC-TDS on procedure for closer of demand created by CPC-TDS in case of invalid PAN.

“Dear Sir,
 
As per Conso file there are 8 Invalid PAN which relates to records of deductee with “PANNOTAVBL” and tax @ 20% has been deducted and deposited, whereas as per JR there is short deduction in respect of deductees whose PAN are Valid but applicable tax rate has been taken as 20%.

It is being observed from the intimations received that Demand once generated for short deductions on account of Invalid PAN are not being corrected upon after submission of correction statements, updating correct PAN.
Even though in conso file the PAN are updated and reported to be correct and form 16/16A generated accordingly but in JR and demand notices those pan remain invalid and applicable tax at higher rate is applied.
Please suggest how to rectify the error so that the demand may be closed.
Thanks”
CPC-TDS replied as under.

Dear Sir/Ma’am,

Thank you for contacting us, it is our pleasure to assist you.

Your query related to PAN error default is acknowledged.

It is to inform you that the provisions of section 206AA apply at the time of tax deduction, which happens prior to the filing of statement. Thus, the deductor is expected to have a Valid PAN at the time of deduction. Only a typographical error is expected at the time of filing the TDS statement.

The demand in the hands of the deductors is being rectified in cases where the difference between the Invalid PAN and the Valid PAN is not more than 2 characters. This is being done in order to take care of the genuine typographical errors in data entry.

The rectification of demand in other cases is not done if the mismatch is more than two alpha characters & two numerics. Therefore, out of 10 characters in case of structurally valid PAN, 4 characters are being considered for rectification of demand.

Regards,
Team TDS CPC

Opinion is sought if the approach of CPC is lawful and correct.  If not what is the course of action avaialble to the deductor. Unable to find from where the presumption and powers………..CPC-TDS……….draws in respect of highlighted portion of reply.

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82 Comments

  1. manand says:

    In a quarter of TDS regular return in 26Q, I have used PAN of individual proprietor of the firm, later he provided the another PAN of partnership firm which was revised by me accordingly. Now they are again requesting us to change the pan as previous individual PAN. Can we revised the PAN of same Deductee in TDS return? Its shoving locked in online option of TDS Return correction on TRACES. Please reply.

  2. RAMESH HS says:

    Dear ALL

    Have one quiery
    I need to Make PAN correction(24Q) For AY 2009-10
    I tried to do it Through Traces,But I am not Able to do it Through Tracers Website

    Any Suggestions

    Thank You

  3. R VAIDYANATHAN says:

    sir I was wrongly entered pan no A instead of B two times in revised return after that I am not able to file a correction return to correct the pan no what can I do

  4. Pankaj says:

    In justification report, PAN is showing valid as per revised return but still there is short deduction showing demand of 20%.The reason for the demand as given by TDS-CPC was the correction in PAN was more than 4 characters.

    Is there any way to clear these demands as this is not the relavant to pay the demand?

  5. senindra says:

    i received a intimation letter from tdscpc pan card error existed in regular filling.if their is any possibility of PAN correction please anybody know the process to me
    please do the neadful

  6. TRISHA says:

    Dear Sir,
    I have a query regarding PAN correction.
    There is a deductee entry for the Financial Year: 2008-09, Quarter 4, with PANNOTAVBL.
    No demand has been raised against it. but this quarter has other demand which have to be rectified. so should i correct the PAN of the deductee whose PAN was entered as “PANNOTAVBL”?.

  7. PAWAN says:

    pls suggest whether online corerection og deductee pan can be done thru traces site if so pls advice the procedure, however when i tried thru request for correction link it didnt work but shown link valid matchd challan where their is field for correct pan but cannot be updated

  8. VIJAY says:

    unable to understand how the traces has been awarded Gold award. such a hectic site and tds rules. Accountants and ca`s are busy with TDS details for the whole year. No time for Income Tax Returns or Sales tax returns only TDS returns . oh my God save us

  9. Kanwaljit Singh Dhunna says:

    Mr Shah,

    Have you tried the Following.
    In Challan Details, enter the Challan which have all 15G/15H entries.
    In Deductee Details, enter 3 different PANs and TDS Amount as Zero.

    I suspect the Challan against 15G/15H is a dummy one with Zero amount and Last Date of Quarter as Date (as prescribed for NIL Challans). Then there must be a Challan Mismatch at the time of downloading of Conso Files. Is that so ?

    CA Kanwaljit Singh Dhunna
    9876739911

  10. trushen shah says:

    sir,

    Our TAN No is BRDU00564E.we had a following query so, plz look into this matter.

    we had a total 3 CHALLAN.out of which one is related to 15G/H,in which the TDS amt. is nil.we had a total 80 entries out of which 77 are related to 15G/H.
    and the other two CHALLAN had only 3 entries which are with PANNOTAVBL.

    due to this reason we are not able to download our FORM16A.we have tried all available option on traces’s site still we dint get any solution.so plz help us in this matter.

    the other two challan’s details are as follow
    1.BSR CODE-0290179
    2.DATE- 2/12/2014
    3CHALLAN NO.63505
    4.CHALLAN AMT. 28400.00

    B)

    1. BSR CODE-0290179
    2.DATE- 05/01/2015
    3.CHALLAN NO-63688
    4.CHALLAN AMT.337.00

    we also attached the copy what we got on traces’s site.

  11. trushen shah says:

    dear sir,sir,

    Our TAN No is BRDU00564E.we had a following query so, plz look into this matter.

    we had a total 3 CHALLAN.out of which one is related to 15G/H,in which the TDS amt. is nil.we had a total 80 entries out of which 77 are related to 15G/H.
    and the other two CHALLAN had only 3 entries which are with PANNOTAVBL.

    due to this reason we are not able to download our conso & justi.we have tried all available option on traces’s site still we dint get any solution.so plz help us in this matter.

    the other two challan’s details are as follow
    1.BSR CODE-0290179
    2.DATE- 2/12/2014
    3CHALLAN NO.63505
    4.CHALLAN AMT. 28400.00

    B)

    1. BSR CODE-0290179
    2.DATE- 05/01/2015
    3.CHALLAN NO-63688
    4.CHALLAN AMT.337.00

  12. M V S N SHARMA says:

    Mr. Himmat Singh,

    If you are an employee:

    You should send a letter to your employer to file the correction statement quoting the correct PAN NO. Please enclose a copy of your PAN CARD to the letter.

    You may even mark the copy of the letter to your jurisdictional Asessing Officer.

    Please note that this is time consuming process.

    M V S N SHARMA.

  13. Himani says:

    Just for 1 day delay in depositing of deducted tds, why 2 months interest is levied by tdscpc @ 1.5% per month.Please guide me in this regard.

  14. vijaykumar says:

    typographical error in mentioning PAN no. in form 16/A issued to a firm in the year 2009. Amount has been reconciled in a wrong PAN no. How to regularize the transaction.

  15. S Aftab says:

    In my ITR 2 for AY 2008-09 the PAN was mentioned as ASDFG0988J instead of ADDFG088J (just an example), i.e. error of just one CHARACTER. Full TDS was there and there was refund too as per the ITR. But Outstanding Demand is showing for full tax plus interest.

    PAN was correctly mentioned in all other documents.

    Please let me know how to rectify it and whom to write for the corrections.

  16. Saurabh Gupta says:

    Sir,
    I am working in a bank. I have filed Q2 TDS return from CA. I have received the TDS intimation which shows two deductees without PAN. In my system also, there PAN are not taken .
    Do i need to file correction return for the two
    IF not filed because i don’t have there PAN, does it matter or any penalty be charged on bank or on me

  17. Kanwaljit Singh Dhunna says:

    Dear Rajeev,

    Sometimes a PAN is Deleted by the Income Tax Department due to on going De-Duplication Process. If the deletion is after the filing of the TDS Return, then such PAN will be shown as INVALID in the Latest Conso File. Status for such PAN in the CPC site will be “Deleted”. Do verify the Status from CPC Site.

  18. Rajeev says:

    We have some Invalid PAN Errors in 2010-2011 in 26Q, While Correcting the same in RPU, i found some Correct (means verified with Traces and PAN Cards) PAN Nos are also marked as INVALID PAN and shown in Red, Please Guide

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