Many deductor file TDS filed correction statements, which include updations from Valid to Valid PANs, after a significant delay of over an year. Such delayed correction are liable for penalty and other consequences. We have listed below the Implications and action to be taken by deductor to avoid such mistakes.

Implications of reporting incorrect Deductees in TDS Statements:

  1. The Deductor will not be able to provide TDS certificate within specified time period to correct deductee.
  2. The correct deductee will not be able to avail the credit of TDS deducted in the same financial year, in which the tax has been deducted.

  3. Under section 277 of the Income Tax Act, 1961, if a person makes a statement in any verification under this Act or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true is punishable and shall be deemed to be an assessee in default.

Actions to be taken:

  1. Please note that there are limited opportunities for Valid to Valid PAN Corrections. Correct reporting at the first instance will help in avoiding submitting Correction Statements.
  • In case of any errors observed in reporting, the Corrections must be reported at the earliest to avoid unwarranted delays.

  • The Deductor must ensure that the PANs for deductees reported in TDS Statements are valid and correct. TAN-PAN Master can be downloaded from TRACES and should be used to file statements to avoid quoting of incorrect PANs.

  • Please Login to TRACES and navigate to “Dashboard” to locate “PAN Verification” in the Quick Links menu. The functionality to download Consolidated TAN – PAN File has also been provided that includes all the PANs attached with the respective TANs.

    1. You can use the facility of Online Corrections at TRACES with Digital Signature to correct PANs.

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