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Many times we face this issue that the PAN of deductee is either showing ‘invalid’ or ‘Not available’ in database or else we made some mistake at the time of writing PAN in TDS return. So at that point we are unable to download certificate from TRACES which is the only way of obtaining authorised TDS certificate. Hence today I am covering this issue to enlighten you all as how we can correct PAN n our TDS return?

What is the impact of Invalid PAN in TDS return:

The impact of such errors is significant in nature, in view of following:

1. You would not have been able to generate TDS Certificates for deductees with such PANs. In case, you have issued TDS Certificates outside TRACES, they will not be valid.

2. In view of CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.

3. Correct TDS Credits in 26AS statements to the taxpayers will not be available and they will not be able to avail the same, while filing their Income Tax Returns.

4. As per section 206AA of the Income Tax Act, the tax is to be deducted at a higher rate, in case of “Not Available/ Invalid PANs”. Therefore, Short Deduction, including Interest is charged, if the tax has not been deducted at higher rate or Section Rate, whichever is higher, as per the provisions of section 206AA.

Pre-requisites of Online PAN correction

1. Digital Signature Certificate should be registered on TRACES before making this correction,

2. Regular statement should be processed from TRACES. In case statement is not processed by TRACES, please file C1 (Personal Information) through Conso file then you will be able to proceed with online correction.

Brief Steps for Online PAN Correction

1. Login to TRACES website.

2. Go to “Request for correction” under “ Defaults“ by entering relevant Quarter, Financial Year, Form Type , Latest Accepted Token number.

3. Correction category should be “Online”.

4. Request number will be generated.

5. Request will be available under “ Track Correction Request”

6. When request status become “Available” click on Available / In progress status to proceed with the correction.

7. Provide information of Valid KYC

8. Select the type of correction category from the drop down as “PAN Correction”

9. Make the required corrections in the selected file

10 . Click on “Submit for Processing” to submit your correction (Only Available to Admin User)

11. 15 digits token number will be generated and mailed to Registered e-mail ID

TRACES (TDS CPS) website has provided pictorial E-tutorial for the better understanding of the users. The link is as under – https://contents.tdscpc.gov.in/en/oc-pan-correction-etutorial.html

Republished with Amendments

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7 Comments

  1. Monoj Kumar Roy says:

    My pan no delinked with my CIF resulting higher rate applied n no reflection in my 26AS. I requested the BANK for RECTIFICATION ( further submitted PAN details) but the bank can not find my records in 26Q rtn . Bank is confirmed about the deduction of tds in my name from monthwise tds reports. The FRANCHISE, assigned to uploading TDS MATTERS & BANK can not find the records of mine in 26Q STATEMENTS quarter wise.
    How to find out the records and in which section of 26Q rtn the records without pan are included? It is must that my records are uploaded otherwise the summation amt of 3 quarters will not tally with the amt of 26Q quarterwise. Pl inform me what happened.

  2. Khaiser Mohiuddin says:

    Sir
    While dedecting my tds pan no is wrongly
    For the years 2019′ to 2021
    Iam reciving messages from it department for verification iam unable to succeed some error are appearing

  3. Revuru Nagesh says:

    On 30.04.2020 an Amount of Rs. 220.00 Paid under 194C, PANNOTAVBL. as the amount, below the threshold limit of
    30, 000, Tax not deducted. In Traces it is showing error. How to rectify the error in TDS correction file. Please help

  4. Praveen Kumar tandavi says:

    Dear sir,
    A Have Deducted Income tax through salary, then i have E file But Tax Deducted at source not matched what should i do now

  5. AVIJIT THAKUR says:

    This is in respect of a problem where the category of deductor has been wrongly selected in the drop-down menu of E-Tds return. The consoliadted files do not allow change of the type of deductor. Suppose by mistake a category was selected as Central Government instead of Stautory Body under Central Government.

    What is the recourse available to the deductor?

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