Centralized Processing Cell (TDS) has observed from its records that though you have reported deductees with more than Rs. 50,000 of TDS in your Quarterly TDS statements, but the PANs are either ‘Not Available’ or ‘Invalid’. The ‘Invalid’ PANs appear structurally valid, however, they are actually incorrect, as they are not available in the PAN Master records.

Please note the following details in reference to your TDS statements for Financial Year 2013-14 only for Form types 24Q & 26Q:

Form Type 24Q:

PAN Not Available PAN Applied For Invalid PAN
Instances TDS Instances TDS Instances TDS
Q1 2013-14
Q2 2013-14
Q3 2013-14
Q4 2013-14

Form Type 26Q:

PAN Not Available PAN Applied For Invalid PAN
Instances TDS Instances TDS Instances TDS
Q1 2013-14
Q2 2013-14
Q3 2013-14
Q4 2013-14

Immediate Attention:
Quarter wise details of PANs and transactions, where such errors have been identified are available in the Justification Reports that can be downloaded from TRACES. Therefore, you may take immediate steps to correct Invalid/ Incorrect PANs that have been reported in the statement. In case, the PAN was Not Available / Applied For at the time of reporting the transaction, the deductee may be contacted and respective PAN may be replaced.

What is the impact:

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

  • 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.
  • 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.
  • 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.
  • 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.

What actions to be taken:

  • TRACES provides for a user friendly “Online Correction facility with Digital Signatures” for correction of PANs. To avail the facility, you are requested to Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down menu.
  • You may also download the Conso Files and Justification Reports from TRACES to identify the above errors and submit C5 Correction Statement to correctly complete the details of the deductees.
  • PAN Verification facility on TRACES can be used for verifying the deductees. You are requested to Login to TRACES and navigate to “Dashboard” to locate “PAN Verification” in the Quick Links menu.
  • You can make use of the “Consolidated TAN – PAN File” that includes all the valid PANs attached with the respective TANs. To avail the facility, Login to TRACES and navigate to “Dashboard” to locate “Consolidated TAN – PAN File”.

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0 responses to “TDS statements – 'Not Available' or 'Invalid' PAN – Impact & action”

  1. 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

  2. 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?


    I require TDS Credit details on PAN: AABAR6107P


    Dear Sir,

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