Friends,
Approx one or more months back, I was in view
that there is any lapse in the
software of Income Tax department
that they have charged 20% TDS on
having correct Pan Numbers. No doubt that the correct PAN's were updated
through correction statements by
deductor. In the first attempt there was error in PAN's. I had contacted
customer care of TRACES but no
satisfactory reply was received.
Generally, they told that send screen shoots of the
error images along with active pan images etc. Now again as I had asked
them/TRACES for the reason of charging of 20% on correct PAN ,
they have given below reply which is very serious for
deductors :-
Reply received from TRACES is given 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.
Note : Please note
that online Facility for PAN and Challan correction in
TDS statements is now available
at TRACES (www.tdscpc.gov.in). Please refer to the e-tutorials for necessary
details.
Regards,
Team TDS
CPC
Keeping in view of the above details ,
deductors are required to take care in submission of PAN in TDS return. There
are too many limitations for correction in PAN through
correction statements by Income Tax
Department.
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