Action to be taken for producing Invalid/Non-available or Wrong PANs consistently while submitting TDS Statement - CPC (TDS).

CPC (TDS) has issued a reminder communication to all deductors regarding invalid/non available PANs. CPC (TDS) further suggest to all deductors that action to be taken for consistently while submitting TDS Statement Q4 (2012-13), Q1 (2013-14), Q2 (2013-14) & Q3, 2013-14. The issued communication has been given below:

Dear Deductors,

As per the records of the Centralized Processing Cell (TDS), you have filed TDS Statements for Q1, FY 2012-13, however, no TDS Statements have been filed for the said Quarter in FY 2013-14 as yet.

If you are not required to submit the relevant statement, you are requested to submit a declaration by taking appropriate action as suggested under "Action to be taken" in this communication. Otherwise, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

Deductor’s TAN

Count of PAN Errors Q4, 2012-13

Count of PAN Errors Q1, 2013-14

Count of PAN Errors Q2, 2013-14

Count of PAN Errors Q3, 2013-14

Mandatory filing of TDS Statements:
Please refer to the provisions of section 200(3) of the Income Tax Act, 1961 read with Rule 31A, which reads as follows:

Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:

• Statement of deduction of tax under section 192 in Form No. 24Q;
• Statement of deduction of tax under sections 193 to 196D in-
• Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
• Form No. 26Q in respect of all other deductees.

It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.

Implications of reporting Invalid/ Not Available PANs in TDS Statements :

• The Deductor will not be able to provide TDS certificate to the deductee, if valid PANs are not reported.
• The correct deductee will not be able to avail the credit of TDS deducted for taxes deducted.
• 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 there under, 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.

Actions to be taken :

• Please note that 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.
• You can use the facility of Online Corrections at TRACES with Digital Signature. Please refer to e-tutorials for assistance.

It is advised to avoid submitting TDS Statements with Invalid PANs and take corrective actions at the earliest.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM