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Tds demand notice due to pan error (inactive status of pan)

Praveen (Article) (48 Points)

26 March 2014

I have received a TDS demand notice for certain amount due to PAN error and the demand is calculated @ 20% due to PAN status in Income Tax Database as "Inactive" (Checked at TRACES website).

I approached the concerned person to get the PAN activated and the same is now "Active" as per TRACES website.

My Question is whether I have to file the correction return or do nothing. whether system will automatically consider the PAN and delete the demand because there is no change in PAN or I have to file the correction return with tag "Update" in related entry.

If anyone has gone through the above issue, please let me know or anyone who can provide some useful suggestion on the above matter.

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5 Replies

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 26 March 2014

Dear Parveen, you have to revise your tds return. Automatic updation is not done until you file a revise tds return. Regards

William Peter.a (CA Final ) (179 Points)
Replied 12 April 2014

Dear Praveen

You have to file the revised return by downlaoding consolidated file from TRACES.Automatic update is not available in TRACES.Same kind of issue we have faced,after filing the revised return only the default has been closed.

Praveen (Article) (48 Points)
Replied 12 April 2014

Thank you for your valuable suggestions. Please guide me also in following: I received demand notice for f.Y. 2008-09 for all four quarters of relating to short deduction. As the manner of correction filing I deposited the demand amount and filed correction with updating related duductee amount and adding new challan with deductee (of which short deduction relates i.e. remaining amount). but unfortunately correction return of C-3 type rejected with reason "amount claimed more than balance" and upon this rejection I have tried to file again correction return with checking proper amount of deductee and its challan and found to be not overclaimed but for the god sake again my correction return got rejected with same reason. Please suggest me what exactly this issue is "claimed amount more than balance". what kind of mistake I may be making in my correction return. To further add I have also filed some other f.y. correction return but all got accepted except these mentioned above.

Omkar Kulkarni (Accountant) (37 Points)
Replied 23 December 2023

Dear Sir,

After linking of Addhar & PAN Card of my client, PAN no is also operative now,We have filed a revised return also, but demand is still there. What to do now ?

Thanks & Regards

Omkar Kulkarni

Musrath Shaik (175 Points)
Replied 23 December 2023

It's essential to consult with a tax professional or contact the appropriate tax authorities to get advice tailored to your specific situation.

That said, in many tax systems, once you've rectified the issue that led to the demand notice, it's often necessary to file a correction or revised return to update the information. Here are some general steps you might consider:

Check with Tax Authorities: Contact the relevant tax authorities to inquire about the specific procedure for resolving the issue. They can provide guidance on whether you need to file a correction or revised return.
Correction Return: Depending on the tax system, you might need to file a correction return. This is typically done to rectify errors or update information that has changed since the original filing.

For further more detailed information on this topic visit: Tax Dеductеd at Sourcе (TDS)

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