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TDS RETURN

pawan (service) (93 Points)

23 December 2009

AS WE KNOW THAT W.E.F.01.10.09 IF THE DEDUCTEE DOESNOT PROVIDES PAN WE HAVE TO DEDUCT TDS IN CASE OF CONTRACT U/S 194C.

I WNAT TO KNOW THAT HOW ONE CAN FILE TDS RETURN WITHOUT HAVING 85% PAN OF THE DEDUCTEE.

THANKS IN ADVANCE.

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5 Replies

FATEMA (CHARTERED ACCOUNTANT) (719 Points)
Replied 29 December 2009

Hi pawan,

In case the valid PAN of the deductee is not available, the deductor is expected to provide the detail as:-

PANAPPLIED in case the deductee does not have a PAN but has applied for the PAN and provided the proof of application (i.e. the acknowledgment)

PANNOTAVBL where deductee has not given any PAN or proof of PAN application.This means PAN is not available.

PANINVALID where the deductee has provided PAN but is structurally invalid.

Regards

Fatema

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Shudhanshu Agrawal (Business) (2570 Points)
Replied 29 December 2009

Accroding to me it is better is you find any person whi doesnt have PAN ask him to apply for the PAN no. as you can tell him that you will deduct TDS from his Income and if he/she will not provide PAN then he/she will not be able to take credit of the TDS and also tell them about the applicability of Section 139A of Income Tax Act, 1961.

Bimal Thacker (Proprietor) (762 Points)
Replied 29 December 2009

Dear Pawan

For filling TDS return you should mention only the persons from whom VALID PAN is available. However the TDS deposition details of total amount deposited should be mention. Whenever the details of PAN received the the correction report you should file. Don't wait for PAN no. file return within time. The person who has not provided PAN will not get credit.

FATEMA (CHARTERED ACCOUNTANT) (719 Points)
Replied 29 December 2009

Dear Bimal,

we need to wait for the PAN no. to file the returns because the FVU shows an error if we do not feed in 85% of the PAN nos.

Then NSDL came up with the solution to the problem which arose when the deductees did not provide the PAN.and hence we need to write PANAPPLIED, PANNOTAVBL and PANINVALID whichever is applicable

Bimal Thacker (Proprietor) (762 Points)
Replied 29 December 2009

Dear Fatema

PANAPPLIED, PANNOTAVBL and PANINVALID is comes under 15%

If Out of 100 deductee of which total TDS deducted Rs. 25000 and deposited also Rs. 25000 and you have only PAN of 50 deductee of which total deducted comes to 20000.

In these case you should fille details of above 50 deductee from which you have received valid PAN (deduction details will be rs. 20000 in the above case). However while entering the details of deposition the amount should enter Rs. 25000 (otherwise error will be mismatch)

entering above you will not find fvu error. and you can filr correction return whenever the details of balance 50 deductee received of which TDS amount is Rs. 5000