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Procedure for filing TDS returns with insufficient deductee PAN

 

As per instructions issued by the Central Board of Direct Taxes (CBDT), it is

mandatory for deductors to file TDS/TCS statements with a threshold limit of

Permanent Account Number (PAN) of deductees. To facilitate deductors who face

problem in filing TDS returns because of insufficiency of PAN of the deductees and

also to accommodate the deductees who have intimated their PAN, the Income Tax

Department (ITD) has specified the following procedure for filing TDS/TCS returns:  

 

• Deductors can file a return containing deductee records which meets the

specified threshold limit of PAN quoting, i.e., a deductor can file a return

containing deductee details who have provided valid PAN. It can

subsequently file a correction return with details of remaining deductees.  

E.g. as below:  

o Suppose a challan payment of Rs.1,00,000/- has been made for non-

salary TDS against 100 deductees each with TDS of Rs.1,000/-. Under

the existing procedure the deductor will have to quote at least 85 PAN

failing which his return will be rejected.  

o If there are only 50 deductees whose PAN is available and the

deductor attempts to file a return with details of 100 deductees with

PAN of only 50 deductees, the return will automatically be rejected at

present.  

o However, if he files a return with challan amount of Rs. 1,00,000/- and

with details of 50 deductees with PAN, with deductee total of

Rs.50,000/-,  the return will be accepted. It means the deductor can

furnish the details relating to such deductees whose PANs are

available.

o The deductor can later file correction returns with other details of

remaining deductees with the same challan details, i.e., the challan

amount should be the amount deposited (in this case Rs. 1,00,000/-).  

o The return will be accepted so long as the TDS total of incremental

deductees is less than or equal to the balance of Rs.50,000/-

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