How to clear demand notice due to INOPERATIVE PAN

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This query is : Resolved

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A buyer deducted 1% TDS on a property purchase, unaware the seller's PAN was inoperative. After filing 26QB, the buyer received a demand notice for the remaining 19% TDS. The seller has since linked their PAN to Aadhaar. The user is seeking a way to rectify this demand online without paying the additional 19% TDS, which amounts to a significant sum.

Jagadish T G

Jagadish T G (Querist)

08 March 2024 Dear Experts...
I have a query that one seller not linked his PAN to Aadhaar.

But buyer does not aware of this PAN inoperative, deducted 1% TDS on immovable property paid and filed 26QB now buyer got demand notice of balance 19% (20% for inoperative; 1% - already deducted)
now my query is seller now linked his PAN to aadhaar.

How to clear this demand? Kindly help me.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 March 2024 File appeal against the demand within 30 days stating seller now linked the PAN.

Jagadish T G

Jagadish T G (Querist)

08 March 2024 Can I file correction return online against this demand?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 March 2024 Yes, you can deduct additional amount of 19% and file another TDS return.

Jagadish T G

Jagadish T G (Querist)

08 March 2024 Dear Sir,
I am asking the solution to clear demand of 19% TDS and whatever you suggested to pay additional 19% is not a solution to my question and what is the use of paying 1% TDS and I know this before your answer too.

I am asking that is there any option rectify the demand online without paying addl 19% TDS.
and also 19% of TDS is not small amount to pay. It is 26L.