28 May 2024
Dear Sir, We are preparing TDS Return 24Q. while preparing 24Q some of employees claimed HRA exemption more than 100000 and submitted the owner pan number. Here issue is some of employees owner pan numbers is inoperative. Is there any issue while filing the 24Q return or is there any Disallowance of HRA exemption during the processing of 24Q Return.
28 May 2024
As on date there is no clarification over the inoperative PANs of landlords, as there is no TDS to be deducted over it. Disallowance of HRA exemption to employees has not been announced till date.
10 June 2024
Thank you sir for previous reply. and i have one more doubt.
We are filed 24Q TDS return in our organisation. In that return some of employees pan number is inoperative. in Q1 , Q2, Q3 Returns also there is no error showing even though pan is inoperative and it is processed, But in Q4 Return department is raised a demand for Rs.47220. Details as follows. New Tax Regime is opted by employee. Gross salary 431468 Less: Stud deduction: 50000 Total taxable income : 381468. In justification report department is showing Inoperative pan Tax rate is 20% U/s 206AA and short deduction is Rs.47220. on what basis they are calculated 47220. is there any possibility to rectify the demand other than payment. Please clarify my doubt as early as possible.
Thanks in advance, Thanks & Regards, Bheema Reddy.
10 June 2024
In Circular No. 6/2024, CBDT provides relief to deductors/collectors grappling with the consequences of Inoperative PANs. If a deductee/collectee’s Inoperative PAN becomes operative (via Aadhar linkage) by 31st May 2024, there shall be no liability on the deductor/ collector to deduct/ collect the tax u/s 206AA/ 206CC, as the case may be, for the transaction entered into up to 31-03-2024. Check if the PAN became operative on or before 31.05.2024. The short deduction seems to be mistake of department, ask for clarification.
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