Is Change of PAN of Deductor possible?

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This query is : Resolved

Quick Summary

This discussion addresses the issue of depositing Tax Deducted at Source (TDS) under the incorrect entity, specifically when a proprietorship's transactions were mistakenly processed under an LLP. The core problem is how to rectify the TDS returns to reflect the correct deductor (the proprietorship). Initial advice suggests revising the LLP's TDS return and adjusting future payments, but it's clarified that a direct correction of the deductor's PAN isn't possible in the same way other fields can be amended. The recommended solution involves removing the erroneous data from the LLP's TDS return via a correction filing and then correctly filing the TDS return for the proprietorship business with the accurate details.

Suraj

Suraj (Querist)
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13 June 2022 Dear Sir,

Mr A is having two entities, a proprietorship business and an LLP. Both the entities are liable to tax audit.

There were few transactions of the Proprietorship business on which TDS was liable.

However, Mr A mistakenly has deposited TDS under LLP and filed TDS returns for those transactions under LLP business. i.e. under wrong deductor. The TDS return for Q4 filed on 15/05/2022.

I request you to guide me as to how to resolve this issue. How to rectify the TDS return giving effect to correct deductor i.e. the proprietorship.

Kindly revert.

Thanks & Regards,
Suraj

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 June 2022 Revise TDS return of LLP and adjust TDS payment in future payments.
Include TDS in prop business and pay TDS and file return.

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Suraj

Suraj (Querist)
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13 June 2022 Thank You Sir.
That means if the deductor is incorrect, we can not correct it like we can correct assessment year, PAN of the deductee, Section etc.

We have to remove all data from TDS return of LLP by filing correction return and include that data in TDS return of the Correct deductor i.e. Proprietorship and file its revised return. Is my understanding correct??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 June 2022 Yes you are right.
If this is only TDS of LLP then try correction of deductor in TDS return and as well as in the challan.

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Suraj

Suraj (Querist)
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13 June 2022 Thank You CA R Seetharaman Sir.

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