PAN Inoperative-higher TDS

This query is : Resolved

Murali (Querist)
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23 January 2025 Dear Sir,

we have deducted TDS @ 2% under 94 C, but his PAN is inoperative in the month of Dec 2024 bill booked.

now he linked with aadhar, becomes operative,

we are liable to deduct 20% or 2% in Dec 2024 because of we are filing TDS return

please confirm

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 January 2025 For the month of December TDS deduction will be at 20%.

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CA Roomi Gupta

CA Roomi Gupta (Expert)
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24 January 2025 Pan Operative or not need to be checked at the time of deductions . As it was inactive at that time TDS @20% should be deducted.

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CA ANILKUMAR B.COM FCA DISA

CA ANILKUMAR B.COM FCA DISA (Expert)
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25 January 2025 clarify whether TDS is deducted on the basis of payment or credit entry. If TDS is on the basis of payment, you are liable to pay @20%. If TDS is based on credit entry, change the date of TDS entry after operation of PAN and pay the TDS of 2% with interest.

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