Reg rectification in pan in tds return

Save Share

This query is : Resolved

Amit (Querist)

24 September 2014 While filing one of the tds return, wrong PAN was mentioned. Assessee received a demand to pay tds @ 20% instead of normal
rate. I tried to change the PAN through online correction. TDSCPC accepted the change and I was able to download the tds certificate with the changed PAN. Now the problem is although I have corrected the
PAN, the demand is not reduced. Demand raised by TDSCPC is same as it was earlier. The reply given by TDSCPC is that you can change the PAN only for 2 characters. If you change the PAN for more than 2 characters, then although you can download the TDS certificate, the demand will be the same.

I think this is very harsh on the part of the assessee as although he has revised the return, he have to pay the demand. Please give your reply as to what should be done in such cases

Nikhil Kaushik

Nikhil Kaushik (Expert)

24 September 2014 well that is how the rules are. the only remedy is to file appeal against the demand order...

Amit

Amit (Querist)

24 September 2014 Thank you sir for your reply. But can you please tell me which rule states that even if you rectify the return you have to pay demand

Amit

Amit (Querist)

24 September 2014 In which rule it is stated pls reply

Nikhil Kaushik

Nikhil Kaushik (Expert)

24 September 2014 the rule is that if while filing the return the PAN is not available or if the PAN is incorrect 20% TDS shall apply. The TDS return structure doesn't permit more than 2 character mistakes to cover for frauds on account of first providing fictitious PAN and then correcting it later on. However, the 2 character limit is not governed by any law, therefore I advised you to file appeal.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now