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
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
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.
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