TAN No.

This query is : Resolved

ajay goyal (Querist)
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20 January 2011 We have deposited TDS (related to Gurgaon) in TAN No. of Mumbai head office. Now received notice from Income tax office (TDS) raising demand for that TDS amount. They are suggesting that claim refund for what you have deposited in Mumbai and pay amount at gurgaon TAN No.
please suggest what to do.

Thanks & Regards,
Ajay.

Guest

Guest (Expert)

20 January 2011 Can u transfer ur entry to your mumbai office itself

ajay goyal

ajay goyal (Querist)
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22 January 2011 First of all thanks for your reply.
But that employee(s) works at gurgaon office. How can mumbai head office deduct TDS on the same.
Yeah, through branch reconciliation, we can give entry to head office.

Pls suggest......

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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26 July 2025 Ajay, your issue is common in companies with multiple locations. Here's a clear explanation and your best options:

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### 🔹 **Issue Summary:**

* TDS **related to Gurgaon employees** was deposited **under Mumbai TAN**.
* IT Department (TDS) is **raising a demand** at Gurgaon (because the PANs of employees are linked to Gurgaon TAN).
* They're suggesting to **claim refund** under Mumbai TAN and **pay again** under Gurgaon TAN.

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### 🔹 **Why This Happened:**

* TDS must be deposited **using the TAN under which the deductee (employee/vendor) is reported**.
* Since the employee is under Gurgaon location, the **TDS must be linked to Gurgaon TAN**.
* Depositing under Mumbai TAN **creates a mismatch** in the system → leads to a **demand** at Gurgaon.

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### 🔹 **Your Options:**

#### ✅ **Option 1: Do Inter-Branch Adjustment + File from Mumbai TAN**

If you're okay centralizing TDS at the **head office** (Mumbai), you can:

* **Continue deducting and depositing TDS from Mumbai TAN**.
* **File TDS returns (24Q/26Q) from Mumbai TAN** for **both Mumbai and Gurgaon employees**.
* In this case, make a **journal entry** in Gurgaon books to transfer salary and TDS to Mumbai (inter-branch transfer).

**BUT**: Make sure employee **addresses (in TDS returns)** show Mumbai jurisdiction — otherwise mismatches can still happen.

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#### ❌ **Option 2: Don’t Deposit Under Wrong TAN Again**

If you must show Gurgaon employees under **Gurgaon TAN**:

* The deposited TDS **under Mumbai TAN cannot be reassigned** to Gurgaon TAN.
* You’ll need to:

* **Apply for a refund** from Mumbai TAN (takes time, complex).
* **Re-deposit the TDS** using **Gurgaon TAN** to avoid further notices.

**This is what the Assessing Officer is suggesting.**

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### 🔹 ✅ Recommended Practical Solution:

If your company prefers **simpler compliance**:

* **Centralize TDS under Mumbai TAN**, and ensure all related employee PANs are linked to that TAN in TDS returns.
* Otherwise, if you want **location-wise compliance**, strictly deposit and file **under respective TANs** (Gurgaon for Gurgaon, Mumbai for Mumbai).

In your case, **since employees work in Gurgaon**, it’s ideal to **use Gurgaon TAN** to avoid future notices and confusion.

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### 🔹 Suggestion:

* Do **not ignore the demand**.
* Either file correction / refund under Mumbai TAN, or re-deposit under Gurgaon TAN and resolve via rectification.

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