Tds
This query is : Resolved
12 December 2012
Dear Experts,
Kindly reply to the below mentioned query.
What is the remedy in the following situation to XYZ Pvt Ltd & to ABC Pvt Ltd.;
TDS deducted by M/s XYZ Pvt. Ltd. but was wrongly deposited with PAN/TAN of M/s ABC pvt. Ltd.
Kindly reply to the below mentioned query.
What is the remedy in the following situation to XYZ Pvt Ltd & to ABC Pvt Ltd.;
TDS deducted by M/s XYZ Pvt. Ltd. but was wrongly deposited with PAN/TAN of M/s ABC pvt. Ltd.
12 December 2012
M/s XYZ Pvt. Ltd. has to revise the tds retrun with the correct PAN.
12 December 2012
OK
but what about the credit?
I mean 26Q of ABC Pvt. Ltd shows the deposited amount.
Also form 16 will be issued by whome?
but what about the credit?
I mean 26Q of ABC Pvt. Ltd shows the deposited amount.
Also form 16 will be issued by whome?
12 December 2012
is this treatment correct?
XYZ pvt Ltd be required to pay TDS with his correct PAN/TAN &
ABC pvt. Ltd can claim refund?
XYZ pvt Ltd be required to pay TDS with his correct PAN/TAN &
ABC pvt. Ltd can claim refund?
12 December 2012
Kindly reply Sanket
12 December 2012
yes, As m/s Xyz pvt ltd has filed the return with wronh pan the credit goes in the wrong person. So company has to file the revise return with the correct pan. Therefore the dept. will transfer the credit to ABC company. and xyz ltd. has to issue form 16A in favour of ABC pvt. ltd.
03 January 2013
Hello Expert,
I've interpreted your explanation as follows:
Revise returns of XYZ pvt. ltd & ABc pvt ltd. both and give credit to correct person.
XYZ shall pay tds now
ABC shall adjust excess TDS paid against other liability of current period.
kindly guide me
I've interpreted your explanation as follows:
Revise returns of XYZ pvt. ltd & ABc pvt ltd. both and give credit to correct person.
XYZ shall pay tds now
ABC shall adjust excess TDS paid against other liability of current period.
kindly guide me
27 July 2025
Here’s the correct approach to the situation where TDS was deducted by **XYZ Pvt. Ltd.** but mistakenly deposited against the PAN/TAN of **ABC Pvt. Ltd.**:
---
## What happened?
* XYZ Pvt. Ltd. deducted TDS on payments made.
* However, they deposited the TDS using the PAN/TAN of ABC Pvt. Ltd. (wrong PAN).
* This caused the TDS credit to be reflected wrongly in ABC Pvt. Ltd.’s account.
* This creates a mismatch:
* XYZ Pvt. Ltd. hasn’t credited the right PAN (their deductee).
* ABC Pvt. Ltd. shows TDS credit which they never received.
---
## Correct Procedure to Rectify:
### 1. **XYZ Pvt. Ltd. (Deductor) Actions:**
* **File a revised TDS return** (Form 26Q or relevant form) with the **correct PAN/TAN of the deductee** (i.e., the party on whose behalf TDS was deducted).
* This will correctly allocate the TDS credit to the actual deductee’s PAN.
* **Deposit any shortfall in TDS** if applicable (since the earlier deposit was linked to wrong PAN).
### 2. **ABC Pvt. Ltd. (Wrong PAN holder) Actions:**
* Since TDS was wrongly credited to their PAN, ABC Pvt. Ltd. should:
* **File a rectification request or refund claim** with the Income Tax Department to adjust or claim refund of this excess TDS credit.
* Alternatively, adjust the excess TDS credit against their own tax liability for the current or subsequent periods.
### 3. **Issuance of TDS Certificate (Form 16/16A):**
* **XYZ Pvt. Ltd. should issue the TDS certificate (Form 16A)** to the **correct deductee** (the person on whose behalf TDS was deducted).
* Since the TDS credit was wrongly posted to ABC Pvt. Ltd., the earlier certificate (if any) with ABC’s PAN is invalid.
---
## Summary Table
| Party | Action Required |
| ------------- | -------------------------------------------------------------------------------------------- |
| XYZ Pvt. Ltd. | Revise TDS return with correct PAN, pay shortfall if any, issue Form 16A to correct deductee |
| ABC Pvt. Ltd. | File refund claim/rectification or adjust excess TDS credit against own tax liabilities |
---
## Additional Notes:
* It’s important to **coordinate between XYZ and ABC Pvt. Ltd.** to avoid prolonged litigation or credit mismatches.
* The Income Tax Department transfers the credit after revised filing, but timelines may vary.
* The deductee (actual person) gets benefit of TDS only after correction.
---
If you want, I can help you draft the revised TDS return or a formal letter to the department explaining the correction.
Would you like assistance with that?
---
## What happened?
* XYZ Pvt. Ltd. deducted TDS on payments made.
* However, they deposited the TDS using the PAN/TAN of ABC Pvt. Ltd. (wrong PAN).
* This caused the TDS credit to be reflected wrongly in ABC Pvt. Ltd.’s account.
* This creates a mismatch:
* XYZ Pvt. Ltd. hasn’t credited the right PAN (their deductee).
* ABC Pvt. Ltd. shows TDS credit which they never received.
---
## Correct Procedure to Rectify:
### 1. **XYZ Pvt. Ltd. (Deductor) Actions:**
* **File a revised TDS return** (Form 26Q or relevant form) with the **correct PAN/TAN of the deductee** (i.e., the party on whose behalf TDS was deducted).
* This will correctly allocate the TDS credit to the actual deductee’s PAN.
* **Deposit any shortfall in TDS** if applicable (since the earlier deposit was linked to wrong PAN).
### 2. **ABC Pvt. Ltd. (Wrong PAN holder) Actions:**
* Since TDS was wrongly credited to their PAN, ABC Pvt. Ltd. should:
* **File a rectification request or refund claim** with the Income Tax Department to adjust or claim refund of this excess TDS credit.
* Alternatively, adjust the excess TDS credit against their own tax liability for the current or subsequent periods.
### 3. **Issuance of TDS Certificate (Form 16/16A):**
* **XYZ Pvt. Ltd. should issue the TDS certificate (Form 16A)** to the **correct deductee** (the person on whose behalf TDS was deducted).
* Since the TDS credit was wrongly posted to ABC Pvt. Ltd., the earlier certificate (if any) with ABC’s PAN is invalid.
---
## Summary Table
| Party | Action Required |
| ------------- | -------------------------------------------------------------------------------------------- |
| XYZ Pvt. Ltd. | Revise TDS return with correct PAN, pay shortfall if any, issue Form 16A to correct deductee |
| ABC Pvt. Ltd. | File refund claim/rectification or adjust excess TDS credit against own tax liabilities |
---
## Additional Notes:
* It’s important to **coordinate between XYZ and ABC Pvt. Ltd.** to avoid prolonged litigation or credit mismatches.
* The Income Tax Department transfers the credit after revised filing, but timelines may vary.
* The deductee (actual person) gets benefit of TDS only after correction.
---
If you want, I can help you draft the revised TDS return or a formal letter to the department explaining the correction.
Would you like assistance with that?
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