Tds

This query is : Resolved

Arijit Biswas (Querist)
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31 December 2013 Dear Sir / Madam

Department has sent intimation U/s 200A of the Income Tax Act, 1961 for PAN error. Department claim 20% TDS for PAN error. I rectify the PAN of deductee. But the department sent intimation U/s 154 of the Income Tax Act,1961 demand short deduction for PAN error. I mail TDS CPC but they are reply The rectification of demand in other cases is not done if the mismatch is more than two alpha characters & two numerics. Therefore, out of 10 characters in case of structurally valid PAN, 4 characters are being considered for rectification of demand. My query any circular for this cases, please reply.

Regards,
Arijit Biswas

@VaibhavJ

@VaibhavJ (Expert)
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01 January 2014 Hi

Did you deleted old records for wrong PAN & gave new record with new PAN or you have done correction?

Thanks

Arijit Biswas

Arijit Biswas (Querist)
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04 January 2014 Dear Sir,

Deleted option has been removed new RPU 3.8 version. Please any opinion for this problem.

Regards,
Arijit Biswas

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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27 July 2025 Hey Arijit,

This PAN mismatch issue and partial rectification by TDS CPC is a known limitation. Here are some important points and suggestions for your case:

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### Background:

* TDS CPC follows a fixed logic for PAN mismatch correction.
* As per their system, **if more than 2 alpha and 2 numeric characters differ** between PAN records, they consider it a new PAN and do **not allow automatic rectification** of demand under Section 154.
* This is why your rectification request was rejected despite correcting the PAN.

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### Relevant Circulars/Guidance:

* There is **no explicit CBDT circular** that overrides the TDS CPC’s current practice for PAN mismatch rectification.
* However, CBDT has issued clarifications on PAN correction in TDS returns, but the rectification limits are system-enforced.

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### What can you do:

1. **File a Rectification Request (if possible) under Section 154 manually:**
You can submit a rectification request to the Assessing Officer (AO) citing the PAN correction along with documentary proof.

2. **File a grievance with CPC TDS online:**
Use the official TDS grievance portal ([https://www.tdscpc.gov.in](https://www.tdscpc.gov.in)) and explain the issue with full details and proof.

3. **Re-file or Correct TDS Return:**
Since RPU 3.8 doesn’t have delete option, you need to file a correction statement to update the PAN and deductee details.

4. **If demand persists, consider filing an appeal:**
If AO issues a demand order, you may file an appeal before the Commissioner (Appeals) with valid proof of PAN correction.

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### Preventive steps going forward:

* Always verify PAN before filing TDS return.
* Use updated RPU/FVU utilities to file correction statements.
* Maintain communication with deductees to ensure PAN correctness.

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If you want, I can help draft a letter for rectification or grievance to CPC TDS. Would that help?

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