TDS DEDUCTED AT 20% DUE TO INOPERATIVE OF PAN WHETHER THAT TDS CAN BE CLAIMED IN RETURN OF INCOME.

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Quick Summary

If your PAN was inoperative because it wasn't linked to your Aadhaar, and TDS was deducted at a higher rate (20% instead of 1%), you can claim this excess TDS as a refund. Even though the deductor received a demand notice, the deducted amount is reflected in your Form 26AS. Once your PAN is linked to Aadhaar, you can claim the higher TDS deducted in your income tax return.

suhas potadar

suhas potadar (Querist)

01 March 2024 One person has not linked his pan to aadhar card and due this reason his pan was inoperative. He has not a return filer. So he missed to link. Now he has came into a contract of property of property sale. In that section 194QB has been applicable. The deductor has made the TDS at 1%. But due to inoperative of pan the deductor has received demand notice of 19% amount i.e.(20%-1%). The deductor has deposited some amount against the demand amount.
Now we have checked the 26AS of deductee the amount are reflecting in 26 AS. In 26AS part IV column demand payment for 1% amount it is showing as NO and in second row it is showing as demand amount yes.
Whether we can claim that 20% deducted amount in our return of income which was due to inoperative of pan. Now the client has linked pan to adhar.