TDS Default for Q-2 FY 23-24

Save Share

This query is : Resolved

Quick Summary

This discussion addresses TDS defaults arising from PAN-Aadhaar linking occurring after the deduction date but before the TDS return filing. It clarifies that if the PAN was operative at the time of deduction, no default should be raised, even if linking happened later. The query also confirms that if short TDS is deposited with interest, the deductee can still claim TDS at the higher rate on their income tax return.

CA. S.S. Aggarwal

CA. S.S. Aggarwal (Querist)
Follow

25 November 2023 We have deducted TDS U/s 194 C @ 1% on 30.09.2023 and filed TDs Return in Oct, 2023 after verification of PAN - Aadhaar Link but later on Dept. issue default summary for Short Deduction for Inoperative PAN due to linking of PAN- Aadhaar after 30.06.2023.

Now my Quarry,
1. If for Dedutee Link Pan Aadhar after 30.06.2023 and pay penalty but before our Deduction even after deptt. can raise default for Inoperative PAN
2. If we Deposit short TDS with Interest than the dedutee can claim TDS on higher rate in his/her income tax return or not?

please reply

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

25 November 2023 1 No, It's operative PAN on the date of deduction.
2 yes it can be claimed.

CA. S.S. Aggarwal

CA. S.S. Aggarwal (Querist)
Follow

25 November 2023 1.if PAN- AADHAR linked after date of deduction but before filing TDS Return?
2. If deductor deposit higher TDS U/s 206CC than TDS claim available to Deductee or not?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

25 November 2023 1 No default in such a case.
2 Claim available.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now