TDS Demand against non Operative PAN

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Mahboob Alam (Querist)
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20 June 2024 I filled TDS return on 10th June, in which 2 employees' PAN was not operative and therefore received demand for 20% tax deduction...
If i linked both employee's PAN & Adhar and after that file revised return then it will reduced the demand? or I must have to pay the demand.
Is there any alternate solution without paying demand. kindly answer

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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11 July 2024 If you have received a demand for 20% tax deduction due to non-operative PANs of employees in your TDS return, linking their PAN with Aadhaar and filing a revised return can indeed help rectify the situation. Here’s how you can proceed:

1. **Link PAN with Aadhaar:**
- Ensure that the PANs of the employees in question are linked with their Aadhaar numbers. This linkage is mandatory as per the Income Tax Department's guidelines.

2. **Revised TDS Return:**
- After linking PAN with Aadhaar, revise your TDS return to include the correct PAN details of the employees. When you file the revised return, ensure that you provide the correct PAN details and submit the revised return promptly.

3. **Impact on Demand:**
- Filing a revised TDS return with correct PAN details should ideally rectify the issue and reduce the demand raised earlier. The Income Tax Department will process the revised return and adjust the demand accordingly based on the correct information provided.

4. **Alternate Solutions:**
- If you have already linked PAN with Aadhaar and filed a revised return, but the demand persists or if there are specific issues with the demand notice, you may consider contacting the Income Tax Department’s e-filing portal helpdesk or visiting a local income tax office to seek clarification.
- In some cases, if the demand is related to other issues apart from PAN non-operative status (such as incorrect TDS deduction rates or other errors), resolving those issues as per the department’s guidelines may also help in mitigating the demand.

5. **Timely Action:**
- It's important to take timely action to link PAN with Aadhaar and file the revised return. The earlier you rectify any discrepancies, the quicker the department can process the revised return and adjust any demands.

Always ensure compliance with the Income Tax rules and regulations while handling TDS matters. If you face persistent issues or uncertainties regarding the demand notice or revised return filing, consulting a tax professional or reaching out to the Income Tax Department directly can provide further clarity and assistance.

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