TDS DEMAND DUE TO INACTIVE PAN

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20 April 2024 There was short deduction in TDS due to the reason that PAN was inoperative due to non-linking with Aadhar details. Afterwords PAN and Aadhar were linked and we filed rectification statement but demand of short deduction has not been removed

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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11 July 2024 If you have filed a rectification statement due to short deduction of TDS caused by PAN being inoperative (non-linked with Aadhaar), and you're facing a situation where the demand has not been removed despite linking PAN with Aadhaar and filing rectification, here are some steps you can consider:

1. **Verify PAN-Aadhaar Linking:**
- Double-check that the PAN of the deductee employees is correctly linked with their Aadhaar on the Income Tax e-filing portal. Ensure there are no discrepancies in the linking process.

2. **Rectification Statement:**
- Review the rectification statement you filed to ensure it was submitted correctly and includes all necessary details, such as the corrected PAN details and the revised TDS amounts.

3. **Processing Time:**
- Sometimes, it may take time for the Income Tax Department to process rectification requests. Check the status of your rectification request on the Income Tax e-filing portal to see if it has been processed.

4. **Demand Notice Clarification:**
- If the demand persists after filing the rectification statement, review the demand notice carefully. It should detail the reasons for the demand and any specific actions required from your end.
- Contact the Income Tax Department’s e-filing helpdesk or visit a local income tax office to seek clarification on the demand notice. Provide them with all relevant documents, including proof of PAN-Aadhaar linking and the rectification filed.

5. **Professional Assistance:**
- Consider seeking assistance from a tax professional or consultant who can help navigate the rectification process and communicate effectively with the Income Tax Department to resolve the issue.

6. **Follow-Up:**
- If you have already followed the above steps and still haven’t received a resolution, continue to follow up with the Income Tax Department through appropriate channels. Persistence and clear documentation of your actions can help expedite the resolution process.

It's crucial to maintain accurate records of all communication and transactions related to the TDS rectification and demand resolution process. This will assist you in presenting a clear case to the tax authorities and ensuring compliance with tax regulations.

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