Tds pan error

This query is : Resolved

s suresh (Querist)
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27 May 2014 we have Filed TDS Return Form 26Q (Q2) 2013-14. But While filing Return We have wrongly Typed Two Deductee PAN Interchangeably .(194-H) Deducted @10% Rate (All Ten Character must be changed)
Whether I can file Revised Return?

If i File revised return any demand will raised by TDSCPC?for Interchanging 2 PAN.

Nitin Bhuta

Nitin Bhuta (Expert)
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27 May 2014 Yes you can correct the error by filing revised returns

s suresh

s suresh (Querist)
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27 May 2014 Dear Sir

My Question is if filed my revised Return .Any penalty levied? For eg: 20% Deduction Rate instead of 10% Sec 206AA

Nitin Bhuta

Nitin Bhuta (Expert)
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27 May 2014 No penalty levied for such corrections while processing e returns.

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s suresh

s suresh (Querist)
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28 May 2014 Thank You sir for your Reply

Sec 206AA Says Only pan Can Altered only change in Two Alpha Character & Two Numeric character. In this Case we interchanging Two Deductee PAN ( ALL TEN CHARACTER CHANGING)

I have Confusion of 206AA attracted ?
In Future may i receive TDS CPC notice Saying 20% Must be Deducted?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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27 July 2025 Here’s a detailed explanation regarding your TDS PAN error and revised return filing:

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### Your situation:

* You filed TDS Return (Form 26Q) for Q2 2013-14.
* While filing, you mistakenly interchanged **two deductee PANs completely** (all 10 characters changed).
* Deduction was made @10% under Section 194-H.
* Now you want to file a **revised return to correct the PANs**.
* Concern: Will any **penalty or demand** arise due to this PAN error, especially considering Section 206AA?

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### Key points:

1. **Revised Return Filing:**

* Yes, you can file a **revised TDS return** to correct the PAN details.
* The Income Tax Department allows correction of PAN errors via revised returns.

2. **Impact of Section 206AA:**

* Section 206AA mandates a higher TDS rate (20%) if PAN is **not furnished or invalid**.
* However, here you have PAN but **mistakenly swapped two deductee PANs** (both valid).
* Since PANs exist and deduction was at 10%, you are technically compliant for those PANs, but the **TDS credit might be assigned to wrong deductees** initially.
* Filing revised return with correct PANs will rectify the mismatch.

3. **Penalty or Demand:**

* Usually, no penalty is levied just for correcting PAN details through revised returns.
* If TDS was deducted and deposited at the correct rate (10%), no demand on higher rate (20%) should arise.
* TDSCPC system usually processes revised returns to update records.
* You may get notices if TDS credits are not matching, but they can be explained with revised returns.

4. **Precautions:**

* Ensure you file revised returns **as soon as possible** to avoid prolonged mismatch.
* Keep documentation for evidence.
* Communicate with deductees if needed to clarify corrections.

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### Summary:

* You **can and should file a revised return** to correct the PANs.
* No penalty or demand for 20% TDS should arise if actual TDS deduction was at 10% and PANs were valid but wrongly interchanged.
* Section 206AA doesn’t apply because valid PANs were furnished (just wrongly assigned).
* Filing revised return clears the mismatch and ensures deductees get proper credit.

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If you want, I can help draft the revised return procedure or a letter to TDS CPC explaining the correction. Want me to?

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