Tds return

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mohit mehta (Querist)
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22 January 2010 I am working with a logistics(transport) company, we enter into transport contracts with the sub contractors for serving our clients.

Now as per the amended provision if

1. the transporter furnishes PAN no tds is not to be deducted

2. if he does not furnishes PAN, tds is to be deducted

Now

While preparing tds return

I will not have to provide detail of 1 above as no tds is deducted

and as regards 2 above I cannot prepare return since I do not have their PAN No.

Kindly advise how should I prepare the return, specific to this case.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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22 January 2010 If transporter provide PAN then no deductin of TDS
if he didn't provide PAN then deposit the TDS full and when filling return don't give name of the transporter. for example you deduct 1 lakh from 10 transporters 10000/- each and only 9 provide you PAN then deposit 1 lakh TDS and while filing return give only 9 names so detail is of only 90 thousand.
Income Tax issued Deductor's manual for this. You can download it from www.tin-nsdl.com
Abstract of this manual is following:

As per instructions issued by the Central Board of Direct Taxes (CBDT), it is mandatory for deductors to file TDS/TCS statements with a threshold limit of Permanent Account Number (PAN) of deductees. To facilitate deductors who face problem in filing TDS returns because of insufficiency of PAN of the deductees and also to accommodate the deductees who have intimated their PAN, the Income Tax Department (ITD) has specified the following procedure for filing TDS/TCS returns:

â€¢ Deductors can file a return containing deductee records which meets the specified threshold limit of PAN quoting, i.e., a deductor can file a return containing deductee details who have provided valid PAN. It can subsequently file a correction return with details of remaining deductees. E.g. as below:
o Suppose a challan payment of Rs.1,00,000/- has been made for non-salary TDS against 100 deductees each with TDS of Rs.1,000/-. Under the existing procedure the deductor will have to quote at least 85 PAN failing which his return will be rejected.
o If there are only 50 deductees whose PAN is available and the deductor attempts to file a return with details of 100 deductees with PAN of only 50 deductees, the return will automatically be rejected at present.
o However, if he files a return with challan amount of Rs. 1,00,000/- and with details of 50 deductees with PAN, with deductee total of Rs.50,000/-, the return will be accepted. It means the deductor can furnish the details relating to such deductees whose PANs are available.
o The deductor can later file correction returns with other details of remaining deductees with the same challan details, i.e., the challan amount should be the amount deposited (in this case Rs. 1,00,000/-).
The return will be accepted so long as the TDS total of incremental deductees is less than or equal to the balance of Rs.50,000/-.

mohit mehta

mohit mehta (Querist)
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23 January 2010 Sir with due regards there is still some misunderstanding, you are saying that provide the PAN of 9 transporter.
But if i have their PAN why should I deduct their TDS because if PAN is provided by the transporter no tds is to be deducted.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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28 July 2025 Great question! Here's the **clarification** to resolve the confusion:

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### The key points are:

1. **If transporter provides PAN:**

* **No TDS deduction is required.**
* Since no TDS is deducted, **you do NOT need to mention these transporters in the TDS return** because TDS return reports **only deductees on whom TDS is deducted**.

2. **If transporter does NOT provide PAN:**

* **TDS must be deducted at the prescribed rate (usually 20% or 1%, depending on the section).**
* You **deposit this TDS amount** with the IT Department and **file the TDS return mentioning these deductees (even if PAN is missing).**

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### Now about the return filing procedure:

* When you file the TDS return, you:

* **Include only those transporters from whom you deducted TDS (i.e., those who did NOT provide PAN).**
* For transporters who provided PAN and no TDS was deducted, you **do not mention them in the TDS return**.
* Since the department requires at least 85% of deductees to have PAN in the return for it to be accepted, this can create a problem if too many transporters don’t provide PAN.

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### How to handle the 85% PAN rule when many deductees don’t have PAN?

* **File the TDS return with deductee details of only those who provided PAN, covering at least 85% of TDS amount.**
* The remaining deductees without PAN (and TDS deducted) can be included later by filing **correction statements**.
* The **total TDS deposited** remains the same, but you submit the details in parts.

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### Summary for your case:

| Transporter Status | TDS Deducted? | Mention in TDS Return? |
| ------------------ | ------------- | ---------------------------- |
| PAN provided | No | No |
| PAN not provided | Yes | Yes (even if PAN is missing) |

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If you want, I can help you draft the steps to file TDS return with partial PAN details and later corrections. Would you like that?

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