TDS SHORT DEDUCTION DUE TO PAN INOPERATIVE

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If your Tax Deducted at Source (TDS) short deduction issues stem from an inoperative PAN, there's a solution. The Income Tax Department has introduced measures allowing for corrections, especially if the PAN has since been made operative. You can now use the TRACES portal to submit correction statements online, helping to resolve defaults and potentially avoid penalties or higher TDS rates.

Senthilkumar M

Senthilkumar M (Querist)
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12 September 2025 Is there an online facility available for correcting TDS short deduction defaults caused by an inoperative PAN?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 September 2025 The Income Tax Department has issued recent circulars (CBDT Circular No. 9/2025) providing relief for TDS/TCS defaults that occurred because of inoperative PANs, especially if the PAN was subsequently made operative. If a deductor receives a demand notice because the PAN was inoperative at the time of deduction but was made active later, they may not have to pay penalties or higher TDS rates for eligible transactions.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 September 2025 TDS deductors can use the TRACES portal (www.tdscpc.gov.in) to submit correction statements for defaults resulting from PAN errors or inoperative PANs. The steps typically include:

Logging in to the TRACES website with the user ID, password, and TAN.
Navigating to the 'Defaults' tab.
Selecting 'Request for Correction' and entering required details. (Enter details such as the financial year, quarter, form type (24Q, 26Q, 27Q, 27EQ), and the latest accepted token number.)

Submitting the correction request online, which can be done with or without a digital signature.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 September 2025 Good Luck...

Senthilkumar M

Senthilkumar M (Querist)
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20 September 2025 Sir,
Thanks for your reply.
I have completed the tds correction online.

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 September 2025 Glad to learn that your problem got solved...

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