Tds worngly credited to partner's pan

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2011 Sir,

A partnership firm providing construction services on contact basis. total turnover is 1 Crore.

Firm has paid service tax on its services properly.

but it has given partners PAN no. to contractee at the time of taking contract. so Contractee deducted TDS from firm contract payment and filed TDS return on partner,s PAN card.

Now what is the solution for it.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

10 December 2011 JUST INFORM THE DEDUCTOR ABOUT THE SAME. PROVIDE HIM CORRECT PAN NO OR COPY OF PAN CARD OF FIRM AND REQUEST HIM TO REVISE THE TDS RETURN MENTIONING THE PAN NO OF THE FIRM. ONCE RETURN IS REVISED THE TDS WILL BE CREDITED IN FIRM PAN AND THE SAME WILL BE REFLECTED IN 26AS.

Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2011 Deductor not revising TDS return.

Now what can we do ?

Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2011 Deductor is not ready to revise TDS return.

Now what can we do ?????

Please help

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

02 August 2025 If the deductor is not willing to revise the TDS return and the TDS has been wrongly credited to the partners’ PAN instead of the firm’s PAN, here are the possible steps and remedies:

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### 1. **Communicate Again with the Deductor**

* Send a formal written request (email or letter) to the deductor explaining the mistake and the consequences.
* Request them to file a revised TDS return with the correct PAN of the firm.
* Provide necessary documents like PAN of the firm and partnership deed to substantiate the claim.

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### 2. **File a Complaint with TDS Department**

* If the deductor refuses to cooperate, the firm can file a complaint with the **TDS assessing officer** or the **Assessing Officer (AO)** under whose jurisdiction the deductor falls.
* Explain the situation and request the AO to direct the deductor to correct the PAN details by filing a revised return.

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### 3. **Use Form 26AS and Tax Credit Claims**

* The wrongly credited TDS will appear in the partners’ Form 26AS, not in the firm’s.
* The firm will face difficulty in claiming the TDS credit if it doesn’t reflect in its Form 26AS.
* If the firm has already paid tax on the same income, it will have to explain this mismatch to the tax authorities during assessment or filing the return.

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### 4. **Partners’ Returns & TDS Mismatch**

* The partners need to be careful not to claim TDS credit for this amount in their individual returns since the TDS was not deducted on their income.
* Claiming credit incorrectly may invite scrutiny.

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### 5. **Legal / Departmental Intervention**

* If the deductor continuously refuses, you can also approach the **Assessing Officer** for rectification or file a complaint with the **Income Tax Department’s Grievance Cell**.
* In some cases, the AO may issue directions to the deductor to correct the error.

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### 6. **Precaution for Future**

* Always ensure the deductor has the correct PAN and details of the deductee (firm or individual) before payments.
* It’s good practice to issue formal communication to the deductor clarifying the deductee details.

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### Summary:

* Deductor should file revised TDS return.
* If not, complain to Assessing Officer or tax department.
* Firm cannot claim credit unless TDS is reflected against its PAN.
* Partners should not claim credit for this TDS.
* Ensure future payments have correct PAN details.

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If you want, I can help draft a formal letter/email to the deductor or guide you on filing a complaint with the tax authorities. Would you like that?

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