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20% tds demand even after correct pan given in tds return

CA Surya Pratap Singh (CHARTERED ACCOUNTANT) (67 Points)

01 February 2012

Dear Friends,

We have submitted a TDS return with NSDL. Default for higher deduction by deductor (Which happen due to non provision of PAN but Correct PAN is provided) is demanded by IT Dept @ 20% rate. We have submitted the reply to rectify the error of 20% in IT Dept record but AO of IT dept is not doing anything in this regard and informing that it is not in its power to change or rectify that error. as per NSDL representative over telecon, only AO can rectify that error.

Please suggest what to so in this case.

Hope for your reply

Thanks

S P Singh

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7 Replies

(Guest)

Direct Letter in the name of the officer who has issued notice. It is his duty to ensure that the necessary to get the necessary corrections are done.

If not done send a copy to the commissioner(TDS) , commissioner, ombudsman, tin-nsdl.com Bombay office, pune office etc.

Thus one box file. (You know sharmila chanu is fasting for the past 12 years. You can't expect any reply. It is only in your own inteest tosafeguard from the consequences you have to have a record.

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 03 February 2012

I have already faced such problem. The reason for demand is that while filing TDS return you have by mistake selected the Higher Deduction code in that line item. Remove that code and file the revised return.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 03 February 2012

a revised return with correct data is only solution.

CA Kiran Sutrave (CA) (428 Points)
Replied 01 March 2012

Surya, first of all which TDS software are you using? Few of the reasons are given above but there is also a possibility that the type of person is given wrong in the software. For example - if payee on whom TDS was deducted is an Association of Person (AOP) but in software it is mentioned as Company. This might be the reason. Not sure.

Once after checking all the probable reasons, you need to file Revised Return and an intimation of the same is to be given to the TDS Officer issuing the Notice.

CA Surya Pratap Singh (CHARTERED ACCOUNTANT) (67 Points)
Replied 02 March 2012

Dear Friends,

Thanks for your concern and replies. For further clarification, I would like to add that this entry of 20% having correct PAN and also under the category of Company. actualy no correction option is available in new TDS Utility for Higher deduction case (20%). only AO can do that rectification which he is not doing so.

Pls reply.

with warm regards

S P Singh

CA Parag Jani (BCom CA DISA Forensic Auditor) (288 Points)
Replied 02 March 2012

Go for Rectification u/s 154. TDS Demand Orders can be rectified u/s 154.

Kanwal_no1 (CA Practice ) (44 Points)
Replied 11 March 2012

Dear Surya,

As far as I know, the power to rectify the PAN doesn't rests with the AO. Only you can correct the mistake. I couldn't visualize what is the actual issue in correcting the mistake. If you can upload the .tds file, I can help you out. As per the latest updates, you can correct everything in Flag "C" entry except removing the flag "C" itself. Off course the same entry cannot be updated for "PAN correction" twice.

Regards

CA Kanwaljit Singh Dhunna