Correction in TDS return

YOU JUST NEED TO REVISE TDS RETURN GIVING CORRECT PAN.

AND ACCORDING TO ME IF YOU DEDUCT 20% TDS THEN THE CLIENT WILL GET DEDUCTION OF 20% 

The amount demanded by dept. is not required to be paid as the mistake was rectified by quoting correct PAN in TDS statements. The outstanding amount determined by the dept. will be automatically waived when correction statements are filed with the correct PAN. You can view the outstanding amount if any in the TRACES website-https://contents.tdscpc.gov.in/ by using the user id and password under the heading DEFAULT SUMMARY.

Dear Sivramkrishnan

The Default is still  shows as its, I had filled revised return submitting correct PAN but still agian i got notice for demand

Dear Suksham Arora

I have not deducted 20% just i hade submitted wrong PAN thats why department is demanding 20 %.

Are you sure if I pay as per 20% now then the deductee will get credit of full 20%, if it is so i can pay as per 20% dept. and cann take back balace 18% from deductee..

Thanks

Dear Shyam,

Verify the status of correction return filed.

First of all understand the concept behind 20% tds and 2% tds. As per relevant sec of tds if the party whose tds is to be deducted doesnot provide correct pan than 20%tax is to be deducted.however if pan is provided than the tds rate that is 2% in your case to be deducted and same was done. As wrong pan was provided in tds statement filed by you therefore as discussed above 20% tds is to be deducted. However if pan is corrected by filing revise return than the tds notice received from cpc gaziabad automatically get nullified. Therefore you are not required to pay balance 18% tds. On the other hand even if you pay 18% tds recovering same from the concerned party

Than also the party will get full claim of 20% ( not advised to do as same is not required if you have filed correction statement)

Than also the party will get full claim of 20% ( not advised to do as same is not required if you have filed correction statement)

To All Fellow Members Let Me Enlighten  You All With The Latest Stupid Rule of TRACES...Which Read As Below:

 

"The Short Deduction u/s206AA would be calculated in all the cases of Invalid PAN. The Short Deduction would be waived off upon the correction of Invalid PAN only in case the difference between the Invalid and Valid PAN is less than or equal to 2 alphabets and /or 2 numeric characters."

Hope That Clears Thread Owners Issue.

 

And Yes If You Deposit Diffrential 18% With Interest (If Any), Then Deductor Will GEt Credit of 20%

 

Regards

CA Kumar Ajay

+91 95559 80200

cakumarajay @ hotmail.com

File correction statement online through traces but in case of online correction you have required digital signature .