Rahul (Artcled Clerk) (24 Points)
22 February 2016Dear all,
I am an articled assistant. While filling ETDS form through utility i inadvertently inserted a completely wrong PAN number due to which the resultant TDS notice was received from TDS CPC of Short Deduction @ 20%. The section 206aa mandates that only typographical erorr limited to 2 alpha and 2 numerical are allowed. But the Pan whole of it was changed. So the demand under short deduction is huge now. Is there any remedy or a way out? Please share if you have any at the earliest!
Raghavendra
(Accountant)
(53 Points)
Replied 22 February 2016
The TDS Reconciliation Analysis and Correction Enabling System (TRACES) of the Income Tax Department allows online correction of already filed TDS returns. This is a hassle-free system that does away with the lengthy process of filing the revised return.
PAN details and challan corrections can be made using the online rectification system
On logging into TRACES, the landing page has a tab "Defaults". Choose "Request for correction" option by clicking on this tab.
ujjaishravan
(accountant)
(212 Points)
Replied 25 February 2016
Guys You're all ignoring one thing., the PAN cannot be changed over and above the normal possibilities provided by tdscpc but the PAN neverthless.,and RPU or any other software will not allow you to delete an already populated row... Why are you bothering about the demand for PAN error even though you've corrected but that getting exceeds the possibility.... there's always a way out for all the TDS demand.....
You must think out of box. You're all considering one single part-the PAN correction part-..there's one more part you guys are ignoring, the "amount paid or credited part and TDS deducted part" are still editable., right???? You've to accept the demand in the following way to avoid the demand....
Like Lazurrus., if you want to raise again., you must be dead first.....
Okay for this I'll tell you the wayout.... after correcting the incorrect pan if still problem persists and TDSCPC is just askin you to "pay" the short deduction amount.... but the short deduction amount is calculated on the basis of amount as per "amount paid or Credited" field., so this is our option to pay whatever the amount we want to pay but we must "pay". if I were you I'll pay 1 rupee for the this kind of demand and I can be freed from the demand. because you must accept your losses., but quantum of losses depends on your own computation. okay I'm speaking much.,
lets come to the example:-
Error in the original filing:-
PAN(err) Amount Paid or credited TDS %
AAADT0000B 100000 10000 10
for this TDSCPC will be asking you to pay the short deduction of more 10000 due to PANERROR since the rate must be 20%.
Action taken in correction
mode Last PAN(err) PAN(corr) Amount Paid or credited TDS %
UPDATE AAADT0000 BBBBDT1234B 100000 10000 10
if you do correction like above, your demand still be kept on. however the PAN will get updated...and the coso file contains both the Last PAN and PAN same. I suggest you to do correction like the following
mode Last PAN(err) PAN(corr) Amount Paid or credited TDS % UPDATE AAADT0000 BBBBDT1234B 10 2 20 ADD BBBBDT1234B 99980 9998 10
Now TDS will be tallied with the available challan., however amount paid got reduced by 10. for this Pay a new challan for Re. 1/- and add One more row to tally the amount Paid
ADD BBBBDT1234B 10 1 10
let your party to enjoy Tax creditof Re.1/-.
be Happy and make others happy....
CAclubindia
