Excess TDS refund due to inactive PAN card

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Eorl Young

3 Points Posted on 04 March 2024

Hi all,

I moved back to India after years abroad in Oct. Since I did not need an Aadhar card I never made one and applied for one on 4th Oct. But my Aadhar number has not been generated yet and for some reason the application is stuck in verification phase. On complaining they told me that the SLA for adults over 18 is 180 days so they cannot do anything.

Issue is that I bought a car without the Aadhar and the car seller sold it to me assuming that my Aadhar would be done by now and only deducted 1% TDS. Now they have blocked salary of the guy who sold me the car and I want to help him.

Can I pay the excess TDS (5%) and recover the extra TDS paid (4%) if by the time I file my tax my PAN card is activated ? Because if I can I will just pay the amount and get refund in a few months.

Thanks for the help

Replies (10)

Yasaswi Gomes new

Finance

4566 Points Posted on 04 March 2024

what is the cost of the car? TCS is applicable by them above 10 lakhs sales. Pan or aadhar is mandatory and 1% is correct. Yes, the buyer can adjust the TCS later on while making a payment towards self-assessed tax liability in later assessment years.

Eorl Young

3 Points Posted on 05 March 2024

Car was around 22 lakhs. If I understand the reply, Car dealer will be able to get the refund but not me. Is the understanding correct ?

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 05 March 2024

Just pay additional 4% TDS to the car owner and ask him to pay the balance TDS and revise the return.

sabyasachi mukherjee

Profession Business

28207 Points Posted on 05 March 2024

On an inactive pan card tds cannob bevrefunded

Yasaswi Gomes new

Finance

4566 Points Posted on 05 March 2024

This is a joke. If you paid the amount correctly, itll not be refunded lol. But if TDS/TCS amount is less than Tax+Cess, its refunded for the seller

RAJA P M

"Do the Right Thing...!!!"

128147 Points Posted on 05 March 2024

Originally posted by : Eorl Young
	Car was around 22 lakhs. If I understand the reply, Car dealer will be able to get the refund but not me. Is the understanding correct ?

Is the understanding correct ?

No...

The Car Dealer is Collector of TCS.

As per Your query and PAN the Car Dealer Collect Amount from You as per 5% TCS and paid to Govt.

You can claim the TCS amount after filing of Your ITR. Before that You must be activate the PAN.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 05 March 2024

But here in this case TCS @ 1% only deducted and now he need to deposit more 4%

RAJA P M

"Do the Right Thing...!!!"

128147 Points Posted on 05 March 2024

Yes You are exactly correct...

But, as per query the buyer will pay 4% of that balance tax. Bcoz, that sales executive's salary amount hold by the owner...

The querist will be help to the executive...

Ritesh Bijlani

100 Points Posted on 05 March 2024

1st Option is to pay 4% extra and get the pan activated and file the income tax refund and claim refund.

2nd option is to apply for lower deduction certificate before 15th March with the help of consultant, In that case pay 1% TCS only not 5%.