Excess TDS refund due to inactive PAN card

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23 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

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On 04 March 2024 at 14:34 Report
Replies (10)
Quick Summary
This discussion revolves around a user who purchased a car with an inactive PAN card, resulting in a lower Tax Deducted at Source (TDS) being collected. This has caused issues for the car seller, whose salary has been blocked. The user is seeking advice on whether they can pay the excess TDS and claim a refund once their PAN card is active, or if the car dealer will receive the refund instead. The consensus is that the buyer can claim the TDS amount after filing their Income Tax Return (ITR) once the PAN is activated, but the car dealer is the collector of TCS and the buyer is the one who can claim it.

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Finance
3328 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.

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On 04 March 2024 at 16:32
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23 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 ?

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On 05 March 2024 at 00:27
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Chartered Accountant
44442 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.
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On 05 March 2024 at 02:38
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Profession
19974 Points Posted on 05 March 2024
On an inactive pan card tds cannob bevrefunded
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On 05 March 2024 at 09:12
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Finance
3328 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

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On 05 March 2024 at 09:37
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"Do the Right Thing...!!!"
77792 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. 

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On 05 March 2024 at 10:22
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Chartered Accountant
44442 Points Posted on 05 March 2024
But here in this case TCS @ 1% only deducted and now he need to deposit more 4%
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On 05 March 2024 at 21:43
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"Do the Right Thing...!!!"
77792 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...
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On 05 March 2024 at 22:27
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77 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%.
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On 05 March 2024 at 23:49
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"Do the Right Thing...!!!"
77792 Points Posted on 06 March 2024

What is this message...??!

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On 06 March 2024 at 05:17

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