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Invalid pan or pan errors

03 June 2014

Dear colleagues, I work for a private company. Recently we have got certain notices from TRACES saying that short deduction. we have downloaded the Justification report & checked the details. noticed that short deduction is due to PAN errors/ Invalid PAN/ PAN not available. We have done the corrections & filed the revised returns. When i spoke to TRACES people, they have said that even though corrections are done & filed the revised returns with correct PAN details, you still have to pay the demand of short deduction on account of PAN errors.

Can any one please help me as to what do?

Do i still need to pay

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5 Replies

Manikanth (Chartered Accountant) (342 Points)
Replied 03 June 2014

We are also getting notices from traces stating that you have shortly deducted TDS but we did correctly. So, we also called traces people, they said all are getting it due to some problem, please simply ignore it.

R. Somasekhar Gupta (M - F) (62 Points)
Replied 03 June 2014

Hi Manikanth, Thanks for the update. However TRACES people clearly mentioned that there two cases of PAN corrections

Example : AINTR0000I is invalid PAN

revised the return with correct PAN AGTPC2222L. It means you have completely replaced with new PAN. in this particular case, TRACES people say, you still have to pay pentaly.

There is one more case like

AINTR0000I is invalid pan and there is mistake only in two digits. say for example, you have changed 3rd & 4th letter with "PT" and corrected PAN is AINPT000I. you did the correction of only two digits, then you TRACES people said that you dont require to pay

Further they mentioned that this is as per notification 41/2010

I hope the above examples would help to understand the issue.

please help me out

R. Somasekhar Gupta (M - F) (62 Points)
Replied 03 June 2014

Hi Manikanth, Thanks for the update. However TRACES people clearly mentioned that there two cases of PAN corrections

Example : AINTR0000I is invalid PAN

revised the return with correct PAN AGTPC2222L. It means you have completely replaced with new PAN. in this particular case, TRACES people say, you still have to pay pentaly.

There is one more case like

Further they mentioned that this is as per notification 41/2010

I hope the above examples would help to understand the issue.

please help me out

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 03 June 2014

u dont have to pay any demand due to pan errors or invalid pan if such pan is subsequently corrected in the correction statement. SO JUST CHILL........... but if demand is due to pan not available then you have to pay the demand because your deduction would be less than 20% for sure........... in your case you will shortly receive another intimation from tds cpc with the reduced amount of demand after correction of pan data.

CA Abhishek Goyal (Chartered Accountant) (504 Points)
Replied 04 June 2014

You are not liable for any penalty. you just wait for the Processing of the statement. bt make sure that PAN must be corrected in correction statement.