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PAN error in Form 24Q

TDS 99 views 2 replies

Dear Forum

Company paid salary to its employee who is a foreign citizen. The employee works remotely. As the employee does not have PAN in India, the payer company deducted TDS @ 20% under section 206AA of Income Tax Act 1961. Form 24Q submitted with both indian employees and this foreign citizen.

This is for Jan-Mar'26 quarter. For foreign citizen, the PAN reported in 24Q was 'PANNOTAVBL'

TRACES has issued a notice to rectify the PAN error and replace 'PANNOTAVBL' with valid PAN and file a correction return.

Please advise how to file a correction return. If not, how to respond or what will be the status of compliance.

Regards

Dipjyoti Majumdar

Replies (2)
Quick Summary
Salary paid to a foreign employee without PAN was reported in Form 24Q using "PANNOTAVBL". TRACES issued a PAN error notice. Experts advised obtaining the employee's PAN and filing a correction return, as this is the safest compliance solution.

  • TDS deduction @ 20% under 206AA was broadly correct.
  • TRACES notice is mainly due to absence of valid PAN in Form 24Q.
  • Best resolution is obtaining PAN and filing correction return.
  • Without PAN, legal representation can be made, but system default may persist.
  • Obtain PAN of foreign employee
  • Revise Jan–Mar’26 24Q correction return
  • This is usually the cleanest and safest resolution.


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