PAN error in Form 24Q

• 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.

Thanks Sir for your valuable advice.

Just wanted to know had this been a case of payment of professional fee to same person, would PAN error notice come for filing of 27Q and obtaining of PAN be recommended. The foreign citizen would provide TRC and TIN etc...

Regards

Dipjyoti Majumdar

Typically, PAN errors occurring in Form 24Q are caused by incorrect PAN, name mismatch, invalid PAN structure, and inoperative PAN. Check the PAN of the employee with the Income Tax Portal/TRACES and confirm that the name is same as it appears in the PAN. Also check that the PAN is correctly entered in the return utility without any typing mistakes.

 Correct the details and re-generate and re-validate the FVU file. After proper PAN validation and revalidation, most of the Form 24Q PAN errors are resolved.

For a foreign national employee, PAN can be obtained by applying in Form 49AA at any PAN service centre, with passport and visa documents as proof. Once the PAN is issued, file a correction statement on TRACES: go to Defaults > Request for Correction, select Q4 (Jan-Mar 2026), and update the PAN field. The correction takes 15-30 days to process.

If the employee has since left India and cannot obtain PAN now, you can write a representation to your jurisdictional Assessing Officer explaining the situation, attaching proof of TDS deduction. The AO has discretion to accept this on merits.

Going forward for companies with foreign staff: collect Form 15CA/15CB documentation at engagement, and apply for PAN before the first salary run. This avoids the 206AA premium rate and the entire correction cycle.