Short Deduction Notice

Quick Summary
This discussion addresses short deduction notices received by buyers when a seller's PAN was not linked to Aadhaar at the time of a property transaction. Many users are facing similar issues, with the Income Tax department often stating the demand is correct due to the inoperative PAN on the transaction date. Solutions explored include correction requests, appeals, and contacting tax authorities, though many find the process complex and time-consuming. Recent updates suggest that the IT department has cancelled many such demands for transactions before March 31, 2024, provided the PAN is linked by May 31, 2024, though specific procedures for cancellation are still being clarified.

I talked to the Dy Commissioner from whom I received the notice of short deduction. He was very cordial and explained me in details. He said he has no authority to cancel this order or waive off the demand. We have only 2 options now, (i) pay the amount now and claim later (by seller when he/she will file the Return next year) and/or (ii) go for appeal. It may take anything from 6 -12 months for them to give any decision on the appeal. 

Anyone who did this? Or, something different?

Still no resolution for the same, Appeal is the only hope we may have.

Ideally as per the process what is the issue with the buyer if the seller PAN is inoperative ?

Why the buyer is getting suffered after buying the property? 

Why the IT team can't stop me buying the property if they already knows the issue ?

If anyone got any solution please let us know. Thanks in advance

I really don't know how to proceed in this situation until someone help us. So much pressure going through because of this.

Did anyone went for appeal.

Please note that Appeal is to be done within 30 days of demand order date. I tried to file the appeal (using form 35), but found that AY 24-25 is not enabled in the system so we cannot select it and cannot move forward. My 30 days deadline expired yesterday.

First, it was fault of seller that he didn't link the PAN, then system that it didn't warn us at the time of TDS, then now again system which is not allowing to file the appeal. Sufferer only one person - the buyer, for none of his fault.

Then no solution for this ?

If we pay the money as per the notice will it be returned to seller through IT returns.

Firstly, seller will not accept for this as the agreement has been closed.

Secondly, if seller agrees by any change, how much percentage will be refunded ?

What would be the process for the same, we need to think for alternate solutions as well.

Have any of you filed a correction statement?

Where should we reject/reply the notice from, is it from incometax Portal or from traces website ???

Any one recieving error while submitting the correction in traces.

 

If you have submitted the correction, can you tell me where and what options would need to be selected for submitting the correction. 

 

Request you guys to tell the steps on how to submit the traces correction 

While submitting the correction on income tax portal we are not getting the assessment year 24-25

 

Any advices?

Yes, AY 2024-25 is not available in Appeal form also (Form 35) and at other places, like Grievances. I had raised a complaint with the department for this and then I was advised to write to efilinghelpdesk @ incometax.gov.in . I had written them about the issue yesterday and today I have received the acknowledgment. 

I hope the issue will be sorted out soon. But, advise all to write to the above address and get this issue recorded, so that any late penalty can be contested with the proof of technical issue.

What acknowledgement they sent you and can we ignore correction as we sent the email to that address

@ Gaurav and sumanth

 

If you guys have submitted the correction through traces, could you please let me know the steps and what are all required for doing the correction and how the process for doing that. If you are not ok sharing in public way, please do message me the instructions through pm option under profile 

I believe in TRACES, we can correct any mistake we did while filling 26QB, for example if entered incorrect value or property address, etc. It cannot be used for the issue related to short deduction notice due to in-operative PAN that we are discussing here. 

Please correct me if I am wrong.

Then how did  sumanth and gaurav submitted the correction, in incometax Portal there is no option of assessment year 24-25.

 

Just trying to understand to give the reply.

 

@ Ani goyal - can you send me a draft copy  removing your details, so that i can add and send the email to the mailer you given. You can do private message to me.

 

@ gaurav,sumanth - can you please suggest us how did you submit the reply for the notice you got. So that we will do in same way

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
11 August 2026
COMPLIANCE EXECUTIVE

YMW COMPLIANCE SERVICES LLP

Others

CA Final

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details
Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
19 August 2026
PAID ARTCILE ASSISTANT

My Legal Tax Consultants Pvt. Ltd.

Noida

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details