TDS Notice COME

AFTER SUBMITED 26Q2,2023 RETURN  , IT DEPARTMNENT ISSUE A  DEMAND NOTICE FOR SHORT DEDUCTION RS. 6400.00  For Defaults and/ or PAN Errors have been identified in the Regular statement filed by you for Q2 of FY 2023-24 for Form 26Q and processed by ITD u/s 200A/ 206CB

THEN WE HAVE CHECKING  OUR RETURN THOROLY AND NOT FIND  ANY MISTAKE DONE FROM OUR SIDE . EXCEPT  ONE PARTY HAS PAN NUMBER IS OK BUT HE DOES  NOT SUBMITTED HIS INCOME TAX RETURN LAST 5 YEAR  AND we hope that IT DEPARTMENT  CHERGE 20% tdS AGAINST INVOICE VALUE RS. 32000.00(U/S 94C)

HOW TO SOLVE THIS PROBLEM.

Replies (3)
Quick Summary
This discussion addresses a situation where a business received a demand notice from the IT department for a short TDS deduction of Rs. 6,400.00 for Q2 FY 2023-24. Despite thoroughly checking their return, no errors were found on their part, except for one vendor whose PAN was active but who hadn't filed income tax returns for five years. The IT department likely applied a 20% TDS rate under Section 94C to an invoice value of Rs. 32,000.00. The question is how to resolve this, with suggestions to ask the vendor to file their returns and ensure PANs are active before deducting TDS to avoid future demands. The user is now asking if filing a revised TDS return after the vendor linked their Aadhaar, updated PAN details, and submitted an ITR for FY 2022-23 will result in a nil demand.

Pls ask to vendor to file the return and also u should check PAN particular Active or Not before depositing the Tax and return to, other wise u have to pay demand.
You are required to deduct 20% tds from this vendor and deposit the same to the government. Until the vendor links his PAN, Aadhar - you need to continue this higher rate deduction

After Ask about this  problem Vendor Links his Aadhar , PAN Card Last week  & also submitted ITR return for the F.Y. 2022-23.

Now if we will submitted REVISED TDS return then Income Tax Department will raised Nil demand  ?

 

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