TDS Notice COME

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.