TDS RETURN FOR 3RD QUARTR

A practical question about TDS and PAN! When a deductee's PAN is inoperative, the tax deduction is made at a higher rate (20% in your case). Now that the PAN is operative, you want to revise the return and claim the lower tax rate (1%). Here's the clarification: Filing Revised Return 1. *Revised Return*: You can file a revised return (Form 26Q) for the third quarter of 2024-2025. 2. *Corrections*: In the revised return, you can correct the tax rate from 20% to 1% for the deductees whose PAN is now operative. TDS Payment and PAN Operative Status 1. *TDS Payment*: When you made the TDS payment, the PAN was inoperative, so the higher tax rate (20%) was applicable. 2. *PAN Operative Status*: Now that the PAN is operative, you can claim the lower tax rate (1%) in the revised return. Key Considerations 1. *Interest Liability*: Ensure you check if there's any interest liability for the difference in tax rates (20% vs. 1%) for the period when the PAN was inoperative. 2. *Revised Return Filing*: File the revised return (Form 26Q) within the prescribed timeframe to avoid any penalties or consequences. To confirm the above, you can: Additional Resources 1. *CBDT Circulars*: Refer to relevant CBDT circulars and notifications for guidance on TDS, PAN, and revised returns. 2. *TRACES Website*: Visit the TRACES website for information on TDS returns, corrections, and revisions. 3. *Consult a Tax Professional*: If you're still unsure, consult a tax professional or chartered accountant for personalized guidance. By following these steps and considering the key factors, you should be able to file a revised return and claim the correct tax rate.

If pan was inoperative on the date of payment or credit 20% needs to be deducted .if the pan was opertaive on later  u cannot file correction .

You cannot file revised return as TDS at higher rate was applicable at the time of deduction.

Deducted can claim refund while filing return. The only loss to him is interest on the excess TDS which is negligible. So, don't get into unnecessary trouble by filing revised return.